It's Time to Sell Property
- Thread starter Andrew_A
- Start date
Yes, I'm also surprised at the strength of the market here. There seems to be a lot of money floating around. The top end in particular is exceptionally strong. Yields were still only playing catch up but the market is taking off again. You have gotta wonder where this is all heading.
Where we rent in New Farm 2 bedroom riverfront apartments are upward of 1.1 Mil but the rent is only around $680 - 750 pw. For 3 bedrooms apartments prices are upward of 1.6 Mil and the rent is around $800 - 900pw. This is crazy. You can rent these apartments for not much more than 1/3 of the cost of owning them!
Cheers - Gordon
Investment and to decrease my LVR with property.
I'm still cheering for them if that's the case, I would love for property to keep doing what it's been doing this year in Brisbane, then my only complaint would be how little I own. I mean 30% in one suburb I follow in one year, you can get addicted to that type of CG!
I've had some really impressive dumb luck with my timing when I have bought in the past, so I'm wondering if that will also extend to selling
hehehehe...i hear ya mate!!
i'll see if i can find their info and flick it across to you...interesting reading as they both seem to be going against the general thought pattern of most other commentators at the moment - maybe GHPC have gotten to them!!
i'll see if i can find their info and flick it across to you...interesting reading as they both seem to be going against the general thought pattern of most other commentators at the moment - maybe GHPC have gotten to them!!
True. But, have you considered how dangerous this forum would be without us?
A closed loop of mutual reassurance (some, less kind than I, would call it "P!ssing in each other's pockets") is not condusive to good decission making in a constantly changing world.
Just this humble sceptic's opinion.
I'm sorry Buzz, HG doesn't accept information 'from the trenches' for a specific area (such as desirable inner Melbourne). It's only valid discussion if the data comes from the ABS or the Investatron 2000.
Would be interested in reading that, thankshehehehe...i hear ya mate!!
i'll see if i can find their info and flick it across to you...interesting reading as they both seem to be going against the general thought pattern of most other commentators at the moment - maybe GHPC have gotten to them!!
Absolutely agree and think you have raised an excellent point!
Exposure to toxic information is a problem I think about a lot, and the internet is a great place to be exposed to harmful input.
Personally I'm comfortable with my decision, as I said I would ideally like to never sell property in this country and would be prepared to buy into any crash just because I have a belief in our long term future. I don't think I have been influenced by people who would view burying a box of gold coins in the backyard as an investing strategy, but it's worthwhile to consider what influences you are acting under.
From a micro/macro whatever viewpoint selling when it's a sellers market and people are clamouring to buy is probably not a bad time to be selling I think. There is a trader saying 'When the ducks are quacking, feed them', not sure if that applies at all well but I just like the saying
Last edited:
There is a trader saying 'When the ducks are quacking, feed them', not sure if that applies at all well but I just like the saying
Most profitable to feed the last of the quacking (wood) ducks....they're the hungriest....and the one's Ponzi liked to be out of earshot of......
This was inevitable with a thread titled like this on SS, and with heavy poster/green dotters commenting on selling their own IP's - they titled it 'Doom and Gloom on SS'!
http://forum.globalhousepricecrash.com/index.php?showtopic=23495
Is it ever really a 'bad time' to sell ordinary, under-performing IP's?
http://forum.globalhousepricecrash.com/index.php?showtopic=23495
Is it ever really a 'bad time' to sell ordinary, under-performing IP's?
Impressed.
I am often quite impressed with the honesty shown on this forum... both from the bears, bulls and the hybrids.
This topic and the discussion of whom has lightened their debt burden is interesting.
I sold whatever IP's I had over the last ~3 years and was happy to convert 'paper' to real profits.
I'm looking @ the stock market... perhaps it's the bear in me but I am really having problems finding real value there also... Advance/Decline ratios are too thin to believe this is a broad rise in the entire market (ie. bhp, RIO and a number of other big companies are carrying the ASX Upwards)...
Will sit mostly on cash (and previous shares) until the new year... possibly catch a dip (or get burnt out on the dead cat bounce)... wish me luck.
As for Real Estate... it's done VERY well for a number of years ... hardly unrealistic for many to expect it to have a rest on Capital Gains for a period (long or short)..
I am often quite impressed with the honesty shown on this forum... both from the bears, bulls and the hybrids.
This topic and the discussion of whom has lightened their debt burden is interesting.
I sold whatever IP's I had over the last ~3 years and was happy to convert 'paper' to real profits.
I'm looking @ the stock market... perhaps it's the bear in me but I am really having problems finding real value there also... Advance/Decline ratios are too thin to believe this is a broad rise in the entire market (ie. bhp, RIO and a number of other big companies are carrying the ASX Upwards)...
Will sit mostly on cash (and previous shares) until the new year... possibly catch a dip (or get burnt out on the dead cat bounce)... wish me luck.
As for Real Estate... it's done VERY well for a number of years ... hardly unrealistic for many to expect it to have a rest on Capital Gains for a period (long or short)..
How much dough will you do from the tax on the cash, inflation eroding same, cap gains tax on the property sales and selling costs on same?
I think you will have done/will do better just to sit on your properties for a while, or take out some equity and put it into some other profitable investment. Not all property markets are flat right now.
Possibly there is
I wouldn't want to be selling under conditions where buyers have all the power, at the moment the sellers in Brisbane are calling the shots. I'm seeing what I see as 'try it on' prices being put forward and the houses seem to be moving. When I was looking to buy in January it was quite different so it's impressive how things can change.
Perhaps the market will shoot up another 30% before we get a buyers market though, so there is risk in timing always.
Basically it is always time to revisit your investment strategy. I suspect for those with high lvr's, little margin for rate rises, and the usual potential risks to serviceability, it is time to sell down to a more comfortable level. Fortunately with property being such a slow moving target, it's easy to make adjustments. And as for the cap gain issues upon sale, see first sentence, or get a better accountant.
It boils down to what are you comfortable with, hence the mortgage 'stress' media stories. Yeah sure it is possible to change your comfort zone, how how many really do? In my experience, many seasoned investors revert to their original settings in times of stress, am seeing it right now - right here.
cheerio,
Michael
It boils down to what are you comfortable with, hence the mortgage 'stress' media stories. Yeah sure it is possible to change your comfort zone, how how many really do? In my experience, many seasoned investors revert to their original settings in times of stress, am seeing it right now - right here.
cheerio,
Michael
I personally think Brisbane still has a few more years till it hits its peak. I think we are at about 7-8 on the economic clock and still have a little way to go. I am getting rid of the unit and possibly buying 1 - 2 houses with the equity.. Very confident that the market still has quite a bit of spark in it.
Mind you I was'nt investing in the late 80's or early to mid 90's...
Mind you I was'nt investing in the late 80's or early to mid 90's...
