Ok,
I have been reading threads of late with nothing to say because I am still making $$ in property and plan to do whatever happens. I see many people here speculating that the market will fall, it is too high, media is saying this or that.
I will revert to a post in a thread I made earlier that:
"Did anyone forget that somewhere like sydney had almost a decade of decline and stagnant growth from 2003? Until 2010 the market was still flat/crap... Now were meant to have a fall??
NSW survived a crap government, GFC, 9% interest rates, a flat/falling business economy, and now there is a housing shortage, new government, low unemployment, 7% interest rates the prices are meant to fall? Oh I forgot to mention rents are between 50-80% higher today than 2003.
I doubt any of the bubble bust is going to harm well bought properties."
I say this not being flippant, I say it as I am and still will be buying properties no matter what. There is two fundamental reasons of buying properties and being successful in any market.
1) Buy below market value - this ensures you have a buffer built in incase the market falls you dont lose out and that you have potential to extract equity.
2) Ensure a cashflow neutral - positive position. If times do potentially get tough then you are not forced to sell without a job etc as they are not raping your bank account.
Do not take this as advice to go on a spending spree, but as feedback as I remember all this negativity came out in the early days of my investing and people said the properties I was buying would make me bankript etc etc... I remember when I started to hear that drivel within a period of 12 months I had made $1,000,000 in equity gains. - from buying below market value, small growth and structuring correctly.
I agree with the negative sentiment also, people will get wiped out and lose money as they always do. They will pay too much for a nice property or buy an OTP property or something they have added emotion to.
Remember property investing is a business, and like an business you need to focus on the numbers. You dont buy a business because its good to lose money do you?
Just my POV on the meadia storm.
Nath.
I have been reading threads of late with nothing to say because I am still making $$ in property and plan to do whatever happens. I see many people here speculating that the market will fall, it is too high, media is saying this or that.
I will revert to a post in a thread I made earlier that:
"Did anyone forget that somewhere like sydney had almost a decade of decline and stagnant growth from 2003? Until 2010 the market was still flat/crap... Now were meant to have a fall??
NSW survived a crap government, GFC, 9% interest rates, a flat/falling business economy, and now there is a housing shortage, new government, low unemployment, 7% interest rates the prices are meant to fall? Oh I forgot to mention rents are between 50-80% higher today than 2003.
I doubt any of the bubble bust is going to harm well bought properties."
I say this not being flippant, I say it as I am and still will be buying properties no matter what. There is two fundamental reasons of buying properties and being successful in any market.
1) Buy below market value - this ensures you have a buffer built in incase the market falls you dont lose out and that you have potential to extract equity.
2) Ensure a cashflow neutral - positive position. If times do potentially get tough then you are not forced to sell without a job etc as they are not raping your bank account.
Do not take this as advice to go on a spending spree, but as feedback as I remember all this negativity came out in the early days of my investing and people said the properties I was buying would make me bankript etc etc... I remember when I started to hear that drivel within a period of 12 months I had made $1,000,000 in equity gains. - from buying below market value, small growth and structuring correctly.
I agree with the negative sentiment also, people will get wiped out and lose money as they always do. They will pay too much for a nice property or buy an OTP property or something they have added emotion to.
Remember property investing is a business, and like an business you need to focus on the numbers. You dont buy a business because its good to lose money do you?
Just my POV on the meadia storm.
Nath.
