Why buy when you can buy the same property cheaper later?
Because someone else is buying/has bought any suitable re-developable houses and they are also buying the houses that present a good upside for further earnings. That being the case how will I be able to buy them later if they have already been snapped up by "smarter" people?
If you meant that I can buy the shit that's left over later after the gold has been picked out then I would say that you are correct. Fortunately for me I am not as stupid as you
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Because someone else is buying/has bought any suitable re-developable houses and they are also buying the houses that present a good upside for further earnings. That being the case how will I be able to buy them later if they have already been snapped up by "smarter" people?
If you meant that I can buy the shit that's left over later after the gold has been picked out then I would say that you are correct. Fortunately for me I am not as stupid as you
You sort of disregarded my post, way to cherry pick.
Not all properties have re-developable potential moron. Even if they do the majority of people who do their 9-5 aren't interested in developing their property.
Quote:
If you meant that I can buy the shit that's left over later after the gold has been picked out then I would say that you are correct.
And no... just because someone bought now does not mean that the particular property won't possibly be up for sale in the future for a lower price. Like I said stagnation with more downside. Let the mug borrow at 90% leverage now and when he is negative equity 3-4 years down the track and prices have stagnated at best you will have all the power when negotiating.
Not all properties have re-developable potential moron.
You disregarded the second part of my post, how did you say it.........................moron?
Quote:
.......and they are also buying the houses that present a good upside for further earnings.
While you hang out for the even cheaper price on what could be already well priced "average" property, somone else is picking the eye teeth out of that market leaving the shit behind for you
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
The past 20 years prices in cities have risen because of a couple of things:
-Mass availability of credit -Duel income mortgages -Population movement to cities -95% leverage loans -Cheap oil = cheap goods -Government stimulous -Government intervention favouring property over business and enterprise
In today's world people are buying property based on the experiences of the last 20 years. They think that 2010-2012 is just a small blip and price rises will return to previous growth levels. Future Australian property prices will be stagnation with more downside to prices. Why buy when you can buy the same property cheaper later?
I grew up on a farm. When there was a drought, you couldn't conceive of a time when you would have enough water, let alone too much. While it was raining it was hard to believe it would stop. It's the same with the economy.
You can also take the view:
-- credit is still available - even more of it than you want, apparently. -- Mortgages are still dual-income -- Most of the capital cities are still growing quite fast -- You are starting to be able to get 90%+ LVR loans again -- Oil is currently cheaper in real terms than it was in 1980. -- Who says the government won't undertake stimulus again? -- How has the nature of the political process changed that the govt will stop favouring the majority of voters who have a stake in property?
I would say that today, people are buying property based on their experience of the last 6 months. But long-term the price of property and rent seem to go up more or less at the rate of household disposable income (i.e. faster than CPI recently), except that each time we go around the circle you seem to get a bit less for your money. Every now and again we have perturbations that move the price away from trend, but then the market corrects it. Also, the market can stay irrational for a very long time.
Regardless, you have your view and I have my view. Neither of us can prove the inevitability of our predictions.
It is dangerous to confuse what you want to happen with what is going to happen, but also very very hard not to.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
An Hele written article spruiking how buying is better than renting.
If you are buying for lifestyle, location and other personal factors any time is a good time to buy.
However it is important to conduct a financial risk analysis? Calculate the what if's?
1. If I buy what will be the financial outcome? e.g. will I be a slave to a mortgage or live comfortably? What do I really want? 2. If I continue to rent what will be the financial outcome? What will be the ongoing rental costs? What will be my quality of life?
First home buyers will have personal preferences and ideas and that is important. However buyers should always conduct some objective unemotional financial analysis, because if they overcommit financially they could be in for some financial pain. I am not endorsing or promoting this site, however there are calculators available that allow buyers to compare the financial cost of renting versus buying. Check out this site http://www.investmentpropertycalculator.com.au/free-home-rent-or-buy-analysis-calculator.html
I would beg to say that Michelle Hele (spruiker) of the Herald Sun has not employed any objective financial analysis.
Michelle has quoted "CBA/Mortgage & Finance Association of Australian research" and this of course will be biased research, as it is in the best interest of CBA and Lenders to promote home loan finance. No surprises here.
In short I agree with other comments in this thread and this article is just the usual spruiking. It is probably advertorial.
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