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Property investors who bought when everyone else was running away are now reaping the rewards
Topic Started: 25 Aug 2014, 06:15 PM (3,752 Views)
Mike
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van
25 Aug 2014, 08:25 PM
I didn't think property prices would have gone up after the GFC as I did not expect the RBA and Government to double down on all the mistakes of the past that caused the GFC.

Two ways to look at it.....property prices falling because there is too much debt or property prices falling because there is not enough debt. RBA and Government will always take the latter view.



Our Government or RBA did not cause the GFC. Australia did not have the problem with subprime loans that the US had. Australian regulations of banks and lending is more heavily regulated then the US. Australian interest rates had been increasing and started from a higher rate then the US.

So what mistakes are you refering, as our Government and RBA did not make them hence why we had no property crash or recession in this Nation.

Debt dose not cause a financial crisis. It is lending Debt to people who have no hope of repaying then selling that debt of as tipple AAA rated investments around the world.

Tell me, what mistakes the RBA and Government made?

Should the RBA and Government have let unemployment rise so much to force a million people out of work so you could buy a house cheaper. Should the RBA raise interest rates while the world economy shrinks due to you wanting a cheaper house.

Guess what, despite the RBA and Government efforts you had an opportunity to buy houses at cheaper prices during the GFC, some did many did not.

You missed the boat, which is your own fault no one elses. You panicked like the herd, those of us who held our nerve and took the opportunity to buy have now reaped the rewards. That is jut how investment goes, calculated risk.
http://mike-globaleconomy.blogspot.com.au/
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Maz
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Chris
25 Aug 2014, 07:15 PM
Surely there are more credible thought provoking articles that can be posted Alex. Or is this considered paid advertising, if so I might of just out more traffic to this bloke by pasting the company.
All that matters in the digital age is how much discussion ensues and how many hits are generated. The more controversial the better I suppose, bearish or spruikish, it doesn't matter as long as it gets the rabble roused. In that respect, a successful thread?
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Mike
25 Aug 2014, 10:17 PM
Our Government or RBA did not cause the GFC. Australia did not have the problem with subprime loans that the US had. Australian regulations of banks and lending is more heavily regulated then the US. Australian interest rates had been increasing and started from a higher rate then the US.

So what mistakes are you refering, as our Government and RBA did not make them hence why we had no property crash or recession in this Nation.

Debt dose not cause a financial crisis. It is lending Debt to people who have no hope of repaying then selling that debt of as tipple AAA rated investments around the world.

Tell me, what mistakes the RBA and Government made?

Should the RBA and Government have let unemployment rise so much to force a million people out of work so you could buy a house cheaper. Should the RBA raise interest rates while the world economy shrinks due to you wanting a cheaper house.

Guess what, despite the RBA and Government efforts you had an opportunity to buy houses at cheaper prices during the GFC, some did many did not.

You missed the boat, which is your own fault no one elses. You panicked like the herd, those of us who held our nerve and took the opportunity to buy have now reaped the rewards. That is jut how investment goes, calculated risk.
We have 100% loans and also 105% loans, exactly the same as the US.

Debt is the exact cause of the GFC, what was that

The only reason we were not affected like they were in 2008 , is we were hiring in reord numbers as they were putting off people in record numbers, but thsts all changed now, as much as you want to sit there and deny it.
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skamy
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SittingOnDeFence
25 Aug 2014, 09:42 PM
What about property investors who bought after seeing a stall in their local shopping centre, or getting a leaflet handed to them on the street?
You seriously believe people would do that?

IMHO that is such an arrogant stupid appraisal of how the average investor operates. Many are the same people who are taking out all the selective high school places for their kids, now that I have mentioned it you know I am correct hey?

The gold buyers were the idiots, the property investors were the wise ones, as always.


RealEstateAgent
25 Aug 2014, 09:55 PM


You have been warned.

And
IMHO you have been very stupid indeed.

Property is a good long term investment- it is just stupid to sell everything on a gamble and a speculation
Edited by skamy, 26 Aug 2014, 03:41 AM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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goldbug
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Property is a good long term investment, how would know until you held it for a long time spammy? You have to trust other people's word on it don't you, and their projections. But who are these other people? 9 times out of 10 they are the ones making a direct profit from your investment.

