Rental Doom and Gloom????

[Robert]

From: Robert Forward


This makes for a very interesting read

http://afr.com/property/2001/11/22/FFX5498Z9UC.html

Cheers
Robert

The Sydney "Freestylers" Group Leader.

PS: "Be Not Afraid Of Growing Slowly, Be Afraid Of Only Standing Still."

 

[Michael Croft]

Reply: 1
From: Michael Croft


Nothing new there. It all comes back to the interplay of location and demographics. The upside is clear for all with eyes that see.

Michael Croft
"The best parachute folders are those who jump themselves."

 

[Robert]

Reply: 1.1
From: Robert Forward


Very true, the writing has been on the walls for some time now. It just takes longer for newspapers to jump on these sort of stories.

Cheers
Robert

The Sydney "Freestylers" Group Leader.

PS: "Be Not Afraid Of Growing Slowly, Be Afraid Of Only Standing Still."

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Robert

Good read and very very very timely.

The word apartment is used at least EIGHT times in the article. The housing and Unit market are and always will be VERY different beasts.

There is some value in owning a property that isnt the same as the 400 new cookie cutter places being built next to you.

If it is about supply and demand, supply something that is significantly different, and while you may still get clobbered with a a vacancy in tough times you will do better than the average, because you have less competition.

Yes a 5 % + vacancy rate hurts - I feel a basic sanity check involves running your PIA at a 10 % vacancy rate. If you cant afford the bottom line for 6 to 12 months dont do the deal, your exposure is too high.

Thats enough ranting and please seek professional advice.

Ta

Rolf