Sydney prices to plunge!!

Talking the Property Market Down

Ross,

As you say, it is interesting to see Aussie John talking down the market, you'd expect him to be one of the drivers to continued property spending.

If he believes there is worse to come is there likely to be changes in the lending criteria that Aussie use?

Justifies the edict that you make money when you buy. With the market as it is it's even more important to ensure we are pruchasing below the present market with a reaonable buffer to protect our investments, or perhaps it's wiser to stay at the sidelines and see what happens.

Regards


Andrew
 
Hi All

I saw a promo for Symonds being interviewed. The program is on this Sunday. In the promo he was on about the purchase of multiple properties.

The show was on '9' and either the business show or the program after it.

Cheers
 
markpatric said:
It is just all the usual talk.

Right now if you can`t afford it don`t buy it, simple!, if you can and it`s longterm, go ahead.
Click to expand...

I thought there's more to it than that.

He's predicting the market ( on the eastern seaboard ) to fall a further 10 % in the next year , and says he's prepared to say it even though it could hurt his business. He's accusing other people of trying to talk the market up ( but we know they do that anyway).

See Change
 
Nothing unusual here. All investments experience cycles of growth and decline.

What is interesting is those people who say ohh i would never invest in shares or a managed fund because they could go down in value. When they do invest in these types of investments they then panic and think they have made the worst investment decision of their lives. Funny how they don't take the same attitude with property. The response I hear is well over 10 years it has been shown that property increases in value, very true, but history also shows the same of other investment classes.
 
GDay everyone,

John Symonds said that the current market is "great for first home buyers who are in a stable, solid position but no good for first home buyers whose circumstances may change."
Some of the first home buyers will be the first and hardest hit by John Howard's new Industrial Relations Reforms.
Losing overtime, penalty rates or even being made redundant for a cheaper casual or minimum wage labour force. I worry for the young school leavers trying to make a start today.

Cheers,
Crystal
 
Hi Crystal

Well, my young 'school leaver' has just bought his second investment property, and he is aged 18 years and 5 months.

A positive attitude, a willingness to spend less than he earns, and a burning desire to be financially independent by the time he is 25 is what drives him.

He will now control property worth about $330,000. Sure, his debt level is not far from that, but he walks around with a big grin on his face!

It's all in the attitude, and all in the preparation.

Nothing comes from nothing. Hard? Only if they try and take the easy way.

Cheers

Kristine
 
On channel 9 news tonight Symons was saying that the market will fall 10% and anybody with investment properties should be off loading ASAP.

heard it all before.
 
It all sounds like Bolshoi to me

I heard John Symonds on the radio this morning - and he uttered words that indicated that the "100% increase in house values is unprecedented"......

Seems he must've forgotten about the late 80's, and the early 70's, and.....

In short, Real Estate jumps up in a "stair-step" fashion. i.e. it rises quickly, then languishes for a few years (the tread of the stair) until things stabilise, then doubles again (or close to it).

Sure, it might be a few more years before Sydney "jumps" again - but, at the moment, we are in the "tread" of the stair - quite normal I would've thought...

And, during that "tread" phase, settling back a little is quite normal - so what makes THIS current phase any different? John? You out there???
 
see_change said:
Though I did notice another TLC needed property coming up for auction in your skating rink ... :cool:

See Change
Click to expand...
There are quite a few at the moment although the reserves are a bit unrealistic in some cases. :( Or maybe I am only willing to pay a lot less than they are worth. :eek:
 
coastymike said:
The response I hear is well over 10 years it has been shown that property increases in value, very true, but history also shows the same of other investment classes.
Click to expand...

Coastymike,

somehow, I'm not convinced about those "other investment classes". Maybe its because I am pro-active and choose properties that I can "add value" to , so that my equity can double in less than 12 months.
 
see_change said:
I thought there's more to it than that.

He's predicting the market ( on the eastern seaboard ) to fall a further 10 % in the next year , and says he's prepared to say it even though it could hurt his business. He's accusing other people of trying to talk the market up ( but we know they do that anyway).

See Change
Click to expand...
This guy is one of the good guys and I don`t begrudge him a cent but he has earned so much dough I doubt he worries about his next commission too much.
We could guess all day about his reasoning but he just reaffirmed what everyone else has already guessed.
What he is predicting here is not gonna make a lot of difference to the market, if any imo but one thing I am guessing is that we will see rentals rise quite a bit over the next couple of years, in which case buy now is not a bad idea!, why would investors sell when rents are expected to rise and interest rates so steady anyhow?.
 
Cloclo,

"So that my Equity can double in 12 months". Interesting how in another post you indicate that you have an $8M portfolio with a capital growth of $750K per annum. This is roughly a 9% per annum growth not anywhere near doubling your equity every 12 months.

With regards to other asset classes it has actually been shown that a portfolio of shares would have outclassed property over the last 20 years. Do a google search on shares vs property performance and you will find a range of charts and graph demonstrating this fact.

Truth is always the best option.
 
cloclo said:
Maybe its because I am pro-active and choose properties that I can "add value" to , so that my equity can double in less than 12 months.
Click to expand...
Just imagine what would happen if you were to be pro-active and use your expertise and abundant time in the share market?

Lacking both of these, and real capital, I can get good returns with some effort.

As for the "Sunday" show, it matters nought whether you agree with anything said or not. What does matter is that many will believe and that this show and those like it yet to be broadcast, will reinforce public attitude as surely as "The Block" and the other RE shows on TV strengthened the demand on the way up.

If I were heavily committed I would take John Symond's advice seriously. (I don't mean follow blindly). In markets it's OK to panic, just as long as you do it EARLY!
 
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