Now is the time to buy

[skater]

Since all the D & G's want to constantly post about the sky falling in and linking D&G media articles, I thought I'd share what I just heard on Today Tonight. I tried to share the link and to add the relevant page, but I think I'm just too quick and it's not showing yet.

For those interested in looking it up, they were talking about The Block at the time and mentioned that now is sure not the time to sell. However, Neil Jenman was mentioning that if you do want to buy property, now is the time to be gearing up and buying. He gave a couple of suburbs in Melb, Syd & Qld too.

For the record, I don't do my research based on what the media has to say about anything, but it is blatantly obvious that there are many that do.

 

[BuildingBlocks]

I watched the same story, how about how they ripped into the owners who sold the 4 houses to channel 9.

"Lucky investors who made 3.6 million dollars".

Firstly 2 of them they bought last year which would not have been free, secondly the other 2 they only paid 37k for, but they have held them since 1977. Yeah ...lucky!

 

[lizzie]

Yep - had this discussion with hubby last night as I was trying to convince him to buy a neutrally geared property in top location (so a drop in interest rates or increase in rent by $10/wk puts us firmly in the black on this one).

The time to buy is when the market is in the doldrums - and you pick up some good bargins if you stick with the fundamentals of what makes a good investment.

He was arguing that now is not the right time because no one else is buying and if it was a good buy then why hadn't it sold? ... until I asked if he wanted to wait until the market went back up, and the property was now $50k more, before could justify to himself it was a good buy?

AND I pointed out that our last 3 buys during GFC1 (held two that are only just negative by less than $20/wk - sold one during the brief inbetween boom for very tasty profit), have since made good capital gains for us, also sat unsold for many months.

Offer made today.

 

[Jamie M]

The time to buy is when the market is in the doldrums - and you pick up some good bargins if you stick with the fundamentals of what makes a good investment.

I totally agree. For me, property was and will always be, a long term asset - so buying whilst the market is flat or declining only makes sense.

Whilst, like Skater, I wouldn't base any decision on media generated stories (particularly good old today tonight), I'm seeing some decent deals in my neck of the woods, and I'm looking forward to capitalising on the current market in the near future.

Cheers

Jamie

 

[StefanA]

Now is the time to buy if
- the bank agrees
- prices don't go down in nominal or real terms.
- you can't put your money anywhere else with a higher return.
- you have a choice of employed respectable long term tenants.

 

[twobobsworth]

Not disagreeing that some value is returning but I you lost me when you mentioned TT and Jenman in the one sentence.

Jenman also suggested in 2007 it wasn't the right to invest in property. I purchased a property at the time through a Jenman agent and remember speaking about it with the agent. Both value and rent has increased around 50% since then.

 

[bluestorm]

The time to buy is when the market is in the doldrums - and you pick up some good bargins if you stick with the fundamentals of what makes a good investment.

Exactly!. But if you think property is in the doldrums currently, then you clearly have no idea how bad the global economic situation is, and how much of an impact it will have on Australia property. Government FHOG rises and the like ain't gonna save Australian property this time.

AND I pointed out that our last 3 buys during GFC1 (held two that are only just negative by less than $20/wk - sold one during the brief inbetween boom for very tasty profit), have since made good capital gains for us, also sat unsold for many months.

Yeah, huge government spending to prop up a property market that would have otherwise corrected already will do that. But all that it has achieved is just delaying the inevitable correction a little.

The people who are probably telling the masses on Today Tonight that it's a time to buy, are probably the people to are trying to sell and get out, and let someone else take the Capital Loss.

 

[bluestorm]

I totally agree. For me, property was and will always be, a long term asset - so buying whilst the market is flat or declining only makes sense.

Yeah. Investing in falling assets is good and makes plenty of sense
Maybe you can negatively gear it as well. That way you'll not only have a declining asset, but also be forking out even more money as well. Bonus!! You are a financial genius aren't you.

Meanwhile the smart investor is positively geared currently, building up a lot of capital on other things, while the property market corrects, and then pouncing. 7.5yrs to retirement (early!!!) yah. The only thing that annoys be is that I'll have to wait another 25yrs AFTER retirement for the Superannuation dollars :-(. What a rort super is.

 

[Aaron_C]

And how much money do you need to retire early?

 

[bluestorm]

And how much money do you need to retire early?

~$2+million generating $150K/pa at least by then. Plus extra from day trading, and a website generating passive income. $250K+/yr I think should be comfortable.

Anyway, I hope people think it's the time to buy property now. More distressed sales later on. I really don't think people realise how bad the world economic and debt situation is.

