Now all of you who said prices would never come down #2

G

greedy saffa

so boys and girls.

What's the outlook - 20% / 30% decline through forced sales when all those margin calls come home to roost?

where are we going to grab us some bargains - us greedy cashed up looters?

[Edit: posts split from this thread]
 
Last edited by a moderator:
greedy saffa said:
so boys and girls.

What's the outlook - 20% / 30% decline through forced sales when all those margin calls come home to roost?

where are we going to grab us some bargains - us greedy cashed up looters?
Click to expand...

Lots of "bargains" in the share market at the moment. Where are you looking greedy saffa??
 
greedy saffa

explain to me how a share market margin call will trigger a forced sale of a property because I have difficulties linking the 2

cheers
 
Bill

I am suggesting that margin calls typically force investors to refinance or liquidate other assets.

There are not to many assets large enough to swallow a margin call besides - cars, investment properties, holiday homes, etc - depending on the size of the call obviously.

My only question is whether the banks would consider suspending margin calls in the current freefall.
 
Jingo - I'm in Melbourne and sadly admit to investing in the territory I'm most acquainted with. I've always been a fan of the niche market south of Sandringham - Mentone, Beaumaris, Black Rock, Parkdale, etc.

Prices soared out of control in 3 out of those 4 suburbs in the past 12 months. Beaumaris went from a $700k median to $1.05m median (over 40% leap in 12 months - with prices now coming off and most auctions cancelled since Feb (low turnout) and agents reverting to private treaty sales instead.

I'm sitting on my cash but quietly speculating (not so quietly seeing as it is in this forum) that the prices in that niche will come off to below 2006 prices.
 
Letiha - let me be clear on this.

I don't get a kick out of people losing money.

I do, however we live in a society where people, instead of behaving responsibly and investing with diligence, have made irresponsible decisions with damaging consequences.

We live in a society that is fast becoming a replica of the USA. We expect life to be easy, we expect money to fall in our laps, to sit on our arses and get rich easy.

I'm ashamed when I see how selfish people are - how they expect to have what they want, when they want, with no idea of what it takes to earn it and deserve it.

We are fast turning a land of hard working opportunity into a land of selfish, hold out my hand and the government will provide and if I don't get instant gratification, I count on the Herald Sun to put me on the front page.

We need a reality check.
 
Waverly Bay -

You can only buy what you can afford.

If you don't have the cash or the ability to get a mortgage - how will you make the most leveraged investment of your life?

I also question a run into property seeing as the median Australian property is 7.5 times the median Australian wage.

In a time when job cuts are only starting...

Even a shortfall on the supply won't save the bunnies that had $$$ signs in their eyes at the top of the last boom (2007)
 
Waverlybay,

Your article is definitely correct, I have about 120k cash,
and I am ready to start walking around and making offer
on property currently listed at the 199k range,

depends on how this plays out, I might get it !

Just imagine if a lender collapses and the administrator (liquidator)
call on all the loans......for those smaller lenders you don't really know how
they work behind the scene, in theory they should have your loan locked (matched) in bonds, that would be the best case, but if they had been financing it on an on-going basis from overseas markets because of the huge fall in AUD they will have difficulties meeting that..., in addition to the frozen wholesale credit market now....

One more property fund provider in AUD suspend all redemption today....

http://www.moneymanagement.com.au/A...FM-suspends-distribution-payments/240670.aspx
 
I'm sure all of you who who sit and laugh at us property investors would be happier if we did nothing at all and wanted us to rely on the government to support us through retirement.

I don't get what your issue is, are you jealous because you either don't have the balls or the means t invest and you just want to make excuses.

"I can't afford to buy to but my own home because these big mean greedy investors are dribing the prices upr'

Get over it and grow some balls and stop making excuses, of course prices go down in the short time, but my btis in the long time you willalwats see growth.
 
hey i got great idea, im ganna sell all my properties tomorrow... best idea ever... im ganna work a crap job for next 40 years, and get the pension... i hear its paying $230pw tax free... its better then loosing all your money on property when it falls by 50%, i think ive seen the light... everybody else seems to be doing it, why shouldnt i? you over optimistic greedy landlords.
:p
 
Why do people think you have to struggle through the rough times with multiple negative geared properties, negative equity etc to be a property investor.

Its only people who bought in the good times, thinking they are going to last forever that are in this situation. And they justify it any way they can.

Nathan, you don't have to sell all your properties but you should sell half.....if you can. You just dont know how long this is going to last mate.

