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Oz bubble goes mainstream; Kochie tells it like it is
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Topic Started: 7 May 2012, 11:20 PM (2,153 Views)
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themoops
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7 May 2012, 11:20 PM
Post #1
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SQM Research shows house prices are falling right across the country as the market digests a glut of more than 360,000 properties up for sale.
On top of that, Australians are unwilling to increase their debt while the banks are reluctant to expand their lending.
It all paints a pretty bleak picture for sellers who need to adjust their thinking and tactics to optimise their chances of a sale. Selling in tough times needs a different mindset.
http://www.news.com.au/money/david-and-libby-koch/beat-deflating-property-bubble/story-fn7kicty-1226348121027
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Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
stinkbug yn gyfunrywiol
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themoops
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7 May 2012, 11:24 PM
Post #2
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Kochy doesn't need to be a nancy boy spruiker informercialist. He probably gets about a million a year from Sunrise.
If I was selling now I'd take a 20% hit just to get out asap.
You've been warned bulls. Time to stop living in your fuedalistic disneyland fantasy world.
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Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
stinkbug yn gyfunrywiol
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stinkbug
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7 May 2012, 11:42 PM
Post #3
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- themoops
- 7 May 2012, 11:24 PM
Kochy doesn't need to be a nancy boy spruiker informercialist. He probably gets about a million a year from Sunrise.
If I was selling now I'd take a 20% hit just to get out asap.
You've been warned bulls. Time to stop living in your fuedalistic disneyland fantasy world.
I might put your rent up again.
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AREPS
TAMPON
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zaph
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8 May 2012, 05:04 AM
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SQM Research shows house prices are falling right across the country
i thought SQM didn't track house prices...
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NotFooled
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8 May 2012, 06:47 AM
Post #5
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The Bear Whisperer
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- stinkbug
- 7 May 2012, 11:42 PM
I might put your rent up again.
........
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hoofarted
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8 May 2012, 08:51 AM
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- stinkbug
- 7 May 2012, 11:42 PM
I might put your rent up again.
You cannot put it up more than you are losing. Win / win? 
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Mr Griffin
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8 May 2012, 08:53 AM
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- stinkbug
- 7 May 2012, 11:42 PM
I might put your rent up again.
Yea. An extra $10/week should compensate $1,000 per week being wiped of the capital value.
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stinkbug
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8 May 2012, 09:00 AM
Post #8
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- Mr Griffin
- 8 May 2012, 08:53 AM
Yea. An extra $10/week should compensate $1,000 per week being wiped of the capital value.
In 15 years time, when my tenants have finished paying off my properties, I'll no doubt come back and have a chuckle.
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TAMPON
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Ben D
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8 May 2012, 09:09 AM
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- stinkbug
- 8 May 2012, 09:00 AM
In 15 years time, when my tenants have finished paying off my properties, I'll no doubt come back and have a chuckle.
...and you probably won't think past that... which will save you the despair of realising how much more money you could have made if you didn't have it tied up in property all that time.
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stinkbug
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8 May 2012, 09:16 AM
Post #10
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- Ben D
- 8 May 2012, 09:09 AM
...and you probably won't think past that... which will save you the despair of realising how much more money you could have made if you didn't have it tied up in property all that time.
Here's the problem - I've already made a lot of money from property, and the properties I own are, without exception, in areas with very high demand. I've been keeping an eye on prices for these areas, and so far I have one suburb flat and others still rising. I have some properties that have tenants who simply won't leave, because they know they won't be able to find another similar property at the price they currently pay (don't forget some states have rules around how much you can increase the rent by each year).
I don't expect my properties to rise continually. In fact, I think several of my properties have risen too far and are due for a pullback. But when I look at the prices I actually paid, and that in most cases properties that are cashflow positive even on P&I loans, it seems less risky to simply hold on for the longer haul. No doubt we'll have some stagnation even in high demand locations, but my longer term plan is to live of the rents I get, and while rents keep rising, and the loans keep reducing, I'm more inclined to let it run.
Is it possible to make more money elsewhere? Almost certainly, but the risk is much, much higher. Also, I don't want to incur the costs of selling, especially CGT.
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earthsta
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8 May 2012, 09:34 AM
Post #11
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Sell now bulls or be locked into negative equity forever 
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TED BULLPIT
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8 May 2012, 09:40 AM
Post #12
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- Mr Griffin
- 8 May 2012, 08:53 AM
Yea. An extra $10/week should compensate $1,000 per week being wiped of the capital value.
My other concern would be insurance premiums rising above rent increases over the short term. I heard yesterday that Suncorp would no longer take out new policies in two flood prone towns , and existing policy holders may face ten fold increases. One could only imagine what this will do for the towns .So to spread it around , everybodies premiums will be rising no matter where they live , and it wont be just house insurance that will rise. Major motor vehicle insurers have also copped big loses over the last year or so , so more increased premiums to spread around.
Add the carbon tax in a month or so along with tonights budget for which I believe its the worst in 25 years and things will be looking less favourable again.
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peter fraser
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8 May 2012, 10:14 AM
Post #13
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- TED BULLPIT
- 8 May 2012, 09:40 AM
- Mr Griffin
- 8 May 2012, 08:53 AM
Yea. An extra $10/week should compensate $1,000 per week being wiped of the capital value.
My other concern would be insurance premiums rising above rent increases over the short term. I heard yesterday that Suncorp would no longer take out new policies in two flood prone towns , and existing policy holders may face ten fold increases. One could only imagine what this will do for the towns .So to spread it around , everybodies premiums will be rising no matter where they live , and it wont be just house insurance that will rise. Major motor vehicle insurers have also copped big loses over the last year or so , so more increased premiums to spread around. Add the carbon tax in a month or so along with tonights budget for which I believe its the worst in 25 years and things will be looking less favourable again.
They will get insurance Ted, but they may struggle to get flood cover in their policy.
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earthsta
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8 May 2012, 10:27 AM
Post #14
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- Mr Griffin
- 8 May 2012, 08:53 AM
- stinkbug
- 7 May 2012, 11:42 PM
I might put your rent up again.
Yea. An extra $10/week should compensate $1,000 per week being wiped of the capital value.
Not to mention that his dump will sit empty for an extra 4-6 weeks per tenancy, requiring 3-4 years of rental income to make up for it.
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Ex BP Golly
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8 May 2012, 10:38 AM
Post #15
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- themoops
- 7 May 2012, 11:20 PM
Koshie saying stuff like this has to freak average joye blow.
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WHAT WOULD EDDIE DO? MAAAATE!
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4:59 PM May 24