Property Investment
3 3

122 posts in this topic

Recommended Posts

To me, the issue isn't so much a house price bubble, but more of a debt bubble.  Globally its currently starting to max out, how steep the fall is anyone's guess.

 

  • Like 1

Share this post


Link to post
Share on other sites

You will see the property market will increase but not the 50% increases we have seen in the last 5 yrs,prospect investors should start to concentrate on the fringe suburbs that are in the same level that newport,spotswood,boxhill were 20 yrs ago.

  • Like 1

Share this post


Link to post
Share on other sites

Just had some international friends visit this week.... internationally (so they say) they are expecting Australian property to halve in price and are saying that investment here is being discouraged for the moment...

Disclaimer:

I find these people generally negative. 

They are not Finance people Nor heavy investors. 

  • Like 1

Share this post


Link to post
Share on other sites

1082dd19264a894d5f12fe450f9bcd40.jpg

An update on a near 2 year old post questioning the virtues of property investment

Per the graph - investment in housing has provided strong capital growth in the past 2 years...no doubt fuelled by availability of cheap debt. It would have been a better investment than most asset classes (shares/cash) which should be evident by most people's super fund returns

Whilst I have no vested interest in where or how people invest, it's the fear of taking the first step..which is evident when you read some of the historic posts....that people need to get over. Not dissimilar to going down your first gnarly steep hill full of ruts, roots and loose stones.

Good luck !

  • Like 7

Share this post


Link to post
Share on other sites

I think that it might be the fear of buying at the top of the market that is stopping people from buying. The market will undergo a correction or worse at some point in time. Who knows when exactly but it's just a matter of time. And it could be brutal.

Sent from my Moto G (4) using Tapatalk

  • Like 2

Share this post


Link to post
Share on other sites

Getting closer now lol



Get ready....credit cycle still hasn't turmed

Number of highrise flammable apartments being built in city is now ridiculous
  • Like 2

Share this post


Link to post
Share on other sites

The biggest thing problem i can see is people don't allow for the house being empty ( no tenants ) or something that is happening more & more people NOT paying rent,  i know when my bro inlaw built 2 Factories his accountant said if you can't afford to have 1 vacant for 1yr you CAN'T afford it

Share this post


Link to post
Share on other sites
11 hours ago, Rat Finke said:




Per the graph - investment in housing has provided strong capital growth in the past 2 years...no doubt fuelled by availability of cheap debt. It would have been a better investment than most asset classes (shares/cash) which should be evident by most people's super fund returns

 

You cant really compare shares to property as 1. people don't take on same amount of debt/leverage as when buying a house to shares, its highly unlikely someone is going to load up 400k+ into shares and 2. You can choose many different shares with different returns, most comparisons of property to shares are done to an index.

Share this post


Link to post
Share on other sites
18 hours ago, Rat Finke said:

1082dd19264a894d5f12fe450f9bcd40.jpg

An update on a near 2 year old post questioning the virtues of property investment

Per the graph - investment in housing has provided strong capital growth in the past 2 years...no doubt fuelled by availability of cheap debt. It would have been a better investment than most asset classes (shares/cash) which should be evident by most people's super fund returns

Whilst I have no vested interest in where or how people invest, it's the fear of taking the first step..which is evident when you read some of the historic posts....that people need to get over. Not dissimilar to going down your first gnarly steep hill full of ruts, roots and loose stones.

Good luck !

This has been a very interesting read and as a young family who has sold a house in the outer suburbs to move inwards we are seeing the prices increase in average suburbs  (ie Greensborough, Watsonia) at near on 75k a year.

I keep campaigning to leave the city, take our deposit and buy land in the country. We could have a castle for the same price as a shitty war era home in the city.

 

  • Like 1

Share this post


Link to post
Share on other sites
This has been a very interesting read and as a young family who has sold a house in the outer suburbs to move inwards we are seeing the prices increase in average suburbs  (ie Greensborough, Watsonia) at near on 75k a year.
I keep campaigning to leave the city, take our deposit and buy land in the country. We could have a castle for the same price as a shitty war era home in the city.
 



Depending on retirement expectation, you may sell you castle in the country to buy another castle.....but in 10-15 years, if you hold where you are now, you may be able to buy a whole kingdom rather than a castle :)

- a bit tongue in cheek Fearless. Clearly lifestyle / family etc etc also must also taken into consideration.

There is some very good discussion on the forum about mental health. That is not my expertise - but if my prompting helps one person make a positive step in building personal/family wealth to enable a new KTM to be bought every 2 years post retirement, by way of example, that is a good outcome :)
  • Like 7

Share this post


Link to post
Share on other sites

Hahahaha ! Well that is obviously the main motivation for building wealth - MOTORBIKES ! 

You have given good advice here and the first thing I do before listening to someone's financial advice is to look at their lifestyle.... If they are well off and have it together I will listen but I have many mates with no real assets giving "expert" advice on money. 

I know we need to buy here but it's deciding where and wether to buy a home or an investment property. 

The homes in this area are almost out of our reach but we could invest... and are also researching other areas that may not have had the big jump yet but are in potential growth zones. 

We are not afraid of taking the jump so to speak but it is not easy to decide what to do. 

  • Like 3

Share this post


Link to post
Share on other sites
2 hours ago, Fearless Whetu said:

 

You have given good advice here and the first thing I do before listening to someone's financial advice is to look at their lifestyle.... If they are well off and have it together I will listen but I have many mates with no real assets giving "expert" advice on money. 

