Making serious money from property all luck?

[Piston Broke]

I keep looking at that graph and realising what a great asset RE really is .

Amount of sales going up coupled with prices going down means people cannot afford to keep their houses.
They are selling out, and holding costs are still increasing.
Most buyers of the last few years are just increasing their losses.
All this with $80,000,000,000 of stimulus and low interest rates.

Must be free standing house on own title
Must be within 10km of Bris/Syd/Melb or 5km of Adel/Per
Must be in a median or higher suburb on a socioeconomic scale
Must be cashflow positive at current interest rates
Must be cashflow positive at 9% (my view on long term interest rates)

I've always said let the market decide whether I'm a buyer holder or seller.

 

[Peterw]

Interesting, the OP asked if it were posible to make some money out of investing in residential property. Some people gave some positive advice, naturally with recommendations to do research. Others participated with "mines bigger/better than yours" comments, or did ..."XYZ".... once, and it did not work out so good. Wonder if the OP will find some value in this thread.

 

[.toe]

Reading several of the stories on here how people made some money, most of the stories have somewhere in them "after buying the property for x amount the price went up by 70% (some large figure) in just this short amount of time because of a boom"
It seems like everyone who's made there money has been lucky and ridden a boom, and the people you don't hear telling the stories are the people who brought too late.

So is a house, after rent and tax deductions, are you destined to only really ever to make say 7-10% profit yearly and only if you get lucky see a massive capital increase?

Pauly you're hearing some nice stories, and some people make some money this way. But the people who's lead you want to follow are the ones who've still got money after 20 years or more, and those people without exception have solid strategy.

It's like reading a newspaper. The front page lead is what sells the paper, but it's often what's inside that's most important. Anyone who's made a tonne of money very fast can undoubtely tell you a story about how they bought right before a boom. But not many rich long term investors who've aquired many properties can say that every property they bought appreciated straight away.

To me the real trick is to have a strategy that allows you to go on aquiring investments regardless of markets going up and down. Either you do plenty research and buy markets that are going to be hot, then use those gains to buy into new hot markets. Or you have a strategy that allows you to buy cheap, or add value, again using your profits to do it again.

 

[redwing]

I never said investing is easier or fairer. But to quote examples of one company out of possible 100s of blue chips and say if only is unfair in my books.

I am sure there are thousands of grey nomads travelling around the country wishing they didn't invest in Telstra and bought at $9 odd a share to only see its value drop to $2.78.

I certainly do not expect certainty before I invest. Investing is a risky business and with risk comes rewards. Mind you I was buying right/left and center over the past 4 months of uncertainty in the sharemarket only to now enjoy double digit CG of my portfolio value with healthy dividends on it's way.

The point I am trying to make is people make it sound as if CBA was a screaming buy in 1996. It was as easy as counting 1-10. Let me tell you people who bought CBA at $60 in 2007 are still waiting to break even after 3 years. So in my books CBA would have been dud investment had you bought it in 2007 but would have given fantastic return had you bought at $30 bucks just one year later.

Cheers,
Oracle.

You just never know which share is going to be the next one to outperform like Fortescue Mining, Sonic Healthcare, Leighton Holdings, Wesfarmers or CBA.

Propertunity

Are you able to update that chart also ;o)

 

[Deltaberry]

Not really. But for those who fail it doesn't mean their luck ran out. Most likely they undertook certain risks which materialised, that's all (eg gearing, buying boom bust areas, development gone wrong etc).

 

[Propertunity]

Propertunity
Are you able to update that chart also ;o)

Yes, see attached. Same ole same ole - no bubble, just up, flat, up