Flippers in trouble

Some scary losses there and those figures don't include the costs of any renovations they made so they could be more.
 
Heh. I'll be in trouble if my house sells for less than about $50,000 in 18 months time when I go to onsell it. I really can't see that happening, that would be a fall of around 70% for the area. Of course if the market tanks *that* badly we'll just rent the place out ... it'll be positively geared on any value under about $90k.
 
All of our residential property is fine, it's only our business's and business loans that have problems.

Even the current 10% drop from the potential highs of late 2007 / early 2008 aren't that bad.

Definately be buying more residential property in good areas.

Regards
Graeme
 
Wow, those are some massive losses.

I wonder if many Australians scraped up a few of these "bargains" by paying cash when our dollar was US$.90 Possibly wouldn't look so bad now that our dollar is around US$.60 just based on the currency change.
 
Snakes and ladders

quoll said:
All of our residential property is fine, it's only our business's and business loans that have problems.

Even the current 10% drop from the potential highs of late 2007 / early 2008 aren't that bad.

Definately be buying more residential property in good areas.

Regards
Graeme
Click to expand...

How about a drop of 50% in your "safe" residential properties from the high in 2007 can you sustain a hit like that? If you can't you need to do something about it now. Its already very late to try and shore up your position. I started a year ago and it took until the 3rd of October to reduce our exposure. We accepted $200,000 less on a property that was valued at the height of the market in 2007.

Investing in property can be a bit like the game snakes and ladders, sometimes you have to accept the snake ride so that your overall position allows you to remain in the game.:eek:
 
hi all
as for the american market I ahve on my desk properties that were valued at 70k and are now being sold at 70k so that 75% drop
now thats a drop
and have they got buyers
no
why becuse the lenders wont lend on them so it needs cash
and cash is king
yes you could just keep renting them out
but not if you are margin called or the bank takes them
the banks can't and won't become rent managers
thou westpac tried it and sold off the idea with the military properties
again
why not
because they are not good at it.
the american market is not the same as ours and for those that think it is you just don't understand your own market
yes it is a good time to invest in the us
but invest in stuff that no one else is buying
or
buy into niche areas
flipper will always be in a problem if they buy in one time zone and they sell in another and the market changes in the middle
thats the same risk with option or cfd's.
and the market has not sdtopped correcting at the moment so it is still going to get worse there
try to have a look into the florida and even the deep south where no one wants to invest
or have a look at cleveland and boston
all good places to look at
but you need cash or a lender to lend into these area and thats hard
hope you all well
 
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Poor flipper

He looks ok to me
 

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