Any property gurus?

[stevz]

Originally Posted by XB GS 351 Coupe

Does not make it Dooms Day though, if I own my house and land why would I care about the rest?? I get where you are coming from, and what you are saying, but there is nothing we as an individual can do about it, we just have to work with what we have and move on.

No good being all Dooms Day, we are screwed, the world will end, why not just be happy with what we have and look after our own personal interests, could not care less about any depression, recession or banks really, nothing i can change I just have to work with it and move on to look after me and enjoy the life I have.

Going around and making investment desicions while completely ignoring the factors you mention above is downright dangerous and could amount to financial suicide.

Originally Posted by XB GS 351 Coupe

They said the same thing in the 60's 70's 80's etc etc I remember my parents looking at a house in the early 80's right on the water in the eastern suburbs was $165K at the time, and everyone said that was crazy, as they ended up buying a new house in the suburbs on a 1/4 acre block for around 50K.

The house at the beach would now be worth millions, the house in the burbs sold for about half a million 10 years ago.

I payed 165K for a three bedder in western Sydney, my parents thought I was mad paying that much, sold 10 years later for 379K.

And it keeps going, in 30 years time everyone will be looking back at 2013 thinking jeez wish I bought my house when they were that cheap, when you could still buy a house for under a million dollars.

Because the economic conditions we are experiencing now are unprecedented and we cannot look at the past as a reliable indication for the future. These are completely different times we are in.

[jimmyxr6t04]

I personally will not be buying another investment property in the short term. I want to ensure my own mortgage is just about covered with clear funds, just in case we do have a down turn or what not...

[XB GS 351 Coupe]

Originally Posted by stevz

Going around and making investment desicions while completely ignoring the factors you mention above is downright dangerous and could amount to financial suicide.

Never said I was ignoring them, I said you have to work with what you have, and look out for your own interests with what is available to you, no good being doom and gloom (will not make things any better), work with what is around us making educated decisions about how you want to live your life.

Originally Posted by stevz

Because the economic conditions we are experiencing now are unprecedented and we cannot look at the past as a reliable indication for the future. These are completely different times we are in.

They say that every year, everything is unprecedented, always has been always will be, in 50 years time it will still be unprecedented., the 50's, 60's, 70's etc all were unprecedented.

Seriously You worry too much, in the end life will go on, we have a better standard of living, more toys, better cars, more stuff than ever before, may be some of that will have to slow down, who cares if it does??

[GASWAGON]

Originally Posted by jimmyxr6t04

I personally will not be buying another investment property in the short term. I want to ensure my own mortgage is just about covered with clear funds, just in case we do have a down turn or what not...

Have a read of this artcicle and also check the site out a lot more.....Definate down turn coming once China's spending frenzy tapers off! Also the U.S are in a bit of a pickle because all the 'Quantatative Easing' aka QE3 isn't working....They have had 0.00 interest rates for five years....Oz is not far away at 2.5%!!!!!!!!

http://www.dailyreckoning.com.au/the...ve/2013/12/16/

[jimmyxr6t04]

I'm just more concerned if interest rates do take a hike up, i'd prefer to have more in my offset account. I'd prefer to pay interest on 150k, than say 450k!

So for the next year or so, i'll ease off on the investments and just concentrate on smashing my mortgage, enjoying my GT with a few mods and maybe a few small holidays, keeping the larger portion of cash flow in the offset account and work the mortgage down.

[buggerlugs]

Originally Posted by EF_6

I doubt many would remember 'Dave289' Stevz that was like 6 yrs ago now!

Anyone looked at the aussie house price chart lately.....Surely it cannot go any higher?

Oh I do, Stevz is either Dave289 or he is related to him...............

[Dash_XR]

Originally Posted by stevz

Going around and making investment desicions while completely ignoring the factors you mention above is downright dangerous and could amount to financial suicide.





Because the economic conditions we are experiencing now are unprecedented and we cannot look at the past as a reliable indication for the future. These are completely different times we are in.