I doubt 1 in 1000 bulls on property would have bothered seeking out a few elderly landlords to get their honest take on it, I have and what they all do is bitch about the low yield on their worn out old homes, the maintenance costs, taxes incurred if they sell and the free government handouts they don't qualify for because of the property they own.

And that folks, is after 40 years of booming house prices. What do think you are in for in the next 40? Not pretty when you look at the big picture around the world is it.
Rent controls
Falling prices
Land taxes
Impoverished tennants screwing you over
Higher maintenance costs
Competition from everyone with a granny flat or a few spare rooms to rent out.

I think that last point may become a real elephant too. Many retiring baby boomers have large incomes now but small super funds and as austerity begins to bite hard they will rent out a few spare rooms. Why not, they are the generation that invented share houses in the first place.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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stinkbug
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The elderly landlords I know do not say this at all. One of my key mentors owns over a hundred properties, and his advice has always been to buy when prices are good, make lots of lowball offers (some will work), and to hold for multiple cycles. He used to buy, hold, sell, but now buys, holds and redevelops. He only sells properties off the plan as he redevelops. He makes many hundreds of thousands of dollar a year from rent and periodically sells off some property he has redeveloped as a bonus.

His key advice has always been to buy good value property and do reno/development as needed to get it cashflow positive, then let it run and pay itself off. You can decide later whether to redevelop or keep holding.

His strategy takes a long time to work well (ie 15 years plus before you get really meaningful results), but is low risk and works quite well. It's also boring and not what the extremists (bear or bull) really want to hear about.

EDIT: This mentor I refer to is in his late 70s.
Edited by stinkbug, 26 Aug 2014, 09:17 AM.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Frank Castle
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Business As Usual

stinkbug
26 Aug 2014, 09:17 AM
The elderly landlords I know do not say this at all. One of my key mentors owns over a hundred properties, and his advice has always been to buy when prices are good, make lots of lowball offers (some will work), and to hold for multiple cycles. He used to buy, hold, sell, but now buys, holds and redevelops. He only sells properties off the plan as he redevelops. He makes many hundreds of thousands of dollar a year from rent and periodically sells off some property he has redeveloped as a bonus.

His key advice has always been to buy good value property and do reno/development as needed to get it cashflow positive, then let it run and pay itself off. You can decide later whether to redevelop or keep holding.

His strategy takes a long time to work well (ie 15 years plus before you get really meaningful results), but is low risk and works quite well. It's also boring and not what the extremists (bear or bull) really want to hear about.

EDIT: This mentor I refer to is in his late 70s.
+1000

A guy I get a lot of info from holds over a hundred as well. He also owns the RE agency that rents them.
He has been in the game for over 50 years and is raking it in.

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stinkbug
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Frank Castle
26 Aug 2014, 09:25 AM

He has been in the game for over 50 years and is raking it in.
That's the key thing - be in the game making gradual gains over a long period of time. Compounding is a very powerful thing.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Frank Castle
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Business As Usual

stinkbug
26 Aug 2014, 09:28 AM
That's the key thing - be in the game making gradual gains over a long period of time. Compounding is a very powerful thing.
And when he starts getting out I will take notice.
Currently, he is still buying the same sort of sites I usually target.
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But you dopez don't seem to realize or understand that this downturn we are in is like nothing we have seen or experienced over the last fifty years or within your mentors 70 years stinky.

This is the great depression all over on a scale that dwarfs the great depression and for the last six years they have bden trying to aviod total collapze by jamming ratez at zero for six years and pumping 10 trillion in fake money in over the same time.

The cover up that is still going strong six years on.

You 70 year old mentor never saw zero rates or the bullshit the sorld is goimg through now.

Why do you people sit like dopes and just ignore the most obviuos.

On top of the bullshit we face, we now have to deal with dirt cheap asain labour on top of this.

You clowns look so stupid discarding the reality ALL around you. :wak:
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