What does the past tell us our market will do ?

[josko]

Hi Jo .

No nothing to do with greed , it's not in my nature and I have no such luxury I'm afraid but way too complicated. Although I see how it sounded that way .

The 3rd is a very much needed roof over our heads and after a damn lot of sacrificing and a very rough time but , what happens if in 6 or 12 mths time you have paid too much and it 's only worth 1/2 but you can't cover the difference .

Will banks expect 2/3 of the country to just rip that kind of money out of a hat to cover , or do we all end up American 08 ?

Cheers

Hi Blaster,

If you need a roof over your heads and are planning to keep this new property for a very long time.. . a downturn in it's price will not matter as it will eventually rise again.

I cannot see how you will pay 50% too much for your property. Houses will not go from 400k to 200k.....well gee that would be great for investors buying now - but nevertheless, wishful thinking!

I don't understand what you mean by :

you can't cover the difference .

You don't need to cover the difference in equity. (The lessor value of your property.) You DO need to make sure you can cover your payments and allow for interest rates to rise again.

I must be misunderstanding you, becasue I would think that someone who has two properties and is wanting a third would understand this?

Regards JO

 

[blaster]

Hi Jo.

But mate a lot of people are saying the 400 could well end up 200 . The 400 is still 6 or 7 x the average wage after all .
They were saying that about the stock market too but there was no way then either, now look at it so I wouldn't count anything out myself.
I was trading and making money on some stocks 15 mths ago at 4 times what they are now , some 2 yrs ago at 5 times .

But you missed what what I'm saying Jo , mate there could very well be no equity in 12 mths time at whatever you paid now or last year!
Allot of Australian property could wind up 30 or 40% in the negative maybe more in some cases.

Rio looked like a bargain at 120 only14 mths ago.

Ahwell.
Cheers

 

[BoatBoy]

Rio looked like a bargain at 120 only14 mths ago.

I cant sleep in a mine

Dave

 

[evand]

But you SURE can pay for something to sleep in with the money you make from RIO.

I cant sleep in a mine

Dave

 

[Nathan]

I was hoping the quality would start to come back into the building industry with more tradies looking for work.

that pic looks like some of the extensions i have seen out on the tracks...

 

[yorke]

Hi Jo.

But mate a lot of people are saying the 400 could well end up 200 .

Dreamers, the lot of them. Even if the land prices halved it costs 200K+ just to replace the building. I do hope these people wait for 400 to end up 200, the more renters around the more we can charge them. If history is going to repeat itself in less then 30 years these people will be paying 200 p.a to rent it of me.

 

[yorke]

BB do you know the three F's of investing ? My bank manager told me this one. If it floats, flies or f@rnicates... rent it.... don't buy it

If he's so smart why does he have to work for a living ?
Renting only makes sense if its tax deductible.

 

[blaster]

It'd be really nice if your right Yorke , I'll drink t that.

Cheers