Jumping on the bandwagon

I got home from work yesterday and as asked, hubbie had been around to a friends place to ask them exactly when their sons 4th birthday party is and that our 3 yo daughter will be going (they sent us a thomas the tank engine invitation and I cant find it now, I suspect my munchkin has put it somewhere safe as she is obsessed with Thomas, they also have a new phone number that was on the invite).

I ask whats new with them. Hubbie says the usuall stuff, new 4 week old baby is beautiful, the husband has been promoted into new fabulous job paying zillions more and is now boss of 4 underlings:cool:. New house is grousse and........................because hubbie is now paying 40% tax, she (they) want to get an IP. She made a vague reference to a trust but when questioned further admitted she had no idea about what it was.

I then say "what the..."? as this friend (ex neighbours), when hubbie told her about 2 of our IP purchases in August last year said "are you mad. Prices on houses have gone down, no one is buying. Why would you buy when everyone else isn't"? His answer was "because prices have gone down and no-one is buying."

Hubbie said her jaw nearly hit the floor when told those same 2 properties increased in value by about 70k whilst being at least CF neutral.

To be fair to them, the husband was keen on buying shares or a IP and couldn't talk her into it.

So now I'm thinking Is this the start of the herd now jumping on board and buying IP's - not researching the whys and wherefores- just buying because someone told them they need to when you pay alot of tax?
 
So now I'm thinking Is this the start of the herd now jumping on board and buying IP's - not researching the whys and wherefores- just buying because someone told them they need to when you pay alot of tax?

Hope there will be some people in Perth jumping on that bandwagon. :D Want to see people buying in droves again.
 
snap ... has similar conversation with my neighbour today. personally i wish i'd had more money 6 months ago and would've done some serious buying. i'm now waiting for the fhb grant to finish and wait for them to flush out of the system.
 
I read a really interesting article by robert Gottliebson about the new wave of property investors that is about to hit. Last year, the govt decided to drop the amount that you can put into super from 50k to 25k.

Now if you are a very high income earner and you are used to putting that money away for your retirement you would start looking for the next best tax effective vehicle wouldn't you? and what might that be? you got it!

Property investing.

June this year was the last time they could put the 50k in so I guess that around march /April next year the high income earners will start to panic and there will be a rush on property (i really hope so anyway:D)
 
snap ... has similar conversation with my neighbour today. personally i wish i'd had more money 6 months ago and would've done some serious buying. i'm now waiting for the fhb grant to finish and wait for them to flush out of the system.
Lizzie, is that you or the neighbour that's waiting to flush out the FHBers?

I see blue skys ahead and am actively doubling the size of my current portfolio through that long overdue development. Tender responses back 2nd December, then builder selection, design finalisation, construction contract, bank valuations, finance contract, tennant eviction, Section 94s, Construction Certificate, Section 96.1s, commencement. Easy really...

Cheers,
Michael
 
I got home from work yesterday and as asked, hubbie had been around to a friends place to ask them exactly when their sons 4th birthday party is and that our 3 yo daughter will be going (they sent us a thomas the tank engine invitation and I cant find it now, I suspect my munchkin has put it somewhere safe as she is obsessed with Thomas, they also have a new phone number that was on the invite).

I ask whats new with them. Hubbie says the usuall stuff, new 4 week old baby is beautiful, the husband has been promoted into new fabulous job paying zillions more and is now boss of 4 underlings:cool:. New house is grousse and........................because hubbie is now paying 40% tax, she (they) want to get an IP. She made a vague reference to a trust but when questioned further admitted she had no idea about what it was.

I then say "what the..."? as this friend (ex neighbours), when hubbie told her about 2 of our IP purchases in August last year said "are you mad. Prices on houses have gone down, no one is buying. Why would you buy when everyone else isn't"? His answer was "because prices have gone down and no-one is buying."

Hubbie said her jaw nearly hit the floor when told those same 2 properties increased in value by about 70k whilst being at least CF neutral.

To be fair to them, the husband was keen on buying shares or a IP and couldn't talk her into it.

So now I'm thinking Is this the start of the herd now jumping on board and buying IP's - not researching the whys and wherefores- just buying because someone told them they need to when you pay alot of tax?


I love hearing these sorts of stories about your friends - it means we are about to have some more nice cap growth. ;)
 
Lizzie, is that you or the neighbour that's waiting to flush out the FHBers?

me - although i do know that the next wave of mum and dad investors are looking at moving in to replace them. the fhb-ers were buying up a lot of the bottom end stock and pushing the prices up by $20-50k and selling very quickly.

i think the mum and dads are looking at moving in because the share market gave them such an unexpected shock that they are now realising they can't rely just on shares for their retirement.

i'm just getting twitchy as i can't start building until we sell the current reno job for townhouse build deposit - which we can't sell until just before our ppor comes off lease sept next year and we can move back in there - and once the townhouses are up the ball will be rolling.
 
I guess we're among the flood of new investors - but not quite the same style as those already mentioned. We've toyed with the idea of an investment property for years and never quite had the courage. So we moved house instead:rolleyes:.
We bought a renovators' dream, spent some money making it liveable (and have made $130,000 on it in two and a half years, so it's not all bad). Partner quit the PAYG workforce and started his own business - bank said no to a bigger loan (we didn't want to go low-doc, especially not knowing if the business would work out. We're a bit conservative, I guess). So we've waited out the two years for tax returns and steady pay - and now we're ready to go. Talk about timing - everyone else is also ready to go.
But I'm trying to take the view that, even if everyone else is getting in now, at least we're doing something. And everyone's at different stages - some will be retiring and selling down, some holding, some just starting. In 10 years, we'll be that much further down this track too. Gotta start somewhere and sometime, right?
 
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