Hi Steve,
Buying an asset that you expect to turn cashflow positive in the short term is what real estate investment is about. :)
The problem that I see (again this is just personally opinion) for example is a house that has sold recently near me for $650K. It is now being advestised...
Hi Arkay,
It's not a mindset just a definition and people who purchase an asset purely for the gain in said asset price are speculators. This is not really something that can be debated. This isn't a bad thing and if people are competely aware and comfortable with their level of risk I'm sure...
I agree. I think it's the short term view and the lack of capacity to REALLY service the loans that will cause the problem. And I'm afraid to say that from my experience a largish number of more recent purchasers fit this description. :(
Hi Dave,
I wasn't saying anyone here had bought overvalued property, just my first hand experience amongst friend etc.
No I ment speculators. If you buy an asset hoping to make a profit from an increase in the asset price you are a speculator.
Steveadl's example where an asset costs him $2K...
Hi Steveadl,
The problem with the example you gave is that a large percentage of speculators are not taking a long term view. Many people I know have purchased properties with the plan of selling them off in 3-5 years and retiring filthy rich. I'm sure everyone agrees that LONG term...
See that's the problem, they're not really increasing at double digits. Wages aren't so rents never will. This rents rising at 20% rubbish has already been debunked. See:
http://www.abc.net.au/mediawatch/transcripts/s1857681.htm
Poor yields does not equal rental increases. Most current...
Greedy tenants??? Rents have kept track with wages so how have they had it too good? Aren't most investors also getting a discount at taxpayers expense through negative gearing?