As in the last bust where properties dived around 20-40% in some areas, are you waiting for the next bust like this to occur & then BUY UP BIG like 5-10 properties OR are you continuing to buy undervalued properties (eg. 20% under market) now no matter how the market is fairing??
ARE YOU WAITING TO BUY IN THE BUST OR CONTINUING TO BUY UNDERVALUED IPs NOW?
- Thread starter Watermelon Man
- Start date
We don't seem to have the Sydney-type busts that other cities have. FNQ just seems to keep rising for a few years...levels off for a few years and then cranks up, whilst people are sleeping.
At the moment it is continuing to rise...so tis a good time to get in, as I think it has at least another 12 months to go, before levelling off again. So I've bought all I want to for a while....just checking out the stats and managing the IP's for the time being. Oh...and focusing on the renos.
At the moment it is continuing to rise...so tis a good time to get in, as I think it has at least another 12 months to go, before levelling off again. So I've bought all I want to for a while....just checking out the stats and managing the IP's for the time being. Oh...and focusing on the renos.
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don't hold your breath ...
I think you'll be waiting a fair while for a bust. Just today, consumer sentiment is at a 30 year high, unemployment is at all time lows, interest rates are (generally) low, inflation is low (but banana's are "up"), wages are under control for the time being, rental vacancies are at all time lows, rents are rising, the China driven boom in "all things that we dig out of the ground" just continues, the share market is delivering good real profits without being overvalued... Markets like Melbourne have a basic undersupply of dwellings, construction approvals (residential) won't catch up for some years .... I could go on ....
..and we're waiting for a bust ?
Gees ...What do the "good times'' feel like ??
LL
I think you'll be waiting a fair while for a bust. Just today, consumer sentiment is at a 30 year high, unemployment is at all time lows, interest rates are (generally) low, inflation is low (but banana's are "up"), wages are under control for the time being, rental vacancies are at all time lows, rents are rising, the China driven boom in "all things that we dig out of the ground" just continues, the share market is delivering good real profits without being overvalued... Markets like Melbourne have a basic undersupply of dwellings, construction approvals (residential) won't catch up for some years .... I could go on ....
..and we're waiting for a bust ?
Gees ...What do the "good times'' feel like ??
LL
My theory is that with all the media attention on rates, people are now accustomed to the idea that rates are probably going to go up...sometime. So, they factor a bit of that into their decision making, ie. they're used to rates going up and it's less of an impediment to buying.
There's a lot of people buying properties up within a week of listing where I'm looking. People aren't so scared of pulling the trigger as much now. It's still expensive, but I agree with LL, there are very few reasons for a bust.
Jireh
There's a lot of people buying properties up within a week of listing where I'm looking. People aren't so scared of pulling the trigger as much now. It's still expensive, but I agree with LL, there are very few reasons for a bust.
Jireh
Hi Watermelon Man,
I'm continuing to buy IP's in good locations as regularly as I can. How often I can do this depends on my ability to obtain finance, and service the loans. I try to buy regularly, and therefore prefer to build up my portfolio gradually rather than in one sudden splurge.
As to when a bust will come I'm not sure. My strategy would be to build up cash reserves and make sure I buy IP's in locations that will be in demand in the years to come.
Regards Jason.
I'm continuing to buy IP's in good locations as regularly as I can. How often I can do this depends on my ability to obtain finance, and service the loans. I try to buy regularly, and therefore prefer to build up my portfolio gradually rather than in one sudden splurge.
As to when a bust will come I'm not sure. My strategy would be to build up cash reserves and make sure I buy IP's in locations that will be in demand in the years to come.
Regards Jason.
so if the next bust is 5-7 years away, there is potential for growth in the next 5 years. why would you deliberately give away this growth?
i don't know that there will be busts as historically known - apparently the eastern states had a "bust" over the last year or so - so where was it? overvalued areas of sydney dropped around 10% - but everywhere else seemed to have stalled briefly rather than dropped. and the east coast is now showing signs of recovery, so the "bust" seems to be over.
it was more like a, pause and catch your breath, than a bust.
i don't know that there will be busts as historically known - apparently the eastern states had a "bust" over the last year or so - so where was it? overvalued areas of sydney dropped around 10% - but everywhere else seemed to have stalled briefly rather than dropped. and the east coast is now showing signs of recovery, so the "bust" seems to be over.
it was more like a, pause and catch your breath, than a bust.
A bust to come?
A bust to come?
We could deabte this and that, interest rates, macro reform but consider this:
I just voted BUY and of the 29 voted so far, a massive 89% are the same. With that response how can prices drop another 20 to 40%. We are at the bottom now in the East Coast and some pockets rising fast IMO.
I just got $800k pre approved for an IP buy up. I am not nervous about buying well at this time but I am nervous about waiting too much longer.
Peter 14.7
A bust to come?
We could deabte this and that, interest rates, macro reform but consider this:
I just voted BUY and of the 29 voted so far, a massive 89% are the same. With that response how can prices drop another 20 to 40%. We are at the bottom now in the East Coast and some pockets rising fast IMO.
I just got $800k pre approved for an IP buy up. I am not nervous about buying well at this time but I am nervous about waiting too much longer.
Peter 14.7
Definitely buying now, I don't need great bargains, just average market price does me fine.
Similar to what Lizzie said - for all we know the next "bust" (if there is one) may be 5yrs away so let's say for example you look at buying an IP now for $200k, it rises to $255k (5% pa CG) in 5yrs, then the bust comes and it goes down to $210k-220k - you'd still be behind if you had'nt bought now.
