Safe as Houses?

[WebBoard]

From: Kevin Forster


Here's an article with the usual journalistic integrity and fact checking ie none!!

http://www.moneymanager.com.au/advice/house/news/2002/02/04/FFXGQJ359XC.html

Love the blanket statements:

"But while home owners in inner city areas have watched the value of their properties soar, those on Melbourne's urban fringe are still waiting to feel the impact of the boom. They'll be waiting a long time, says analyst Scott Keck, of Charter Keck Cramer (formerly Herron Todd White)." I love my no capital growth outer suburb areas which have capital growth of 75% over 3 years.

"The rental market is struggling, with owners of low–end properties already finding it difficult to find tenants. With low interest rates and the first–home buyers grant encouraging owner occupation, rental returns have plummeted." Gee what am I doing increasing rents and having many applications that I can choose?

Have a read and try to figure out what this guys angle is?

Would appreciate your comments

Kevin

 

[WebBoard]

Reply: 1
From: The Wife


He sells "higher" end property?

 

[Sim]

Reply: 2
From: Sim' Hampel


They do seem to be quoting analysts alot who of course would prefer your property exposure to be in the form of listed property trusts.

Maybe just trying to sell news... the property "boom" has been hot news for over a year now, so the negative press is starting to appear to keep people reading.

I think their statements, when taken in a broad context, are not that unrealistic. But of course, the whole point of us hanging out here is that we want to learn how to be better than average.

So Kevin, your high growth and easily rented properties were obviously well chosen and above-average ! Well done ;-)

 

[NigelW]

Reply: 3
From: Nigel W


I'm continually amazed by the number of either boom or doom and gloom reports that pop up in various papers...even those with supposedly high journalistic standards.

Rain or shine, there will always be people pottering away, buying, renovating and holding or selling who will make money - regardless of what the so-called industry experts actually think is happening (cause they're usually only right at a very macro, big picture level and then only some time after the event anyway!).

At the end of the day, it doesn't matter a damn what the median for your city is doing as long as your properties are (as judged by an independent party such as a buyer, valuer or tenant) increasing in value and rental yield!

To my mind, statistics are generalisations but real estate investing is all about the specifics of each individual property - they're all unique after all!

Maybe this impending "downturn" will help me snap up some bargains!

N.

 

[Les]

Reply: 3.1
From: Les .



G'day one and all,

I suspect journalistic standards have little to do with it. WHen headlines read "Boom times in property" or "Property set to crash", the newspaper company sells a lot more copies than if the headlines read "Property gliding along quietly".

Isn't this really all about emotion? And as we all know, emotion is NOT a major player when it comes to purchasing IP's.

Make your own call using the best info you can find, and then run with it. Newspapers will continue to over-exaggerate stories to assist their "bottom line".

Regards,



Les


- "Eschew Obfuscation" - ;^)

 

[Rolf Latham]

Reply: 4
From: Rolf Latham


Hi Kevin

Stats and damn lies. Stories with little journalistic research are becoming more and more common. Indeed straight copying from one source to another appears to be standard practice without any checks being done before going to air/press due to "time constraints"

ta

Rolf