DUMB investors.

W

WebBoard

Guest
From: Peter Davidson


I think that sums up the property boom and it's momentum at the moment. Wouldn't we all agree?
 
Last edited by a moderator:
Reply: 1
From: Nigel W


On 5/9/02 10:29:00 AM, Peter Davidson wrote:
>I think that sums up the
>property boom and it's
>momentum at the moment.
>Wouldn't we all agree?

Do you have stats which suggest that it is investors rather than homebuyers who are driving the prices up?

If that is the case (and I don't believe it is - but I'm happy to be proved wrong) then your SMART investors should keep circling like vultures, ready to swoop down and feast on the carcasses of overextended DUMB investors if interest rates climb materially.

I would like to think you're right *grin* but I don't think it is ever that simple. As I understand it, the reality is that most first home buyers aren't in fact buying new properties and getting their doubled grant, rather the majority are buying established, albeit lower-end, properties. The owners of those properties (now cashed up) are the ones buying upwards I think.

But this is just my opinion. I'm interested to hear what the stats gurus think.

One other point. When we bandy around labels like DUMB, we should remember that some so called DUMB investors bought at the last peak, were negatively geared and bunkered down for the next decade but are now laughing because they recognised that if you take a LOOOOOONG term approach (which I'm not necessarily advocating) it's pretty hard to stuff up in property investing. [ps no I'm not one of them]

So let's try to steer away from name calling and concentrate on the facts and the debate...

Cheers
N.
 
Last edited by a moderator:

Sim

Administrator
Reply: 1.1
From: Sim' Hampel


In the area I concentrate on - which is in Adelaide, it is mostly owner occupiers who are buying the stuff and driving the price up. I'm looking mostly only at houses on decent sized blocks within 10km of the CBD, and these are what the owner occs are also after.

The frenzy from the first home buyers seems to have died down to a slightly more rational pace... most of the people who could afford to buy have now done so, it seems.

 
Last edited:
W

WebBoard

Guest
Reply: 1.1.1
From: Craig A


I don't actually agree with you Sim. We went to an auction in Reynella 2-3 weeks ago where the house was expected to sell in mid $50's. (The house had been vandilised quite badly. It is unliveable and you would need to spend minimum of 15K before you could move in and start the real renovations.) The house had approx 500 people at the auction and we left when the bidding got to $92K. I thought 57-60K was a fair price.
 
Last edited by a moderator:

Sim

Administrator
Reply: 1.1.1.1
From: Sim' Hampel


On 5/10/02 9:00:00 AM, Craig A wrote:
>I don't actually agree with
>you Sim. We went to an
>auction in Reynella 2-3 weeks
>ago

Yup, this does not surprise me Craig - my area is much closer to the CBD (less than 10km) where prices have already moved substantially, beyond the reach of most young first home buyers.

Stock levels are starting to increase, and properties are taking longer to move. Demand is still very strong without quite the frenzy that I saw earlier.

The wave has moved out, and the outer suburbs are now experiencing a lot more of the frenzy.

 
Last edited:
Reply: 1.1.1.2
From: Duncan M




I agree as well.. South of the city is as hot as anywhere, mainly first home
buyers.. I know the property that you're referring to, I concur, somewhere
around $60K was a fair price.. People go stupid at Sheriff sales etc..

Duncan


-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: DUMB investors.


From: "Craig A" <aaa@bigpond.net.au>

I don't actually agree with you Sim. We went to an auction in Reynella 2-3
weeks ago where the house was expected to sell in mid $50's. (The house had
been vandilised quite badly. It is unliveable and you would need to spend
minimum of 15K before you could move in and start the real renovations.)
The house had approx 500 people at the auction and we left when the bidding
got to $92K. I thought 57-60K was a fair price.



To reply: mailto:propertyforum.38482@bne003w.webcentral.com.au
To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
To login: http://bne003w.webcentral.com.au:80/~wb013
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2
From: Jan Hellyer


I agree with some (not all) of the sentiments expressed here. I invest in the Illawarra region of NSW. (South of Sydney). The prices there are definitely driven by the FHOG. Just another insight for you. I work in the Customer Contact Centre of a bank in the Lending Division. I talk all day to customers with existing home loans so I get a pretty good overview of the climate (& lots of opinions). Up to now most investors have been sitting on their hands waiting & researching while the young'uns snapped up the lower end of the market via the FHOG. A lot of investors have also used this time to prepare their finances, extend LOC, make improvements to their properties & have new valuations done. Now with rates starting to wobble & point upwards investors have started to rub their hands with glee & are ready to pounce. Owner Occupiers panic the minute a rate increase is mentioned & adopt a "wait & see" tactic. So I think most investors are actually SMART & see the big picture. Personally, I don't go anywhere near an auction incase I'm swept up in the frenzy & end up with an overpriced dog!
Regards
Jan
 
Last edited by a moderator:
Top