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.