Cheers
Steve
Similar to what Lizzie said - for all we know the next "bust" (if there is one) may be 5yrs away so let's say for example you look at buying an IP now for $200k, it rises to $255k (5% pa CG) in 5yrs, then the bust comes and it goes down to $210k-220k - you'd still be behind if you had'nt bought now.
Cheers
Steve
The question one needs to be asking ones self is a no brainer -
Is the decision to purchase(or do what ever) moving you forward and getting you one step closer to your end goals/dreams?
Unfortunately a lot of people lose sight of their overall big picture perspective(if they have one at all) and focus on the day to day decision making (that may take them blindly off course) along their wealth journey.
Some food for thought.
Is the decision to purchase(or do what ever) moving you forward and getting you one step closer to your end goals/dreams?
Unfortunately a lot of people lose sight of their overall big picture perspective(if they have one at all) and focus on the day to day decision making (that may take them blindly off course) along their wealth journey.
Some food for thought.
We'll probably buy something in sydney in the second half of this year.
Might be a unit in the eastern suburb of a house somewhere in the North. who knows maybe even Newport
I'm not expecting significant growth in the next couple of years , but I am hoping to get a good buy , by taking our time and getting to know the market.
While Sydney has turned down , it does appear ( at least in the " better " areas ) to have avoided a major collapse . I don't consider the drop todate to be major.
There is always the possibility of a further down turn triggered by OS / US events , though with news that Soros and Buffet are buying shares in the US , that seems more remote , but that is one reason why we won't be extending ourselfs at this stage.
I think now is the time to look at well chosen properties closer to the city or unique areas like the northern beaches , but IMHO , certainly not the time to extend oneself out to max LVR's . Certainly not the time to start buying up bulk IP's in lesser areas such as Mt Druitt .
Cliff
Might be a unit in the eastern suburb of a house somewhere in the North. who knows maybe even Newport
I'm not expecting significant growth in the next couple of years , but I am hoping to get a good buy , by taking our time and getting to know the market.
While Sydney has turned down , it does appear ( at least in the " better " areas ) to have avoided a major collapse . I don't consider the drop todate to be major.
There is always the possibility of a further down turn triggered by OS / US events , though with news that Soros and Buffet are buying shares in the US , that seems more remote , but that is one reason why we won't be extending ourselfs at this stage.
I think now is the time to look at well chosen properties closer to the city or unique areas like the northern beaches , but IMHO , certainly not the time to extend oneself out to max LVR's . Certainly not the time to start buying up bulk IP's in lesser areas such as Mt Druitt .
Cliff
I think if the property is good one that will always be in demand, and has a good yeild then why wait 5-7 years for the bust.
if we look at the idea that property doubles every 7-10 years, then if we have a bust in 7 years we would have to have massive growth inbetween. So theoretically if you can afford to hold a property it will still double .
Why wait growth now will unlock equity so that we can purchase more later.
if we look at the idea that property doubles every 7-10 years, then if we have a bust in 7 years we would have to have massive growth inbetween. So theoretically if you can afford to hold a property it will still double .
Why wait growth now will unlock equity so that we can purchase more later.
Watermelon Man, I have 1 question: if you wait to buy in the bust, how do you know when the bottom is? Personally, I still prefer to buy when the numbers make sense. If you've never bought IPs before, waiting until the bust isn't the best way because you simply won't know when the market hits bottom.
I'd rather buy regularly and let appreciation happen over time than to try and time the market.
Alex
I'd rather buy regularly and let appreciation happen over time than to try and time the market.
Alex
Funny how Warren Buffet waited around 35 years to buy the company Dairy Bell because when he bought it it was REALLY CHEAP; even though he waited all that time & obviously could have bought it lots of times before that.
I'm not suggesting investors wait THAT LONG, but there is some truth to waiting for an excellent buy!!
I'm not suggesting investors wait THAT LONG, but there is some truth to waiting for an excellent buy!!
Different scenario really, yes I'm sure he waited for 35yrs to buy Dairy Bell. But he didn't just sit on his hands for 35yrs and buy nothing, he went into other areas/markets and found other things to buy.
Same goes with realestate - you may not buy the apartment in the CBD now, or for another 5yrs, but does'nt mean you could'nt make good money buying an old house 5kms from the city in the mean time.
There are so many different area/types of RE to buy, to say there will be an overall market crash that will send prices falling so we can then pick up bargains is short sighted. Right now there are areas going down, whilst other areas are booming. It'll be the same in a market crash - not every RE area goes down in a crash, that's where good R&D will serve investors well.
Same goes with realestate - you may not buy the apartment in the CBD now, or for another 5yrs, but does'nt mean you could'nt make good money buying an old house 5kms from the city in the mean time.
There are so many different area/types of RE to buy, to say there will be an overall market crash that will send prices falling so we can then pick up bargains is short sighted. Right now there are areas going down, whilst other areas are booming. It'll be the same in a market crash - not every RE area goes down in a crash, that's where good R&D will serve investors well.
Warren Buffet's buying?......
Can i sit on the fence please?!!
I think Sydney is close to bottoming...but am still waiting before i kick back in.
But, as the ad goes, somewhere in Aust. there is always a property boom.
We have such a vast country with so many different demographics...that somewhere will always be enjoying the sun!
Its just finding that place.
Regards
I think Sydney is close to bottoming...but am still waiting before i kick back in.
But, as the ad goes, somewhere in Aust. there is always a property boom.
We have such a vast country with so many different demographics...that somewhere will always be enjoying the sun!
Its just finding that place.
Regards
