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Perth house prices up 4% in 1 Month; Is this the start of the boom.
Topic Started: 25 Oct 2012, 01:36 PM (4,587 Views)
newjez
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Mike
25 Oct 2012, 07:23 PM
See this where people like you go wrong.

Ask yourself when is a good time to buy, when prices are down or a certain % lower then the peak. When prices are down I buy land and build houses/units. Why, not only is it cheaper for the up front costs such as purchase of land but you can get better deals from the trades you use, as they are deseperate for work.

As an example. A house I built in 2009/10 during the mini boom due to low rates and Govt stimulus it cost me almost $50,000 more in construction costs due to labour and materials then what it cost me to build a similar house last year. Never build during a boom or rapidly rising prices, not only do you pay more but get a crap build as trades want to do your job and move on to the next as fast as possible.

I build a certain number of houses, units per year depending on the market. If prices are flat I will hold unless I got the land for a bargain and construction was within budget. At present in perth I hold and rent as the returns are simply to good to miss at present. With prices rising here and stock on market way down from 12 months ago, I might try and sell a few in early 2013.

Some properties I hold long term, others I flip quick or use them to replace older builds to keep deprications flowing and reducing my tax bill each year which is large due to profits often from capital gains.

I am presently in the process of securing a large block of land close to the city which has approval for 5 units, well they will be more like 2 storey town houses is what I have planned for them. I will start construction on them later next year once I get my new house underway. Not sure if I will sell these 5 as the rents close to the CBD are very good, i might sell 2 keep 3 something like that but it all comes down to profit margins even selling or the return on investment at that point in time.

I do have a business though, and considered a developer by the banks which is tough at 1st but once you got 2 years of proven cash flow behind you and can show solid profits your lending ability goes through the roof as now it is based on business income not my wage from my day job. I still do a few builds or buys under my own name for tax reasons but mostly under my developer name, plus business right offs are too good to miss out on.

But anyway it cant be done right, no one can build lots of houses, units and so forth. Just how do you think poeple started out 50 years ago in a small business and now build 50 storey apartment blocks. Anyone can do it, you just need to put the effort into it instead of putting so much effort into saying it cant be done, the world is so unfair cry me a river.
Do they let you out on weekends Mike to survey the builds? I guess letting you use the computer must be some sort of theropy. Hopefully the pills will work and we'll see you back on the streets soon.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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frankrider
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Damn you lot. Do you have to quote the whole pile of shit. I read half that twaddle before I realized who had posted it. Now I need to rinse my eyes again.

Negative gearing is a form of leveraged speculation in which a speculator borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan

A negative gearing strategy can only make a profit if the asset rises so much in price that the capital gain is more than the sum of the ongoing losses over the life of the speculation. http://en.wikipedia.org/wiki/Negative_gearing
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Trojan
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stinkbug
25 Oct 2012, 08:03 PM
I think I've said this before, but the difference between property bears and successful property investors is that investors are betteer at finding ways to make things work, rather than relying on forumlas and hype. The bears, for the most part, just don't understand, and that's why they get angry and frustrated.
+1
This statement is so true!
People get rich by finding solutions where others only see problems.

But its not constrained to property.
Some people buy badly managed companies and turn it it around to sell at huge profits.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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skamy
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Morning Perth bears

:D :dry:
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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Mike
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newjez
25 Oct 2012, 04:17 PM
Mike - do you mind shutting the window after your credibility please?

What a numbnut. If anything, this is representative of the decreasing volumes in Perth. You will see more wild swings as that data pool becomes so small as to be meaningless. I think Perth data has become so volatile that we can pretty much ignore it. It's volumes we need to be concentrating on now to give us trends. Volumes in themselves are hard to interpret without and ear to the ground.
Nice call, I was warning you and you ignored it. Trend was already there to see just you couldn't or did not want to see it.
http://mike-globaleconomy.blogspot.com.au/
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skamy
7 Sep 2014, 08:31 AM
Morning Perth bears

:D :dry:
Morning skamy

Is this some kind of troll ?

Meanwhile its all falling apart over there, jobs crashing, rental vacancies surging, rents crashing and prices dropping , all while at record low interest rates.

With Iron ore hitting five years lows this week, it only gets better from here.

Maybe I can read you the same bedtime story I read to timmy, the night before he dissapeared FOREVER.

Would you like me to find it for your skamy ?



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Mike
7 Sep 2014, 11:38 AM
Nice call, I was warning you and you ignored it. Trend was already there to see just you couldn't or did not want to see it.
Mike, in the op you agree with the bull spriuker call of 22% rise over three years. You seem to have changed your tune a bit now. Why?

It barely budged in half a decade with a 100 year mining boom and record low rates in place.
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Jimbo
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7 Sep 2014, 11:47 AM
Mike, in the op you agree with the bull spriuker call of 22% rise over three years. You seem to have changed your tune a bit now. Why?

It barely budged in half a decade with a 100 year mining boom and record low rates in place.
He also predicted that Iron Ore would trade in a narrow range and wouldn't collapse in price.

Quote:
 
Half really, you do know Iron ore hit $151 last week up 9% for the quater. Currently sits at $148 a ton. I think you need to learn to count. Care to tell me what the price of Iron ore was when this boom or super cycle started, under $40 a ton.
Why are Iron Ore prices rising if as you claim demand is slowing in China? Perhaps you need to study economics and understand that over 8% GDP growth in China means it will need alot more Iron Ore this year and in future years then it did in 2011 and 2010 and earlier. The price of Iron Ore will remain high for along time, it will move with in a range but it certainly wont collapse.


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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doubleview
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Jimbo
7 Sep 2014, 01:39 PM
He also predicted that Iron Ore would trade in a narrow range and wouldn't collapse in price.



Good old Mike thinks he has a crystal ball and everyone is as dumb as shit.

The writing was on the wall regarding the iron ore cliff drop!

http://australianpropertyforum.com/topic/9844613/7/#post8392893

This is not rocket science, I wonder who these Perth bulls think they are fooling!

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newjez
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Mike
7 Sep 2014, 11:38 AM
Nice call, I was warning you and you ignored it. Trend was already there to see just you couldn't or did not want to see it.
Whether it takes the form of a crash or a slow burn is largely irrelevant. It is clear now that your supposed victory and my terrible error was merely a dead cat bounce. It happens. Get over it. You've failed to make any headway. It's all downhill from now. 3% in the last five years. Nothing or less for the next five. Get used to it.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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