Are we on the cusp of an upswing for property?

@This Thread!

What possibly can we doing brainstorming something which we have absolutely no certainty of getting it right? WASTING TIME (including me of course :D)

So we should all stick our heads in the sand and chant 'property doubles every 7 - 10 years.'
 
OK will have a go....by the time the papers report that a place is going to boom the horse has bolted.

For example....to use a example 10 years ago. I was wondering why places like Summer Hill, Croydon, Ashfield, Strathfield were going gang buster. But the stuff on the Bankstown line - i.e. Dulwich Hill, Marrickville, Campsie, and Hursltone Park were not despite having similar infrastructure. I bought a 2 brm unit in Campsie with a view that as the former suburbs took off my unit in Campsie would have also take off.

The 2 brm was bought for 163k in 2002....initially it was rented for $165pw....9 years later....this unit is now worth $360k and now rents for $330pw (still a bit under rented).

A friend who was very image conscious thought I was off the rocker....he went on to buy in late 2003 a unit in Rozelle for 595k off the plan. That unit is now worth about 660k. When he settled in 2005 he struggled to get the $600-650pw quoted by the developer and could only rent it for $520pw. The strate was set at $600pq and now is just under $1300pq! At that time my friend also seemed to be under the belief that the units would be worth 750k on completion...could not see his point when you could buy run down terraces for as low as 500k.

I suppose you can do the numbers and work out what is better investment. The funny thing is this guy went on to buy 2 more places off the plan in Summer Hill and Strathfield in real terms he lost money.

There you go....hope that helps.

Sash,

Any details you care to share that might help property investors to not make the same mistakes?

Cheers,
Oracle.
 
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