In all seriousness this time, I think it's a losing strategy to try to time the market and play silly buggers unless there is already a significant market movement underway. Far better to get your personal finances under control, save, buy when you can and pay off as quick as you can. That way you'll always end up with more options, and you'll get to a point where you own outright and the major costs of ownership simply evaporate.
This works for investing too. Find something well priced with a clear upgrade path with a decent yield and in the long term you will do well.
You should have listened harder, you should have bought gold way back then and you would have made enough profit to cover the difference.
I'd have needed to buy half a million dollars worth of gold, and got my timing with it spot on to make that strategy work. Sadly, I didn't and still don't have a spare half mil burning a hole in my pocket!
O I didn't realize your plan was to buy outright in syd. I thought you were going to do it in the usual way and had a deposit but now the homes in your area got beyond that. That was my meaning. If you had put the deposit into gold back at $500 it would have tripled your deposit by now. Sorry about that, perhaps you'll do better in your next life.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
If you had put the deposit into gold back at $500 it would have tripled your deposit by now.
Yes - if he had a time machine and could travel back in time 13+ years to say 2001 (or in fact pretty much anytime back to about the early 80s!!!), with the deposit he had saved by 2011/2012, then sure, maybe he could have invested in gold @ AU$500 and have made a bit of dosh..... Just as well he didn't follow your advice in 2011/2012 though! You know - when gold was trading at AU$1700/$1800 an oz (20-30% higher than it's current value).
My tips for saving money — sell your car. Use public transport instead. For the odd tricky destination, engage a taxi driver or hire a car. That's infrequent, and you'll still be well ahead. Stop travelling overseas — that's an indulgence for the truly well-off. Don't buy takeaway coffees, just get a spice grinder, grind your own beans and brew them in a plunger. Avoid cafes and restaurants. Try to cook one-pot dishes at home where you get plenty of freezer-friendly portions. You don't need to eat out to enjoy the pleasures of food if you gain some skill in the kitchen. Watch cooking videos and you can get better than many chefs. For your wine consumption, buy cleanskins — you can get a nice drop sometimes for as little as $5. Grow your own herbs, very handy for when you only need a tablespoon or two of something.
Or make your money work for you, and enjoy all the things you deny yourself. Rather than live frugally.
"Stop travelling overseas — that's an indulgence for the truly well-off. " WTF!! Maybe if you are the lazy type and just pay the travel agent to put you on a cookie cutter tour group where you spend more time being taken to souvenir shops than visiting locations.
It costs less now to travel anywhere than it ever has every before. High Aussie dollar, cheaper flights, cheaper accomodation, and many website where you can find good travel deals.
If you buy property within your means (and not expect the $800k first home), then you can have the best of both worlds.
Discarded pizza boxes are an excellent source of free cheese.
You wont find any free cheese on the (exceptionally rare) discarded pizza boxes coming out of my house - Just the fingernail scratch marks where it's been picked off ...
Re the OP, rough guestimate, but I reckon personally I've saved about $230K since the GFC hit.
So while I'm possibly behind on if I'd bought using debt (dunno really? - would have to crunch the numbers), I suspect it wouldn't be by too much?
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
I was a bear saying 'surely prices will come down soon'? We saved $160k renting cheap..So we bought having realised its supply and demand in the big cities with More people coming into the country each year on top Of the Chinese buyers and people accessing the super funds. It's clear even though it may slow down/stagnate prices will still keep Increasing. My wife wants to buy an investment 1 bedder, so that's the next plan - if You ant beat them Join them!!
It's clear even though it may slow down/stagnate prices will still keep Increasing.
No they won't necessarily. Sydney may have maybe +2-3% left this year maybe, but that's it for this cyclic boom. No different to the 2003 frenzy.
The property cycles have times where prices fall as well. Don't BS that prices always go up. In a 7-10yrs period, yes, but within 2-3yr timelines, prices can correct and fall, go sideways for 5yrs, and then have a 2-3yr big boom. Anyone who tells you otherwise is a spruiker. People who understand property know that prices can come down as well, and we manage those risks, and diversify to other markets around the country, and hold to max 70% LVR's.
The mid-2013 to early 2014 15% price spike was purely driven by the latecomers into the market (such as the op) who think they have missed out, and are prepared to pay any price to get in. Not fundamentals. 20% increase since the start if 2013 is not healthy (but that's what happens in a market frenzy at the end of a boom). Like the 2003 boom, prices can and will correct in Sydney 2015-2017 (as interest rates increase). Just a normal cycle that overshoots, and then falls back to balance. I believe a drop of 15-20% by 2018, or back to 2012 prices is balance. (or all the market frenzy gains of the last 15mths). This is why investors are looking to other parts of the country for the time being.
The mid-2013 to early 2014 15% price spike was purely driven by the latecomers into the market (such as the op) who think they have missed out, and are prepared to pay any price to get in. Not fundamentals.
So nothing to do with investors?
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
Some dumb investors too. Most informed investors stopped looking in Sydney in around mid-2013 and started looking in the Central Coast. We did at the time, and all the agents were saying there was a LOT more activity and enquiries from Sydney.
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