Investors Remorse

[WebBoard]

From: John Hodgetts


Hi all
Perhaps you all out there may be able to allay some concerns that appear to have come about.
In the last 2 weeks I have settled on 2, what I would rate as 6-7 /10, units in reasonably up market inner city suburbs. My trade is the building industry, so I am familiar with the nature of the beasts. This has finally come about after the gumption to finally get into the IP game was resolved.
My problem is this; as we are all trying to gain as much info as possible, we had the chance to go to one of these free investment seminars that run on the lines of what's better property or shares?
At the end of the evening I spoke to the Investment presenter and was dismayed as to his advice,( within 30 seconds), that I would be better to sell them straight off, cop the losses and reinvest in 1 house in a much more expensive suburb.He was also not keen on the idea of quote "rushing out over the next 10 years and buying property, yearly and virtually anywhere,as it will not return anywhere near the amounts that we are expecting"
Now I know this guy has an axe to grind to obviously sell us his services but is there anything in what he recommends and has anyone else struck this sort of response lately?

 

[Sim]

Reply: 1
From: Sim' Hampel


Were they telling you to only buy property off the plan and are they selling property themselves (or a related entity) ?

 

[Jacque]

Reply: 2
From: J Parker


Well I must say that rushing and buying "virtually anywhere" will definitely lead to trouble! Due diligence and careful suburb/town selection is the key to any property investment. As for the changes to the big house, well I would consider that two lots of selling expenses, capital gains tax due etc would be a big cost to outlay and the house would have to be a pretty good bargain!

The fellow sounds like he obviously had his own agenda, ie; to suck you into his confidence and flog you his products (probably some self-managed funds or some new overpriced OTP apartments).

It is hard to ignore negativity from others, especially when those "others" have no IP's of their own or when they have their own products to sell.

At some point we all have to make decisions and it sounds like you've made some already, John. Stick with what you know, do your research and be confident in your decisions. Only you can make the final choices and sleep easily at night with them. Good luck!

 

[Rolf Latham]

Reply: 3
From: Rolf Latham


Hi John

Sit

Ta

Rolf

 

[Michael Yardney]

Reply: 4
From: Michael Yardney


John
While I don't know the details of you investments (and congratulations on making them) I do know that anyone who can make an instant assessment of them (30 seconds you said) is either a fool or a liar.
You know yourself the homework involved in assessing whether a property is a good investment or not. How could he logically jump to such conclusions.
He is also a very poor salesman as he lost all credibility.
As so many posts have said on this forum, be careful who you listen to for advice and what is their ulterior motive in giving it.
As for whether 2 smaller properties are better than one big one...I can see a good argument for spreading your investments into 2 properties such as they are probably more affordable for tenants and they are unlikely to both be vacant at the same time.
Don't regret you decision and don't listen to fools who tell you to sell especially if they want you to buy their product.
(By the way...this is advice from someone who conducts seminars and recommend people buy my product!)
Michael Yardney
Metropole Properties

 

[WebBoard]

Reply: 4.1
From: John Hodgetts


Dear All
Thanks for your advice. Sometimes its hard to stop and stand back from "the expert advice" you pay for and to just let forums like this alleviate some fear and sleepless nights.
Maybe 2 more IP purchases will help me feel better!!!
John

 

[gailh]

Reply: 4.2
From: Gail H


And don't forget you can add some value to them - do a bit of up-grading.

If you listen to all the advice you hear, you will become paralysed and won't know what to do (and will end up doing nothing). And expensive houses can definitely be hard to get tenants for. Don't regret it - congratulate yourself on acting when so many don't. Well done.

Gail

 

[Donna L]

Reply: 4.2.1
From: Donna L


Scaremongering helps nobody. Why
spend your life making people sick with
fear over some decision they have made.
I'm sure most people on this site would
have something in their past they might
not do again and have found ways of
turning it to their advantage. I have
bought two OTP apartments (I think I am
supposed to roll my eyes and spit at the
ground at this point) but I have made
good money on both and had no trouble
renting them. Ideally the more land value
the better. You can look for that next time.

Donna L

 

[Jakk]

Reply: 4.2.1.1
From: Jakk Bass - The SLUM LORD


G'Day John

In years to come and after you have purchased and settled your 10th or 11th IP, you will listen a lot more, evaluate what you hear a lot more and discard most of it.
Investment Property is a personal thing and what makes others comfortable might make you uneasy, so stick to that gut feeling, your inner voice that has told you to "Just Do It." Experience is the best education, I can personally testify to that, sometimes mistakes are made but the lessons learnt will usually last a lifetime.
Congratulations on your Investments.

regards
Jakk

** "Nothing great was ever achieved without enthusiasm" - Ralph Waldo Emmerson

 

[WebBoard]

Reply: 5
From: Brett Burt


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Many investment experts I have talked with advise that property dynamics =are changing dramatically over the next 10 years due to baby boomers =moving through and the following generation being much smaller and =therefore what happened 1950 to 2002 may not happen over the next 50 =years. However as Sydney will grow by 1 million over the next 20 years =I think most settled areas will keep on performing. But what goes up =(dramatically) must come down. Just look at recent decades with Tokyo =and London.

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Many investment experts I have talked with advise =that
property dynamics are changing dramatically over the next 10 years due =to baby
boomers moving through and the following generation being much smaller =and
therefore what happened 1950 to 2002 may not happen over the next 50
years. However as Sydney will grow by 1 million over the next 20 =years I
think most settled areas will keep on performing. But what goes up
(dramatically) must come down. Just look at recent decades with Tokyo =and
London.

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[Waverlybay]

Reply: 5.1
From: Waverly Bay


Hi Brett

Side point not related directly to the original post.

Agree on the falling tokyo property prices over the years. Hong Kong and Singapore have also seen a big fall in prices by over 50% (and still falling) since 1997.

Home loan rates in hong kong are now 2.25%. With the fall in prices, rental yields are between 8% - 10%. Luscious cashflow... but would u still buy knowing that the end is not in sight for a turnaround in prices ? Not for me ! I am sticking to OZ !

RE london . Sorry , there has been a very nice boom over there in the last 10 years. Similiar to oz and the US. The north has not done as well as the south, south west areas... but there definitely has not been a collapse or a downturn in property prices. Check out.

http://news.bbc.co.uk/hi/english/business/newsid_1846000/1846029.stm

I would caution against using the asian property price collapses as somehow providing insight into the direction of the oz markets. They are driven by completely different factors in my opinion.

cheers

Waverly

 

[WebBoard]

Reply: 6
From: Choon NG


The Cycle will always be there, as market is driven by fear and greed. In my observation, there is money to be made throughout the cycle.

Regarding feeling remorseful, if you have done the "right" homework, then your judgement is just as good as anyone else. Only way you can get better is to do more, with lesser/smaller mistake each time. Maybe you can ask the consultant "How many (exact number) of the deals/products has he bought himself ?"


choon

 

[WebBoard]

Reply: 5.1.1
From: Brett Burt


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Waverly. Boom did happen in last 10 years. BUT what about London in the =pre 1990? I think you will find values went back wards substantially. =The trouble is many have short memories and think 1996 to 2002 are the =only ones that are important. The IT stock buyers thought the same =thing. Thanks for your feedback. Brett

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Waverly. Boom did happen in last 10 years. BUT what =about
London in the pre 1990?I think you will find values went back =wards
substantially. The trouble ismany have short memories and think =1996 to
2002 are the only ones that are important. The IT stock buyers thought =the same
thing. Thanks for your feedback. Brett

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