If **** hits the fan I'd still rather be struggling to pay off a mortgage then struggling to pay rent. There are other options to take as well, subletting rooms, revert to interest only for a while, rent the house out and move in with friends or family.

With renting all you can do is get a smaller and smaller place. That's if your application even gets excepted. It's pretty tough at the moment I think, 30 plus applicants per property etc.

[XB GS 351 Coupe]

Of course interest rates will go up, they can't get much lower, when I had my fist home loan I was paying up to 14% interest, now it's very low, so make the most out of it.

'Make hay while the sun is out' as the old saying goes, no good saying this is crap now that it's sunshine it can only get worse, lets not bother making hay.

[GASWAGON]

I just been for a job interveiw.....The guy interveiwing me said things are very hard at the moment because everyone is screwing prices down and trying to find ways to cut costs anywhere they can..... There will only minimal overtime in this job.

The last three months I have been trying to find forklift operating work instead of fixing them. I have found out the whole industry is screwed and employers only put people on casually then **** them off once the job is done....there are NO permanent jobs.

As far as I can tell this is just the beginning...In the states this new 'casual only' stuff is going on everwhere and its destroying peoples lives.....The more debt the employers take on the more they need to find ways to save and get jobs done cheaper...

Not bloody good!

[vztrt]

Originally Posted by XB GS 351 Coupe

Of course interest rates will go up, they can't get much lower, when I had my fist home loan I was paying up to 14% interest, now it's very low, so make the most out of it.

'Make hay while the sun is out' as the old saying goes, no good saying this is crap now that it's sunshine it can only get worse, lets not bother making hay.

Its a great time to smash your mortgage at the moment. I love paying FA interest and watching the amount I owe drop. Its a lot better then when I first bought the house and I'm pumping as much as I can to reduce the loan.
Hopefully I can get it to a point were I can buy a second house as this one served me well when I was renting it out.

[XB GS 351 Coupe]

Exactly my point smash it while you can, then the damage will be minimal to non existent once the situation gets worse.

So look at the situation and work with it, no good overextending yourself, now is the time to make hay (pay off your depts as much as possible) or get your foot in the door.

[Crazy Dazz]

Originally Posted by Stefan

If I buy an investment property I can no longer claim interest? When did that happen? I better call my accountant. I'm going to have to pay back a huge amount of tax.

Forget the accountant, just get yourself an ENGLISH tutor. In the option discussed he said he would borrow money to buy a new place and move into it with his mum, whilst renting out his Mum's old place.
THAT is the number one "Rookie Blunder" for property investors. Unless he or his Mum already have a substantial mortgage on the existing property, renting out the old home is NEVER a good idea.

[Crazy Dazz]

When I look back at the “Outrageously Expensive” houses I could have bought a decade ago, its sickening to think how much money I could have made. That said its frightening to look at today’s prices and think that THIS is the new baseline. Will prices quadruple again in the next 10 years???
Perhaps its all relative? I remember several years ago speaking to a very elderly gent, and he told he how he once bought an acre of land on Scarborough Beach Rd for 14 Pounds, and later sold it for 16.
I bought my first block of land for $26,000. Sold it a year later for $54,000, and was very happy with the profit. Many years later I bought a block for $82k, and sold it for over $320k.
Here’s the thing though. When I bought the block for $26k, I was earning around $20k a year (1.3 years,) when I bought the block for $82k, I was earning around $55k (1.5.) Now an equivalent block would be about $400k.

The scary thing is that demand in Perth will keep going up for the foreseeable future. I don’t know about Melbourne, but I have HEARD that migration continues to swell your population.

[GT0132]

Originally Posted by XB GS 351 Coupe

They said the same thing in the 60's 70's 80's etc etc I remember my parents looking at a house in the early 80's right on the water in the eastern suburbs was $165K at the time, and everyone said that was crazy, as they ended up buying a new house in the suburbs on a 1/4 acre block for around 50K.

The house at the beach would now be worth millions, the house in the burbs sold for about half a million 10 years ago.

