Wife went shopping at North Perth Plaza here in Perth and said about 50% of the cars in the car park were BMWs/Mercs/Audis and the majority of those SUVs.
I shudder the thought when rates start to rise.
When self doubt creeps in
- Thread starter devo76
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Wife went shopping at North Perth Plaza here in Perth and said about 50% of the cars in the car park were BMWs/Mercs/Audis and the majority of those SUVs.
I shudder the thought when rates start to rise.
Seeing as car loans are fixed rates it won't make any??
True, but one would assume they also have a hefty mortgage...
Quite right.
It's called "I'm gunna flog the hell outta those Joneses".
The reality is that as the income level goes up, so do the toys and PPoR postcode; but not paid for with cash - it takes too long to save the dough for such toys.
Human nature.
But, only a small % living in the Jones houses are actually Bill Gates.
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You forget all those glossy adds a few years back.........Equity Maaaate.
Guaranteed that's how the majority are "bought" or on lease plans through their hubby's job that might be gone next week.
Mate, in a similar situation...after 10 years of buying a total of 7 properties for over $1.2m (6 IPs) and selling 4 in the process and with the market going backwards, I'm back at present day with about $3,000 in the bank and holding onto my 3 properties with nearly no equity gain at all...whereas looking back I could have just bought the first cheap unit and done nothing else, and today I'd have it paid off and it be worth at least $160,000!
But, I feel proud in the fact that I've reached the summit of having over $1m in property and seen the "view" and it's fantastic (none of my mates or any of my family or relations have done that)...and sure I've made lots of mistakes along the way, but I now know "what NOT to do" and I'm on my way back to the "promised land" you could say!!
I've been gutsy to take the risks & go against the grain that 99% of the people out there aren't prepared to do...sure your subdivision didn't work out, but don't stop you doing another as the 2nd one may make you lots of $$$
Remember, making mistakes is part of the journey to getting where you want to go...it's hard I know (I really do), but you've got to keep going (like you, I now have a valuable amount of knowledge of what worked, what didn't and how to take to next steps)...all the best!
Hi Tim,
I'm not sure why you are selling, but did your portfolio have some equity in it before you sold?
Regards Jason.
Yes, I'm an eternal optimist but also a realist.
When China says "no more thankyou", and a high number of the newly arrived return back to whence they came, there's going to be a drama or two.
I'm completely puzzled by this post.
Having learnt the hard way - property investing is boring - and so it should be - choose a good property - purchase - sit back and don't fiddle.
I tried the glitz and glam path and did very well thank you - until I got caught in the 2004 bust and was badly stung ... if I'd bought boring old, stock standard, joe blow units back when I was trying to be fancy pants I'd now be retired on a very comfortable income.
Perhaps you need to set yourself a goal - "by the age of XX I want to own YY properties so that when I ride the next wave (sometime in my lifetime) I can sell ZZ and own XYZ ouright - bringing in an income of $$$"
I tried the glitz and glam path and did very well thank you - until I got caught in the 2004 bust and was badly stung ... if I'd bought boring old, stock standard, joe blow units back when I was trying to be fancy pants I'd now be retired on a very comfortable income.
Perhaps you need to set yourself a goal - "by the age of XX I want to own YY properties so that when I ride the next wave (sometime in my lifetime) I can sell ZZ and own XYZ ouright - bringing in an income of $$$"
It was the same in Iceland when I was there in 2005. People who belonged to the herd thought the boom would never end. Today, Iceland is a much humbler place
Property is a great investment if bought cheaply. But people who think they can buy at the median price and expect their investment to double every seven years like clockwork have another thing coming.
I have invested the bulk of my income in property for over 40 years. I look at Perth prices today and shudder.....some of the irrational exuberance I see is going to end in tears.
That wouldve been a pretty bad strategy in WA for the last 5 years or so...
Negatively geared, prices going backwards, brilliant value adding opportunities being ignored etc
perhaps I shud've included .... minor reno ... and the "don't fiddle" means don't sell ... the secret is the first line ... select a good property.
Personally I like neutral geared from the start - that becomes pos in very short period of time.
You should always seek to buy a good property but should do so not immediately after a boom.
You should be aware of the property market cycles. It was never going to be a good idea to buy in Sydney after 2003-04, Ditto for Perth in 2005-06 and Melbourne 2009-10.
Cheers,
Oracle.
Yes, Perth is a rare case in Aus as the growth is clearly and strongly linked ot one event, the mining boom.
VIC, NSW and QLD have more diversified income AKA demand sources.
Peter 14.7
Very true - maybe I've been in this game to long and didn't explain it enough for a beginner ... a good property is one under value, where you can add value/rent by a quick reno, in a strong location etc
How do you feel about sydney prices?
Devo I think it is normal to have some doubts on the long term when you have small children. It's like there's a rush to make good money along with the desire to spend more time with them and less at work when they are small.
You are on the right track to have a good retirement. Once your days of having kids have passed and you have more income to buy again you'll make some good property choices and feel confident again.
You are on the right track to have a good retirement. Once your days of having kids have passed and you have more income to buy again you'll make some good property choices and feel confident again.
fair enough, i thought dont fiddle = set and forget, im personally not a big fan of them but especially so in the last 5 years in perth.
completely basic retain and subdivides were showing 25% profit margins, vast majority of buy and holds were significantly negatively geared, many ppl have lost money the last few years in perth just buying something to rent out with no value add potential either now or down the track. some of those losses are being regained now though
Im not sure if youre being serious here or joking?
