40,000 Australian property investors bail out - less buyers now..

[Marketing Mogul]

Here's some interesting research from the ATO

Figures released by the ATO show there is already a reduction in the number of people with investment properties, down from 1.73 million in 2007-08 to 1.69 million in 2008-09.

That is 40,000 less investors in the market place who may have owned 1-2 properties?

Those people reported an average net loss on their investments of $6528.

The April Australian Bureau of Statistics figures on housing finance were a sharp reminder of the weakness in the residential real estate market.

Higher interest rates, the end of the first-home buyers grant, a general weakening of the non-mining sector of the economy and a strong dollar have combined to dampen the outlook for the housing market, and therefore the demand for housing finance.

Independent commentators, as opposed to the traditionally boosterish commentators within the industry, are now questioning whether house prices have simply got too expensive for the market.

Cause for concern or ignore the report?

Full story here at The Australian Online http://www.theaustralian.com.au/bus.../story-e6frg8zx-1226036173358?from=public_rss

 

[ldriver]

2nd post- prove you're not a troll, as I don't see the point in feeding you.

 

[Ocean Architect]

I may be wrong, but that was GFC time, yes?

 

[Intrinsic_Value]

Here's some interesting research from the ATO

Figures released by the ATO show there is already a reduction in the number of people with investment properties, down from 1.73 million in 2007-08 to 1.69 million in 2008-09.

Full story here at The Australian Online http://www.theaustralian.com.au/bus.../story-e6frg8zx-1226036173358?from=public_rss

And what was happening during 2008-09????????

By any chance was it the GFC????????

Interesting piece non the less.
Traders try to focus on forward data, the media loves historical data.

Where do you want to be?

 

[Marketing Mogul]

Hello there

Hello there i thought this story was interesting because if there are less property investors then there are less buyers of this type.

Now sure that means there could be less competition for juicy ripe bargains. And boy oh boy are there some great bargains available from distressed sellers. Ye ha!

However there will be less demand for investment property and this may affect price growth and capital growth.

And I am sure there are many other angles and interpretations to the large exodus of investors from the market. Cut their losses and get out before the market downturn.

And other angles blah blah blah...

What's your take?

 

[bluestorm]

While I'm one that thinks that the property market will correct, I would not look too much into these figures Marketing Mogul.

The figures are from the GFC period. There would have been some investors who sold up by choice, or had to sell up to cover margin calls on shares for example.
The drop in the investor numbers was filled by FHB with the increased FHOG.

 

[BuildingBlocks]

2008 was a busy period for Nathan, he bought all 40,000.

Now back under the bridge you go, troll.

 

[Sunfish]

I may be wrong, but that was GFC time, yes?

I'm an old old phart and can read the date: April 09, 2011 12:00AM

Edit: As an ex-serviceman 12:00 AM is meaningless.

 

[bluestorm]

2008 was a busy period for Nathan, he bought all 40,000.

Now back under the bridge you go, troll.

That's right. When someone on Somersoft is not the property spruiking type, and god forbid suggests that prices may come down, they are automatically a troll, aren't they BuildingBlock.

Grow up.

 

[BV]

Not only there are less investors in numbers but there are also less investors looking to buy.
I recently sold a property and investors were probably 1 in 10 of the people turning up at the opens.

The strange thing though is that I ended up selling to an investor.
I had a few offers from first home buyers who for various reasons couldn't proceed.

 

[Marketing Mogul]

That's right. When someone on Somersoft is not the property spruiking type, and god forbid suggests that prices may come down, they are automatically a troll, aren't they BuildingBlock.

Grow up.

Ah yes stating the obvious for BobTheBuilder property markets can go up, go across and go down. Derr... So what

If anyone needs a dose of upbeat news to keep a positive mindset read on

The following story is from Real Estate Invester Breaking News…. http://www.rebonline.com.au/breaking-news/3730-perth-the-next-hotspot

Investors looking for a sound return on their investment should look at the Perth property market, Hegney Group’s executive chairman Gavin Hegney has claimed.

While property prices in the Western Australia capital have been fairly sluggish of late, Mr Hegney said the resource boom should turn things around soon.

“Perth is on the radar as being the nation’s next hotspot or growth city,” Mr Hegney said.

“We are seeing money come out of Melbourne and go to Western Australia. Melbourne has had a good run, but now investors are looking for the next hotspot and the focus is on Perth.

“The expected resources boom will push up prices in the area over the coming 12 months, which means buyers will see a good return on their investments.”

Take it easy BB

 

[BuildingBlocks]

That's right. When someone on Somersoft is not the property spruiking type, and god forbid suggests that prices may come down, they are automatically a troll, aren't they BuildingBlock.

Grow up.

If someone joins a forum and their first posts are all links to articles saying that the sky is falling then yes.

 

[devo76]

That's right. When someone on Somersoft is not the property spruiking type, and god forbid suggests that prices may come down, they are automatically a troll, aren't they BuildingBlock.

Grow up.

Get real bluestorm. It's not that he is talking about something negative in the property market. It's the fact that it's his first posts on a "property forum". He is trying to be polite to throw people of the scent but it's bloody obvious.
I call troll. Happy to be proven wrong.

 

[Sunfish]

This is my 5,647 th post but you would still call me a troll.

Get real! You just don't like contra-opinions.

 

[devo76]

This is my 5,647 th post but you would still call me a troll.

Get real! You just don't like contra-opinions.

If that is directed at me then you are wrong.

 

[bluestorm]

Get real bluestorm. It's not that he is talking about something negative in the property market. It's the fact that it's his first posts on a "property forum". He is trying to be polite to throw people of the scent but it's bloody obvious.
I call troll. Happy to be proven wrong.

I didn't read it as a troll post. There were some valid points about why the property market is cooling. The property bulls just don't like the idea of anyone suggesting that the property market is heading for tough times.

I read the following as a valid argument. You read it as trolling. Why does a first post count any less that your 1021st property spruiker post?
"Higher interest rates, the end of the first-home buyers grant, a general weakening of the non-mining sector of the economy and a strong dollar have combined to dampen the outlook for the housing market, and therefore the demand for housing finance. "

 

[Marketing Mogul]

If someone joins a forum and their first posts are all links to articles saying that the sky is falling then yes.

See the previous post re The following story is from Real Estate Invester Breaking News…. http://www.rebonline.com.au/breaking-news/3730-perth-the-next-hotspot

Anyone could submit a post re prices rising, prices being flat or prices falling.
So what!

My AFL footy team sometimes wins and sometimes loses. So what! Or maybe I could take it all a bit too seriously and over react.

The post stated 'the sky is falling' A bit of an over reaction don't you think?

And this corker from Devo 76 "It's not that he is talking about something negative in the property market. It's the fact that it's his first posts on a "property forum". He is trying to be polite to throw people of the scent "

Are you guys a bit paranoid?

LOL
Take it easy boys

 

[Sunfish]

If that is directed at me then you are wrong.

If the cap fits, wear it.

 

[Aaron Sice]

I think you will find these stats correlate directly with the tightening of lending criteria.

Which would also point to why there was a similar % drop in standard homebuyers.

 

[Sunfish]

But Aaron, isn't "tightening lending criteria" merely Ying vs "buyer's grants" Yang?