Yeah that reminds of a time a year or so ago wwhen my staff and I spent a day clearing out old archives in storage. Came across an old Sydney Morning Hearld from 1972 and we all had a bit of a laugh at the real estate section.

4 bedroom house in Castlecrag , views of middle harbour - $65,000 (fast fwd to 2013 no houses in that suburb sell for less than $2M with water views)

2 br unit North Sydney, garage, balcony - $18,000. If you can find a good 2 bedder just over the bridge for less than $700k these days please let me know

Yeah real estate is a pretty bad investment hey?

[FPV414]

Wow this escalated. Some good links and good points to think about, but not much clarity lol. Cheers.

[GT0132]

Originally Posted by Crazy Dazz

Forget the accountant, just get yourself an ENGLISH tutor. In the option discussed he said he would borrow money to buy a new place and move into it with his mum, whilst renting out his Mum's old place.
THAT is the number one "Rookie Blunder" for property investors. Unless he or his Mum already have a substantial mortgage on the existing property, renting out the old home is NEVER a good idea.

Yep and lots of people do it. I'm an accountant but don't specialise in this area but friends in the industry who do say they see so many people trying to incorrectly claim for interest on money borrowed which is used to buy a place to live in because the old house will be rented out. You gotta be careful how you plan your borrowings and living arrangements to get the most benefit.

[zilo]

I'm sitting in front of the computer screen with a big bag of popcorn watching property prices waiver....and those with mortgages sweat.

Holden going, Ford going...etc etc....what could possibly go wrong with property?

We made an obscene profit on one of them water view places talked about ^^^^.

Couldn't see it going up anymore and instinct correct so far (for the last 3 years).

[Serial_Fool]

When you typically see any investment being advertised on the Television, that usually means that it is at or near a top in the market.

All the graphs and statistics show that home prices at the moment are astronomical compared to our peers internationally and even ourselves historically.

A few lean years is all that stands between us and US-tier prices.

[stevz]

Originally Posted by Serial_Fool

When you typically see any investment being advertised on the Television, that usually means that it is at or near a top in the market.

All the graphs and statistics show that home prices at the moment are astronomical compared to our peers internationally and even ourselves historically.

A few lean years is all that stands between us and US-tier prices.

Exactly. Many experts have stated that the massive capital gains we have seen in the last decade or so are a once in a lifetime event that will probably never be repeated again. This theory is supported by the fact that the global economy has hit a wall, with no light at the end of the tunnel for the forseeable future.
The spruikers who repeatedly claim that you will double your money with property every 7-10 years are simply doing so to protect their own interests and/or trying to reel in the gullible suckers out there.
The housing affordability index is already at a record high, with the median house price being 8-9 times the average wage. Most first home buyers are already locked out of the market. If house prices are to double again but wages stay the same and living costs continue to skyrocket, we will have a full blown crisis on our hands.
We also have to remember that the property prices in Australia are being artificially propped up to a high degree by foreign investors. All we need is for these investors to be spooked for whatever reason and they will be out of here quicker than you can blink, resulting in a flood of properties on the market with no buyers and a collapse of the prices.
Housing is a basic necessity and should never have been allowed to become a vehicle for greedy investors to play with . This is what the share market is for. As a result, we have a flawed system which is unfairly propped up by the taxpayer (negative gearing), a generation of people for whom housing is completely unattainable , and a detriment to the economy as billions of dollars are tied up in mortgages instead of being spent in the economy.
The only ones getting rich out of this charade are the banks, as is reflected by their multi billon dollar profits.

[Dash_XR]

How are first home buyers locked out of the market when in Melbourne at the moment you can buy a $300,000 house and pay nearly the same amount per month as you would renting it?

Agree with the last bit though but there's nothing you can do about that.

[stevz]

Originally Posted by Dash_XR

How are first home buyers locked out of the market when in Melbourne at the moment you can buy a $300,000 house and pay nearly the same amount per month as you would renting it?

Agree with the last bit though but there's nothing you can do about that.

