Is that all you had or was there more? Who said I am an investor?
I have investments. I am attracted to the rents and dividends with equal affection. 3 of the houses we own will be gifted to our kids while we are alive. The remaining properties and shares will be gifted to the kids when we are dead. Moment of internal reflection Simple?
I like your style Uncle Matty. You're investing in your future and providing for Mrs Matty and the little ones. To me, that's heroic.
The title of the chart is "Australia Real Housing Sector Indexes". That would indicate to me that the chart shows real increases, not nominal. Supporting this assumption is the way most of the values track pretty close to the starting value, indicating that they are rising in line with inflation. There is a demand shock for construction starting around the year 2000, presumably a combination of a east coast apartment boom and a west coast mining boom starting to ramp up.
At the around the same time, house prices start rising much faster than inflation. If you were to take 125 for the index value in 2000, and 250 for the index value in 2016, then house prices have been outpacing inflation by roughly 4% per year since 2000.
Do you agree with my conclusion?
Speak when you are angry and you will make the best speech you will ever regret. Ambrose Bierce
The title of the chart is "Australia Real Housing Sector Indexes". That would indicate to me that the chart shows real increases, not nominal. Supporting this assumption is the way most of the values track pretty close to the starting value, indicating that they are rising in line with inflation. There is a demand shock for construction starting around the year 2000, presumably a combination of a east coast apartment boom and a west coast mining boom starting to ramp up.
At the around the same time, house prices start rising much faster than inflation. If you were to take 125 for the index value in 2000, and 250 for the index value in 2016, then house prices have been outpacing inflation by roughly 4% per year since 2000.
Do you agree with my conclusion?
Perth is heading south it appears.
Debt ratios will increase as values drop.
Anyone on 10% deposits is already gone or close to, then the job loss, catastrophic financially.
Peter
I know a young couple that bought a balltearingly over priced 1 bedroom unit in East Perth, now they are sitting on a $100,000 loss, jobs are wobbly after Christmas. and are underwater.
They will just have to go bankrupt and put it down to experience.
They worked for 5 years to get the deposit, and watched as the property prices went up faster than they could save.
Another friend almost bought, she had a deposit, I said please don't put you head in the noose, you are my friend I don't want to see you get hurt and I am selling now, why would you buy. She did not buy and now can not believe the outcomes she is seeing with her friends.
She did not buy and now can not believe the outcomes she is seeing with her friends.
Good money being torn up.
It's how profit is made.
Someone expends time and energy to earn currency, someone else takes it away from them.
The object of the game is to take out more than you put in.
Imbalances are leveled out with debt.
So far, I have been lucky. I have taken out more than I have put in.
I have no debt.
I am in profit.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
So you think an investor with 500k in equity isn't in profit?
Link?
Gold was doing really well a few weeks back. I never considered myself to be in profit because I didn't sell.
If you pay 30 cents for the ingredients to make a loaf which you will sell for $2.50, when do you make the $2.20 profit?
A. When you buy the ingredients?
B. When you've made the loaf?
C. When you sell the loaf for $2.50?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
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