will house prices continue to double every ten years?
- Thread starter keneth
- Start date
Why are you even here? To help us all see the light, and save us from ourselves? Thanks for the concern, but I'm happy doing what I'm doing.
Yes it has ,, housing is already way over priced people are allocating a large amount of there weekly income to loan repayments. Do you think wages will double in 7 years
Exactly........wages ain't going nowhere. Same as rents.
Deflation people.......remember that word, and understand it's meaning. It doesn't mean the "decrease in prices" as many people think. It's meaning is something a little different.
What is the difference between the two?
I buy properties and mostly hold onto them. Is that an investor or a speculator?
Hmm...good point, I would say you are generally an investor unless you bought specifically to sell on for a quick capital gain, then you would be speculating on a price rise. ??
was going to comment, but couldn't get past the thought that this thread needs to be attached to "how to annoy ... ".
don't you love it when naive newbies come in and declare they are the true harbringers of doom and gospel - and continue to argue against those who have decades of coal face experience, cash in their pockets from such and dare to contridict them.
personally - 12 years ago started with zilch. thanks to real estate we are now multi-mils. current property that is being fought over by buyers will make us over $100k net profit for 6 months of part time work.
no further comment required.
don't you love it when naive newbies come in and declare they are the true harbringers of doom and gospel - and continue to argue against those who have decades of coal face experience, cash in their pockets from such and dare to contridict them.
personally - 12 years ago started with zilch. thanks to real estate we are now multi-mils. current property that is being fought over by buyers will make us over $100k net profit for 6 months of part time work.
no further comment required.
YES, this was precisely my recent comment in that 'How to annoy...' thread, which got taken out of context. This is what I was referring to, and yes it does annoy me.
Let them stick with their doom and gloom, they can continue to put their money in their warddrobe where it is 'safe'. I'm happy to 'risk' mine and invest and hopefully retire well before 65.
Tell us about your investments.
Have you followed your own model? Have you bought for CF only? How did that work out?
Hi Lizzie, and well done.
I have to say though that unless you have witnessed a severe downturn in a property market, you are all newbies to me.
And considering the track record of Australian property over the last thirty years, courtesy of government intervention, I don't suppose there are many here who can truly appreciate the possible downside. We are all geniuses in a rising market after all, its how you cope with a falling market that counts however.
I have honestly seen more paper millionaires wiped out through property than any other business unfortunately, including a goodly amount of colleagues twenty of so years ago in the UK.
I have also seen a lot of people get very rich out of property, sometimes due to more luck than judgement, but usually through good old hard work.
It worries me deeply when people say property never goes down, there are a few basic laws that can be bent for a while, but they apply eventually all around the world.
So Yarrahboy (or are you Mick691 at the moment),
What do you think the sceptics were saying in 1965 or 1975 or 1985 or 1995?
I guess they would have been saying "wow, what an increase in property price we have just witnessed. How on earth can this continue?"
I hate to think anyone would have paid them any attention.......
What do you think the sceptics were saying in 1965 or 1975 or 1985 or 1995?
I guess they would have been saying "wow, what an increase in property price we have just witnessed. How on earth can this continue?"
I hate to think anyone would have paid them any attention.......
I have to say though that unless you have witnessed a severe downturn in a property market, you are all newbies to me.
Just how old are you???
And considering the track record of Australian property over the last thirty years, courtesy of government intervention, I don't suppose there are many here who can truly appreciate the possible downside. We are all geniuses in a rising market after all, its how you cope with a falling market that counts however.
Through hard work, we have had a hand in rental IPs for over 30 years (I am 50). I have seen markets fall slightly, track sideways for longish periods, and rise. Luckily for me, even if prices crash, we have made some good profits and could probably manage to hold on. Younger investers may not have that growth, but if they can hold on, prices would probably rise again, just as they have for a long time. If not, then there will be many, many people in a lot of bother, including those who don't hold property.
It worries me deeply when people say property never goes down, there are a few basic laws that can be bent for a while, but they apply eventually all around the world.
I don't think you will find many on here who say "property never goes down".
Well done on your success.
Some people prefer to take risks, and if things go there way, wreak the benefits.
I, however, am a much more conservative investor. That's why I will never be truly 'wealthy'. Well off maybe.......but not wealthy.
Word of warning though....circumstances change, and passed success does not guarantee future success.
Pay off your debts if you have any, and wait on the sidelines for the next couple of years.....deflation is coming, and cash will be king !!
I kind of think that's the jist of the graph above, though were never quite sure if we are talking nominal terms or real terms.
After all, saying 'property always goes up' can be the same as saying 'the value of money always goes down', in which case its a bit pointles.
Alas you have me beat by one year!
, the point I was trying to make about newbies wasn't really about age, but rather the bitter truth of property crashes, and I think your post underlines my 30yr point. Australia hasn't had a severe crash recently, and who knows, maybe it never will.On the other hand there are many indications pointing to a possible speculative asset bubble, rental returns being the most obvious in my view. This should be of no concern to the likes of yourself, a long term owner, however, to the 'newly in', or deeply leveraged, it should at least be on the radar. No point ignoring these possibilities.
Does the fact that Australia has not had any recent drops make the likelyhood of one soon any more, or less likely? I don't know.
I think in the current global climate it is at least a possibility worth considering. My experience has been that after strong growth, pullbacks can be severe, and overcorrection is always possible. Never seen a 'soft landing' yet, but then again never seen a market with so much government intervntion yet either, and that doesn't make me comfortable.
So people that bought their properties after the boom in 2003 should be seeing their properties double in value soon if not already doubled because it has been 7 years..
So Yarrahboy (or are you Mick691 at the moment),
What do you think the sceptics were saying in 1965 or 1975 or 1985 or 1995?
I guess they would have been saying "wow, what an increase in property price we have just witnessed. How on earth can this continue?"
I hate to think anyone would have paid them any attention.......
So Yarrahboy (or are you Mick691 at the moment),
What do you think the sceptics were saying in 1965 or 1975 or 1985 or 1995?
I guess they would have been saying "wow, what an increase in property price we have just witnessed. How on earth can this continue?"
I hate to think anyone would have paid them any attention.......
That graph is simply SCARY..........
Always has been, mate.
Not in the passed few years. Cash didn't mean much. Was inquiring a couple of years back about a property in my area. Told the agent, "I have X amount in cash". The agents more or less told me "who cares? When it goes to auction it will get a good price, and the bank will loan the money anyway".
