More to the question is when will the bulls buy more houses.
I have done most of my buying of growth assets and have just committed to a major renovation that will cots more than half of my PPR's current value.
Will let that run its course and maybe after a few years I will utilise the equity growth across my portfolio to do a 6 townhouse development on a block that I have in a regional town.
Overall though I have acquired my growth assets and any future investments will be for cash flow as I reach the dash for cash phase of the investment life cycle.
Overall though I have acquired my growth assets and any future investments will be for cash flow as I reach the dash for cash phase of the investment life cycle.
I'm in much the same boat. At almost 40 years old I'm past the acquisition stage and into the consolidation and debt reduction stage.
I have done most of my buying of growth assets and have just committed to a major renovation that will cots more than half of my PPR's current value.
Will let that run its course and maybe after a few years I will utilise the equity growth across my portfolio to do a 6 townhouse development on a block that I have in a regional town.
Overall though I have acquired my growth assets and any future investments will be for cash flow as I reach the dash for cash phase of the investment life cycle.
Interesting. I am at the same stage as you are. I have finished buying for the forseeable and now have a 2-year plan to increase the yield on all my assets through renovations. Basically, if I can spend $1k and get $3/week more rent out of it, it will be done. Otherwise not.
But I have a couple of IP's worth of liquid assets sitting by just in case the govt goes insane and changes the NG rules. The chaos that ensues will throw up many opportunities for a while.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Keen is a fool, always has been, if he thinks it will take that long .
It will hit, then it will last 15-20 years, its been six already overseas and we are about six years being there crash thanks to our 100 year mining boom.
But we are catching up fast now, with our unemployment catching up fast.
But with jobs falling, wages falling and rents falling , it will be sooner rather than later.
Foolish man he is.
But the bulls can keep on denying, just like all the other bulls around the world, who said that prices could not crash......right before they crashed.......who said there was no bubble....right before it popped They all thought this phoney economy was REAL .
I think anybody who thinks there wont be a crash is a gulliable fool unable to see through the bullshit, just like all the bull sheep overseas too. They were unable to see the real direction of the economy of where cheap foreign labour would place them.
So I would not go listening to anything keen says, he is an idiot. But he was able to see the overall direction the economy would head, so he's probably not as stupid as the bulls , who had no idea at all regarding the economy and have talked it up continually when it has been declining on a level not seen before.
Is that you MMM?/ teddy ...
Well, buying property has usually been the safest bet over the long term, there's of course times when house prices have fallen in oz & yes it goes up & down ..up & down or does bugger all with stagnation.
Surely, over the life of an average mortgage , it would be hard to find that the majority of people have negative equity in their homes. The same is evident with investors who invest for the LONG TERM.
I understand that the economy built on vast easy access of credit can produce some falsehoods ..however, there's been grave errors of by people calling the bottom, it's not always accurate no matter what's spruiked by the paid analysts .
The bottom is gonna be reached when I think the bulk of leverage is weeded out by oz companies. The surviving companies will be capable of getting by without leverage & making profits from the assets they own..
We are in a country that relies on banking, mining & housing .
The govt wants to protect housing but there's the following issues that cause rocky stuff.. 1.unemployment 2.IR 3. Availability of capital They can be bearish for the r/e...but a crash nah... I'm not expecting flash re prices, the waters getting cool out there.
Just remember, the masses don't know what they're doing why do you think they get called "sheeple".
I prefer to read a bit on Jenman, oz he does raise people's awareness of twhat happens in the re sector but of course just like the rest of us he can't predict with full certainty how exactly the property market will b like. The big picture
Is that the govt & central banks will continue to aim for possitve inflation & encourage people to take on debt & the prices of real assets go up over time
That's the way the cookie crumbles.
A market correction won't be allowed to happen, simple as that.
I do think there's dodgy house stats, & one can get truly fruity with what's out there it's shameful really so I choose to ignore some of it. It's not enough that the market needs some buyers, they need enough to create the demand to support high prices and a greater number to drive them higher.
The problem is, unlike shares, there is no ASX, no regulations, nothing that will reliable AND SIMPLY provide stats... rPData & REI has umm agendas. There really needs something set up.
Ex BP Golly
22 Aug 2014, 01:18 PM
It is that low level thinking that is our Black Swan
Honey dummy..
The govt will do its best to support house prices & the stimulus $$ will keep flowing.
Debt in itself is not a bad thing if managed correctly by people, where they plan for if crap happens & IR changes. The problem is when you over extend over do what you can realistically afford.
Greed can be a mix of good .. ( to improve one self) & bad( if you don't know the limits.)
stinkbug
22 Aug 2014, 10:34 AM
I'm in much the same boat. At almost 40 years old I'm past the acquisition stage and into the consolidation and debt reduction stage.
You have done very well for yourself.. & you didn't have any family support.
I know you mentioned you were mentored by those who have been there & had sound strategies & of course put their money where their mouth is & are wealthy.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Your problem, like many Blondie, is that you are unable to see the bigger picture here.
What you don't seem to understand is this GFC that surfaced in 2008, is the result of many decades of borrowing money and overspending and where the whole western world has used evry measure possible to pump house prices to keep their gravy train rolling through all the taxes they get with it.
This is just the great depression all over again but on a much greater scale, and only covering up the real extent of the decline with more debt and zero interest rates, another temporary measure. This whole GFC is because western governments have been pumping this ponzi for decades , but its now at a point where they have exhausted peoples ability to borrow anymore and at the same time have been destroying their means of repaying it through job losses and fslling wages.
What you and all the other dopes on here including bears don't seem to discuss or mention or understand, or very few of you , even though I've rammed it down your throats for years, is the threat to our wages and jobs from cheap asian labour, not to mention modern technology.
At least you have the guts to answer some of my questions blondie, unlike most bulls who run with their tail between their legs and ignore it like a dope, but will jibber shit about nothing all day long.
So I will ask you this blondie, apart from the mining boom and obviuos job losses we are seeing, and discarding this for a moment , what about many of our other jobs, do you see both cheap asian labour and modern technology as a major threat to our economy ? Anybody else ?
Why do you think we are losing many of our jobs to overseas Blondie, do you think its because our wages are unable to compete anymore ?
This is the other problem, when we were in this mess last time, in the 1930s, and on a much grander scale now to back then, we did not have the threat of dirt cheap asain labour back in the thirties, but this is the problem we face moving forward this time.
So I will conclude for you, The GFC has surfaced because debt levels and borrowing got to an exhausted level , from govts using many measures over decades to pump house prices . This is the exact same reason the great depression surfaced. And the other fact is, the dopes in control learned NOTHING at all from the last great depression.
Can you not see and understand that what is going on around the world is not a normal part of the cycle that we are used to, and is nothing at all like we have experienced in our lifetimes Blondie.
I know your blonde and not stupid, and your about the only bull with enough guts to answer some of the harder questions Blondie. I certainly have a lot more respect for you than any other bulls. You don't lie like many of the others do and you don't run away from we of the harder questions for bulls, when most just ignore it and hope it goes away.
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