I think the fun times are only just beginning.
 
greedy saffa said:
Jingo - I'm in Melbourne and sadly admit to investing in the territory I'm most acquainted with. I've always been a fan of the niche market south of Sandringham - Mentone, Beaumaris, Black Rock, Parkdale, etc.

Prices soared out of control in 3 out of those 4 suburbs in the past 12 months. Beaumaris went from a $700k median to $1.05m median (over 40% leap in 12 months - with prices now coming off and most auctions cancelled since Feb (low turnout) and agents reverting to private treaty sales instead.

I'm sitting on my cash but quietly speculating (not so quietly seeing as it is in this forum) that the prices in that niche will come off to below 2006 prices.
Click to expand...

Prices have moved substantially in the bayside suburbs you mention above. I wouldn't be at all surprised to see prices soften in these areas. Sounds as though you have assets in the area and are waiting for the right time to buy again??

Regards Jason.
 
letiha said:
What i don't get is what these freaking losers get their kicks from people loosing money....
Click to expand...

On reading greedy saffa's reply below - sounds as though he is an investor and is just waiting for the right time to buy himself??

letiha said:
Jingo - I'm in Melbourne and sadly admit to investing in the territory I'm most acquainted with. I've always been a fan of the niche market south of Sandringham - Mentone, Beaumaris, Black Rock, Parkdale, etc.

Prices soared out of control in 3 out of those 4 suburbs in the past 12 months. Beaumaris went from a $700k median to $1.05m median (over 40% leap in 12 months - with prices now coming off and most auctions cancelled since Feb (low turnout) and agents reverting to private treaty sales instead.

I'm sitting on my cash but quietly speculating (not so quietly seeing as it is in this forum) that the prices in that niche will come off to below 2006 prices.....
Click to expand...
 
evand said:
Why do people think you have to struggle through the rough times with multiple negative geared properties, negative equity etc to be a property investor.

Its only people who bought in the good times, thinking they are going to last forever that are in this situation. And they justify it any way they can.

Nathan, you don't have to sell all your properties but you should sell half.....if you can. You just dont know how long this is going to last mate.

I think the fun times are only just beginning.
Click to expand...


Hi evand,

I enjoy your posts and appreciate your investment experience over the long term. However I would question whether Nathan should really sell now?? If I were Nathan I would be ensuring that I had enough reserves to see myself through some tough years ahead. I'd personally want enough to cover the outgoings for around 3 -4 years, giving me enough time to find another job and the confidence to know that I could still meet loan repayments. Or if the worst came to worst enough time to liquidate the entire portfolio whilst paying out all debt. (Not a cheery thought I know, but it pays to have thought of these situations before they occur!)

It is always good to hear from investors who have been through a number of cycles. Seems like our current predicament will be a major challenge to say the least!

Regards Jason.
 
Lol, thanks for feedback guys... i was being smart last night after a few drinks, due to a negative comment someone made... i was saying i will go on old age pension. I dont plan on selling anything, im looking @ some new purchases at present... i belive now is a bad time to be selling (good to buy), investors are buying @ present, suckers will buy later...(the heard) when prices rise too far...

I posted my thoughts on economic climate before i will repost here as to why.

Today, 12:59 AM
Nathan
Member
Top 250 Join Date: Mar 2006
Location: nsw
Posts: 486



Sunfish, i was going to post, and posted similar but not as in depth in other thread. its spot on and i believe this will happen 100% sure...

let me make one point very very clear the people that will be hurt the most by this, is the SAVERS, i will post a link where robert kyiosaki goes into detail about this so you can see someone more cedible then all us here. he has been pretty spot on with a lot of his predictions. this was taken in febuaray this year, and may sound like a ploy to offload his silver holdings but... the fundamentals are very very correct.

This is a different ballgame we are in, all countries in a global way have pulled their hands up (and pants down) and said we are screwed.

I myself am very optimistic about the new future and what will arise over the next 3 year time frame. Not wishing any hyperinflation, but as he says it will take a strong person to fix this mess up. they caved in to patch a sinking boat by the $700billion bail out. it would have been stronger charachter for bush to stand up and say NO BAILOUT because injestiong more magic funds into the economy is making the situation worse...

It is true we may see a day where we get paid $10 grand a week as a basic wage, but bread will be $50 a loaf, and milk $40 a litre...

Its interesting times ahead, and you can crusify me f you want, however no one knows the final result this the day has come and gone, and we have many finacial gurus working together for solutions, nothing is in sight... the only way is to deflate the worth of our fiat currencies.

Heres the link..
http://www.youtube.com/watch?v=FOKn7tiUMyc
Make sure you watch it a few times, it may just save your wellbeing.
 
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