Julia
In Memoriam
- Joined
- 10 May 2005
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You could have used this as a prime example in the "Greed" thread, Bill!
Serves him right.
You could have used this as a prime example in the "Greed" thread, Bill!As much as these 2 renters did not want to move they did and the left the area and got a better deal in another suburb. There was a bit of renting slump soon after they moved and I walked past this unit for 5 Months and it was vacant all that time. Now if I was the owner of this unit I would have much rather have kept these blue chip tenants than let them walk and get no rent for 5 Months.
My last point is on the unaffordability of housing. Isn't the high entry costs relative to the lifestyle we lead. Sure it costs more, but we have more luxuries, more disposable income, higher wages and obviously people were willing to pay these infated prices, otherwise there would have been no need to put the breaks on the economy.
Its interesting to reflect that my parents could not afford their first house until their mid 40's, renting in their generation was very common and one generation later and their children all have several properties each, it shows you just how far we have come.
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When the economic cycle turns these won't be the people who take advantage of lower prices...instead, they'll be saving for a rainy day, in case they lose their jobs during the down turn. It doesn't matter what happens, they can't win...you can't help them win.
I've really enjoyed reading this thread, finding it quite informative and realising that I have a lot to learn about property investments. However I have found it a little intimidating posting because everyone seems to have such an enormous wealth of knowledge around property and a lot of what I read tends to go straight over my head. But I am learning from you all.
So for some of my thoughts (that I'd welcome your opinions on providing you don't call me a moron):
Firstly not all landlords are out there to screw every cent out of their tenants. It is really unfortunate that in order to keep a property, some investors need to put up the rents. My tenants are still on a good wicket and are paying $70pw below market value, I was just very fortunate to have a fixed loan in place before any of the rate rises. Most of us have been a tenant ourselves at some point and know how difficult it is to deal with landlords and to keep a roof over your head at a reasonable price. So we are not all heartless money grabbers. By the way if you think rents are bad in the Eastern States, here in the Pilbara WA, houses are reaching up to $1,600 pw, totally incredible
Secondly I don't have the same negative opinions on the current market, it seems to me that some areas are growing in value, some stagnant and some decreasing, guess 'location' is more important than a bargain buy. So far my locations have remained stagnant, which is ok with me because I've already done extremely well as a result of the property boom in Perth, so I'm happy to let it sit.
But I've not pulled back and although many of you would disagree in the current environment, I'm still purchasing. I think there are some great opportunities out there to be had. I managed to pick up a triplex block, 5 mins to beach, walking distance to station and many many other things going for it's location. It was fortunate timing with the developer looking to get rid of the last remaining blocks and reduced the price by $50k. As a long term buy I'm confident it will do well, I'll ride through the cycles to come.
Overall I don't think the stock market is fairing any better than property at the moment. I like the fact of security in bricks and mortar and therefore like to have a foot in both camps. If not for my properties, I probably would not have started down the path of financial education.
My last point is on the unaffordability of housing. Isn't the high entry costs relative to the lifestyle we lead. Sure it costs more, but we have more luxuries, more disposable income, higher wages and obviously people were willing to pay these infated prices, otherwise there would have been no need to put the breaks on the economy.
Its interesting to reflect that my parents could not afford their first house until their mid 40's, renting in their generation was very common and one generation later and their children all have several properties each, it shows you just how far we have come.'
Thanks
I saw the average wage in the NW of $125K quoted earlier the cleaners will most likely start some where above that on the project, image the cash sloshing around from this project alone that flows back feeding property.The estimated economic benefits for the nation, the state and the region that would flow from the development of the Gorgon Project include:
* $11 billion initial investment
* $17 billion in taxes and royalties
* Additional export income of $2.5 billion a year
* 6000 direct and indirect new jobs, 1700 of which will be in Western Australia
* Expansion of existing services and industries, and attraction of new ones
* Underpinning the development of new technologies and skills, such as CO2 sequestration and subsea technology, creating regional capacity for future growth.
Its interesting to reflect that my parents could not afford their first house until their mid 40's, renting in their generation was very common and one generation later and their children all have several properties each, it shows you just how far we have come.'
Thanks
INTEREST rates are set to rise by up to 0.4 percentage points within weeks of the Reserve Bank board meeting on Tuesday.
The Reserve Bank is almost certain to lift rates by 0.25 percentage points, which would flow on to mortgages by the end of the week. But a big jump in rates in the money market, where banks source about half their funds for lending, has meant they are likely to load the official rise with another 0.1 or 0.15percentage points, possibly at the same time or within weeks.
It should be noted that it probably only took your parents 5 years to pay off their house at that time.
When you refer to their children all having several properties, are we talking about owning debt as opposed to owning property
Perth has 22 suburbs with $1m values
http://www.news.com.au/perthnow/story/0,21598,23302781-2761,00.html
HOMEOWNERS in Sydney's outer suburbs have been losing as much as $450 a week every week since early 2004 on the value of their properties as the real story of mortgage belt misery begins to emerge.
With the Reserve Bank likely to announce yet another interest rate hike tomorrow, a Daily Telegraph investigation reveals hundreds of streets in Sydney's outer suburbs now have houses that have been bought and sold at a loss - in rare cases more than 40 per cent in value.
Read your article again. It says that Perth property prices have been falling for months.
And even for those who bought in the past year, when the market flattened, only six Perth suburbs slumped in value, with Guildford being the worst.
Experts predict further slow growth and up to a 15 per cent decline in values in some of Perth's outer suburbs.
If you want to speculate in this environment, go ahead.
Once prices start falling, it starts feeding on itself, because the next question is, how far will prices fall, because no-one wants to be hit with negative equity as soon as they're bought a house...Read your article again. It says that Perth property prices have been falling for months.
The massive losses of some Sydney suburbs being exposed by the daily telegraph.
http://www.news.com.au/business/story/0,23636,23309209-5013951,00.html
Wouldnt be much fun paying $500 a week interest and having your " investment " tank another 450p/w on top !
I gotta try and get The Castle on the Beeb over here, if only so we don't get blank stares when we say that.Tell em they're dreamin:
Read your article again. It says that Perth property prices have been falling for months. If there are 22 suburbs with average house prices above $1m, it just goes to show how far the market could slump. Who are buying these properties? Even a cashed up geologist or mining engineer would struggle.
If you want to speculate in this environment, go ahead. Personally, if I wanted to spend more than a million dollars on a house, I'd buy somewhere that isn't dependent on speculation and a short lived resources boom - Hong Kong or New York or Shanghai.
WA continues to lead the way as Australia's number one resources investment destination with about $100 billion worth of projects either committed, under construction or under consideration in the State over the next few years.
Such a load of cr@p from the tele.
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