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Some of us are always interested, was last time, dont see why not this time
The property market wont have bottomed until everyone including all of you and I just aren't interested any more, all the spark will have gone there will be no rush and all the fever of the boom will have been forgotten.
It's 140 pw here. Very close to a bus that goes straight to the uni. 4 minute bus trip.Im not familar with the Perth market, but here is adel we rent a 2br apartment for just over $200 pw in the nicest suburb, and within walking distance to the unis.
Why doesnt your son get a mate with $150 pw each and get a $300 pw place?? Save them both $25 pw and have more room and less people probably....
Two yellow thumbs up MrBurns.:iagree:
Last time this happened (in WA atleast) was 20 years ago and probably won't happen again for another 20 years.
It's 140 pw here. Very close to a bus that goes straight to the uni. 4 minute bus trip.
Try 99/00. But property was absolutely rooted here for the better part of 15 years here after 87.
It was a good time to buy, if you had a good job. But wage growth was very slow here, hence little capital appreciation. The point being that property tends to wallow after big hits. And that patience potentially pays bigger dividends.hello,
not rooted when you getting principle and interest paid off is it?
thankyou
robots
passive, when I bought all those props back around 2000- 2002, I had excel worksheets with lots of ifs and buts..different scenarios...a modest 10% cap growth column and a 15% cap growth.....
It was a good time to buy, if you had a good job. But wage growth was very slow here, hence little capital appreciation. The point being that property tends to wallow after big hits. And that patience potentially pays bigger dividends.
I doubt the way most specuvestors treat property now would have done anything but chew you up in that environment.
How on earth can you have a modest cap growth assumption that is well above long term growth rates?
And Passive, I agree completely about it returning to how it was. For mine, typical property investment should not used as a means for pure capital growth, unless you are an actual developer. Like I've said many times, property should be used for income, and anything else I don't think should come into normal strategies unless in an abnormal environment.
Too many property types have either forgotten that, or never experienced the need to adopt that strategy.
And Passive, I agree completely about it returning to how it was. For mine, typical property investment should not used as a means for pure capital growth, unless you are an actual developer. Like I've said many times, property should be used for income, and anything else I don't think should come into normal strategies unless in an abnormal environment.
Gav
I think your being wise in investigating opportunity.
Those sitting on the fence seriously need to ask these questions and have some sort of answer.
(1) How long are interest rates going to be at 30 yr lows?
(2) How low will house prices in the area I want to live actually going to fall?
(3) How long will rents stay below the norm?
(4) How long will inflation be capped?
Hello dhukka, good memory but I don't know why you bought up CBA in this thread. I made a wrong call but so did 90% of other people on 90% of other stocks available to buy. Who would have ever thought RIO would drop by 80% or even BHP by 60% or WPL by 60%, people on this forum were calling them good buys at their high prices.
The Halifax has just reported that house prices are down 16.2% for the calendar year over here. No link yet.
That makes low interest rates irrelevant and can seriously impact future borrowing ability if purchases were made in 2006-7.
Nationwide refuses to pass on future interest rate cuts as house prices fall by 16% in a year
By DAILY MAIL REPORTER
Last updated at 11:04 AM on 02nd January 2009
Comments (17)
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Britain’s biggest building society today ruled out further mortgage rate cuts for thousands of struggling homeowners.
Nationwide said it would not pass on any more reductions to about 250,000 families struggling to survive the recession.
Experts said other lenders were likely to follow suit ”” leaving millions afraid that they will not get the benefit from future rate cuts.
Mooorrrning.
No hangover (I don't drink but so tiered need to get to bed!).
Some thoughts for 2009.
After recession and in worst cases depression there always follows---inflation and in some cases hyperinflation.
If you don't have property then---you'll likely never have it.
You'll all get your wish and rent for the rest of your lives as will your kids and their kids.
Cash will mean nothing as it is eroded by inflation.
That $300,000 home will become impossible to own as it will race away in price as your deposit becomes less and less in value.
You must have at least 1 home to keep in touch with inflationary trends.
Interest rates wont sit at 30 yr lows for another 30 yrs.
Those that have "ridiculous" loans will be laughing as they(The loans) diminish into in significance as inflation races away.
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