You could buy a tin shack in the middle of the outback for $20k, but who would want to live there?

[Dash_XR]

This outbacks 30 mins from the CBD.

[mr smith]

Originally Posted by buggerlugs

Oh I do, Stevz is either Dave289 or he is related to him...............

The old house price thread.

That's folklore.

[XB GS 351 Coupe]

Sevez you remind me of my father in law, worked as a minimum wage factory worker all his life and still to this day (retired for 12 years) complains how everyone was making more money than he was when he was working.

When I suggest that he should have changed, jobs, and could have worked as a labourer on a construction site earning three times the $$ he replies, 'tried that the work was too hard', when I ask him why he left school in year 9, he says because he was not interested in school and that it was too hard.

Yet he complains that the labourer was getting payed more than he was and that the doctor that went to year 12 and then went to uni gets payed too much money, and that others who bought houses and invested money cheated the system. He even accused me of tax fraud because I was claiming the interest from my investment property

He had every opportunity, yet everything was too hard and he choose the 'easy' option, yet complained that everyone was getting more.

[stevz]

Originally Posted by XB GS 351 Coupe

Sevez you remind me of my father in law, worked as a minimum wage factory worker all his life and still to this day (retired for 12 years) complains how everyone was making more money than he was when he was working.

When I suggest that he should have changed, jobs, and could have worked as a labourer on a construction site earning three times the $$ he replies, 'tried that the work was too hard', when I ask him why he left school in year 9, he says because he was not interested in school and that it was too hard.

Yet he complains that the labourer was getting payed more than he was and that the doctor that went to year 12 and then went to uni gets payed too much money, and that others who bought houses and invested money cheated the system. He even accused me of tax fraud because I was claiming the interest from my investment property

He had every opportunity, yet everything was too hard and he choose the 'easy' option, yet complained that everyone was getting more.

I live quite comfortably thank you very much and this has got nothing to do with my own personal circumstances whatsoever, so don't make assumptions that couldn't be further from the truth.
My opinions are based on research, economic conditions and common sense, but as I am not a property investor I can see it without the rose coloured glasses on, unlike some.
It seems many highly geared property investors are very nervous and touchy at the moment and its easy to see why.

[buggerlugs]

Originally Posted by stevz

I live quite comfortably thank you very much and this has got nothing to do with my own personal circumstances whatsoever, so don't make assumptions that couldn't be further from the truth.
My opinions are based on research, economic conditions and common sense, but as I am not a property investor I can see it without the rose coloured glasses on, unlike some.
It seems many highly geared property investors are very nervous and touchy at the moment and its easy to see why.

Yep, sounds more and more like Dave289 everyday..............

[GASWAGON]

From 'The daily reckoning'.......Austerity just around the corner.

http://www.dailyreckoning.com.au/aus...ty/2013/12/18/

[stevz]

Good article EF_6


I particularly like this comment:

Australia needs a few years of austerity. We need to realise that we've been living beyond our means for a long time. We need to pull our head in, understand that genuine economic growth and prosperity comes from investment and innovation, not speculating on house prices and relying on China to do the heavy lifting.

and one of the comments below:

swapping houses between each other is not the basis of a sound economy

[ford man xf]

You only lose out if you choose to sell the property, really its common sense, even if there is a slump in your house value as long as your paying off the mortgage and don't sell you have lost nothing, why? Because house prices will always go back up, even if it takes 10 years to recover. As has already been alluded too, if you lose your job there is always ways to find extra cash by renting a room out, and if you don't have enough savings (at least 3 months worth of mortgage repayments for emergencies) then you probably really shouldn't have a mortgage to being with.

[ford man xf]

People would remember the House prices thread, which was around 3 years ago, all the doomsayers claimed the end was near and the bubble would burst, a whole heap of economic turmoil has happened since then, where did house prices go? Up! Even if there is a property crash, it's not like prices will plummet $100,000's of dollars (which is what the doomsayers want because they want to get into the market) the market may cool off and values will stay stagnant until things pick up again.