The best time to buy a PPOR is when you have steady jobs, a good deposit and a good idea of where you want to live. The rest of the chatter is just taking gambles on whether the market will rise or fall over a given period of time. The chances are very good that prices will rise over the long term if you are living in a city with a growing population.
In my life I have seen both sides, I have missed out and I have seen lots of capital growth. My logic that I use today is that I can always wait out a downturn but I can never catch up a market that rises quickly.
Hi Skamy,
The key to this game is there is really no "market" as such.
But a large number of deals.
Those deals make up the market.
Not the market makes up the deals.
Although sometimes, maybe 5 times in my life the "market" has influenced the "deals" thats when i make the money, they haul me out of the sauna, extract me from the full body oil massage table and off the croquet field to do the deal.
I spent 25 years in a drug (prescription) and alcohol fuelled haze.
I am clean now. 3 years.
i have only worked a few years out of my 50.
You just got to keep improving.
Following the herd just means you end up in the slaughter house.
Skamy, would you buy right now if your situation matched the position outlined in the op?
I value your take on things, so please answer honestly. I know you're an optimist, but I believe you can be quite level headed if you choose to.
IMHO, all Australian markets are good at the moment (maybe Melbourne is a little worry but that is a market I don't quite get).
Even Sydney has median prices not that much higher than they were in 2007 and there has been huge population growth since then. For 3 years Sydney grew by 20% at the turn of the century. My feeling is that within the near future prices will climb, that is just based on my own experience of what has happened after the past two downturns I have lived through.
I am scarred by that beach front house in Tamarama that was within our reach in 1991, and completely out of reach by the end of the decade when we finally decided to buy in Australia.
The bears will laugh at this, I am sure, but in my lifetime house prices in growing cities (London, Sydney etc) always get back to averaging a price doubling in 7 - 10 years. So far I have been able to judge the market pretty well if I look where we are on that scale. If a market has already doubled over 7 years, that is when it is time for a bit of caution. Anyhow, that is this old biddy's take on the market.
So the answer is yes I would buy and I have put my money where my mouth is in Perth for ourselves and for my daughter.
I have done my buying and selling for a while now and everything I hold is for at least 10 years.
BTW thank you for being so polite
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.
Although sometimes, maybe 5 times in my life the "market" has influenced the "deals" thats when i make the money, they haul me out of the sauna, extract me from the full body oil massage table and off the croquet field to do the deal.
I spent 25 years in a drug (prescription) and alcohol fuelled haze.
I am clean now. 3 years.
i have only worked a few years out of my 50.
You just got to keep improving.
Following the herd just means you end up in the slaughter house.
Slow and steady does win the race, but remember the "race" is made up of many "races" just like the human race.
Good luck.
Peter
Good on you Peter.
I used to put await a few myself, but it was under control as I only drank on days beginning with T, Tuesday, Thursday, Today, Tomorrow.
7 years ODAAT
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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