 

I reckon this is good advice!

  • Like 4

Share this post


Link to post
Share on other sites
Prop invest irks me. Everytime i pick a crash, the govt brings in new forms of credit i.e. Foreign investors, self managed super, first home buyer grants. Wont last



Hey Fully
Two and a half years ago I sold up everything and moved to a cave because you called the end of the world, as we know it. Do you think It’s safe to come out yet?

RF


- was trolling through some old posts and found this post and a couple of subsequent updates
  • Like 4

Share this post


Link to post
Share on other sites

Almost there....soon now!

Looking forward to less 4wd’s in the city carparks once that apartment market tumbles eh!

  • Like 1
  • Haha 1

Share this post


Link to post
Share on other sites

Statistically the current medium Melbourne house price is 880k as opposed to 670 odd k when this thread was started in mid 2015. Over that period, there has been no shortage of Internet property crash prediction articles either. 

Akin to not going outside to enjoy the summer because it might rain.  Bad weather is inevitable sometime but meanwhile much has been missed.

Investors will invest and non investors won't.

  • Like 4

Share this post


Link to post
Share on other sites
16 hours ago, FullySick said:

Almost there....soon now!

Looking forward to less 4wd’s in the city carparks once that apartment market tumbles eh!

KEYWORDS :  Almost / Soon.     Bit halfhearted mate,  or still convincing yourself that the sky has already fallen ?   

Background : FullySick bet me a six pack of excellent craft beer that the housing bubble would dramatically pop in 2017 and all ensuing chaos would occur (think mass unemployment,  widespread bankruptcies,  soup lines).     

Pretty sure we're not seeing this yet mate, but you've still got two months for armageddon!

beer_90844.jpg

image.png

  • Like 2

Share this post


Link to post
Share on other sites

Fully Sick please let me know when city apartments fall to a price affordable to the average. I will have one please. But at $650 a week loan costs its not going to happen. And do you think old mate the Australian richest is going to stop building them Fully. Sorry man, you shoud have brought 10, 20 years ago. And I can still hear those mast stays clanging.

 

  • Like 1

Share this post


Link to post
Share on other sites

You are smarter than me Faultline. I should have taken a 6 pack from Fully Sick and and the other nay sayers in each of the last 2.5 years

Hmmmm

  • Like 1

Share this post


Link to post
Share on other sites

Its a bit like an old flogged out car.

Your see the check trans and oil temp light come on, it drinks a heap so you pull over and play it safe. 

Meanwhile your mate in a similar car drives to the bottle shop, enjoys a beer and tells you that you are living in the slow lane and not to worry, he's been driving with the dash lights on for so long he doesn't care if the car fails now, because he's so far ahead and is enjoying the great personal loan rates that let him afford more fuel.

  • Like 2
  • Thanks 1

Share this post


Link to post
Share on other sites
46 minutes ago, Rat Finke said:

You are smarter than me Faultline. I should have taken a 6 pack from Fully Sick and and the other nay sayers in each of the last 2.5 years

Hmmmm

Might be risk averse,  but that particular wager is safe as houses :)

 

8 minutes ago, silent said:

Its a bit like an old flogged out car.

Your see the check trans and oil temp light come on, it drinks a heap so you pull over and play it safe. 

Meanwhile your mate in a similar car drives to the bottle shop, enjoys a beer and tells you that you are living in the slow lane and not to worry, he's been driving with the dash lights on for so long he doesn't care if the car fails now, because he's so far ahead and is enjoying the great personal loan rates that let him afford more fuel.

Good analogy.   It has beer in it.

  • Like 1

Share this post


Link to post
Share on other sites

I only have to be right once...soon...soon..az. Plus i picked a massive turnaround din i

 

Buy up big, boys its about time some near new xheap bikes came on the market with those hilux full spec p plate cars at dockland carpark

 

 And look at todays paper

 

 http://www.theage.com.au/business/property/australias-world-record-housing-boom-is-officially-over-ubs-says-20171101-gzclp4.html

 

Bam....beers thanks eammon

  • Like 1

Share this post


Link to post
Share on other sites
Its a bit like an old flogged out car. Your see the check trans and oil temp light come on, it drinks a heap so you pull over and play it safe. 

Meanwhile your mate in a similar car drives to the bottle shop, enjoys a beer and tells you that you are living in the slow lane and not to worry, he's been driving with the dash lights on for so long he doesn't care if the car fails now, because he's so far ahead and is enjoying the great personal loan rates that let him afford more fuel.

 

 

Hey Silent

Wanna lift to the bottle shop with me? The Apex gang can steal your abandoned car and we live large on the insurance proceeds

 

We will probably overtake FullySick doing 70km/h in the right hand lane, on his max 80km/h skinny tyre, because he got a flat on the way to work and is concerned about people speeding and getting ahead of him

 

 

RF

 

 

 

  • Haha 1

Share this post


Link to post
Share on other sites
Spewing i brought an investment property around the corner in 2015. Has been really crap for us so far!! Pfft



37003b7741b071e127e12e34662a146d.jpg


Don’t doubt what you are saying BB, but other people seem to be doing well ‘round the corner’

Understand you can have unsavoury tenants, but the halo effect (marketing speak) of some of your neighboring suburbs will pull the capital appreciation along.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

3 3