 

[skater]

OK, I found it:

http://au.news.yahoo.com/today-tonight/latest/article/-/10096327/lessons-from-the-block/

I should have titled this thread "Now is the time to buy, 3 million people know"

 

[bluestorm]

OK, I found it:

http://au.news.yahoo.com/today-tonight/latest/article/-/10096327/lessons-from-the-block/

I should have titled this thread "Now is the time to buy, 3 million people know"

So the experts say the property market isn't following the property spruiker script and is a lot weaker than they had thought it would be, and you want to listen to them for advise when they say it's a good time to buy Is this the intelligence of Somersofters now??
Everyone who could see that the world was heading into economic trouble and this would impact property (except the property "experts" and Somersoft bulls).

Just as the contestants of The Block were left to learn the hard way, the real estate market in 2011 isn't following the script either, according to finance expert Noel Whittacker.

“At the moment the markets are scary. I mean the property market is down, so you've got scary headlines,” he said.

 

[hobo-jo]

I should have titled this thread "Now is the time to buy, 3 million people know"

99.9% of the 3m that watched the finale are sheep, not contrarian investors, so they won't think to buy now and infact the results may spur them to get out while they still can.

.05% are residential property investors who buy dips, so having seen the show will see the slow market as an opportunity to take advantage of desperate vendors.

.05% can see that the world's debt/sovereign crisis are far from over and that there are still years of price falls ahead (best case scenario = slow decline with possibility of a crash if GFC II causes trouble). They know better than to try and catch a falling knife. Housing a few percent off recent peaks is far from blood on the streets. They also see that we are in recession (may be confirmed technically in next GDP release) and suspect that unemployment will increase and that rents and prices could fall like they did in the last one.

 

[Jamie M]

Yeah. Investing in falling assets is good and makes plenty of sense
Maybe you can negatively gear it as well. That way you'll not only have a declining asset, but also be forking out even more money as well. Bonus!! You are a financial genius aren't you.

Meanwhile the smart investor is positively geared currently, building up a lot of capital on other things, while the property market corrects, and then pouncing. 7.5yrs to retirement (early!!!) yah. The only thing that annoys be is that I'll have to wait another 25yrs AFTER retirement for the Superannuation dollars :-(. What a rort super is.

Meh - your comments don't bother me one bit. I'm seeing opportunities in the current market. I'll look to capitalise on them.

Happy investing.

Jamie

 

[Different Here]

Since all the D & G's want to constantly post about the sky falling in and linking D&G media articles, I thought I'd share what I just heard on Today Tonight. I tried to share the link and to add the relevant page, but I think I'm just too quick and it's not showing yet.

I don't know how you can say now is a good time to buy. Yes, the market is in the doldrums and prices are falling, but those prices are still very close to the peak of the biggest housing bubble in Australia's history, possibly the biggest bubble in the world. It astounds me that people can think prices might suddenly boom again, from current bubble levels!

 

[RumpledElf]

I'm selling now. Selling cheap too, I have a HIA order to deal with that I just couldn't get rid of and it does very nasty things to the value of a house, so someone's going to get themselves a nice bargain.

Other half refuses to buy anything now. There's some really good properties for sale, two of which I have my eye on but both are overpriced (one has already dropped once, the other is a fairly new listing), the agent says the other one could be had for a 30% discount because the owner is old and 'keen' to sell and I'd probably get a big discount for buying 3 properties in a row at once (doesn't that go against The Block logic?). Both of the two I am watching are 3-in-a-row, one could be haggled down for being in a dubious location and would be a great spot for three very basic 150sqm 3x1's pitched at first home owners or lower income retirees, the other is in a seriously prime location and you'd be insane to do anything less than three 250sqm 4x2's with all the perks. So I don't think we could afford to develop the second one anyway.

How's commercial finance these days anyway? It was almost impossible to get a PPoR loan and all the stuff I'm looking at is for development.

 

[evand]

Buying a property while the market is declining does not make sense. Why would you do that? It goes against all investing fundamentals (as opposed to mum and pop property investing fundamentals)

I totally agree. For me, property was and will always be, a long term asset - so buying whilst the market is flat or declining only makes sense.

 

[zed_kid]

I don’t know what to do at the moment. I have found lots of CF neutral IPs which to me signals to jump in, but all the crazy talk about the current global situation and aus being in a recession, is it just noise? Not this time… I think.

 

[tcocaro]

True.. a much better approach is buy high and sell low

Buying a property while the market is declining does not make sense. Why would you do that? It goes against all investing fundamentals (as opposed to mum and pop property investing fundamentals)

 

[lizzie]

so much doom and gloom on SS - definately the time to buy

But only if you stick to good investing fundamentals - nothing fancy, neutral or positively geared, close to shops, schools/uni, transport, work, diverse employment area. And by close I means less than 5mins walk.

Just offered on one yesterday