House prices to stagnate for 'years'

[wayneL]

Which ever assets their own research and opinions tell them will perform the best.

I think that 'Spending less than you earn" and 'Investing the difference" is more important than trying to time and second guess the market.

For instance if you bought toll shares 10 years and about 3 stock spilts ago it doesn't really matter if you timed the market and bought at $1.90 or you over paid and bought in at $2.90 a share you would be sitting pretty right now,... even though there has been some ups and downs you still would be worth over $40 per share by now.

If your saving $100 a week every week and investing it throughout gloom and boom in a range of asset classes I don't think you can go wrong. I don't really believe in trying to time markets I don't trade the bulk of my portfolio.

I probably only trade less than 10% of my holdings, the rest are buy and hold.

If my stocks go down in this slump It doesn't really phase me I am purchasing about $1000 a month every month, so I will pick the stock out of my portfolio that is the best value and increase my holdings,

OK I'm confused now. Tech and yourself are advocating property and creating opportunities in it, and when questioned about the $20 per hour guy suggest the stockmarket... something I would suggest. Huh?

What do you property guys suggest a $20 an hour guy do, in "creating value" as tech put it, in the property market?

 

[robots]

hello,

i love shares too!

buy a house in an area they can afford, average house in best street/area of suburb principle

this could also be a unit

I would look for house where add-ons can be done, ie landscaping (soft), painting, floorboards, going a step further a front fence, grand entrance

places get tired, renters trash, some owners dont give a rats

take you're time and enjoy living in the place, save money and reduce the mortgage

thankyou

robots

 

[wayneL]

hello,

i love shares too!

buy a house in an area they can afford, average house in best street/area of suburb principle

this could also be a unit

I would look for house where add-ons can be done, ie landscaping (soft), painting, floorboards, going a step further a front fence, grand entrance

places get tired, renters trash, some owners dont give a rats

take you're time and enjoy living in the place, save money and reduce the mortgage

thankyou

robots

That's good advice (but I'd caution about value as per my consistent argument), but what about for investing? Even that sort of property would have to be subsidized from wages... at the moment, YUK!

 

[tech/a]

OK I'm confused now. Tech and yourself are advocating property and creating opportunities in it, and when questioned about the $20 per hour guy suggest the stockmarket... something I would suggest. Huh?

What do you property guys suggest a $20 an hour guy do, in "creating value" as tech put it, in the property market?

Wayne.
My suggestions still stand.
The $20/hr guy with no collateral wont be able to get in the market now or 8 yrs ago or if the property market comes off 40%.

If he's a smart $20/hr guy he wont stay on $20/hr long and will be in a position to become involved as he ticks the boxes so to speak.

I wouldn't be recommending getting into the market either without ticking most of the boxes and learning "The Trade".

No doubt its tough we have all been the $20/hr guy except some of us were the $20 a week guy! But we found a way.
Well some of us did.

 

[wayneL]

Wayne.
My suggestions still stand.
The $20/hr guy with no collateral wont be able to get in the market now or 8 yrs ago or if the property market comes off 40%.

That is clearly incorrect. There are thousands of examples of 20/hr guys who became property investors in more rational times; dozens whom I know personally.

If he's a smart $20/hr guy he wont stay on $20/hr long and will be in a position to become involved as he ticks the boxes so to speak.

I wouldn't be recommending getting into the market either without ticking most of the boxes and learning "The Trade".

No doubt its tough we have all been the $20/hr guy except some of us were the $20 a week guy! But we found a way.
Well some of us did.

So you're saying that to become a property investor, one must first become somewhat of an entrepreneur in their chosen profession, in order to subsidize either a/ a property investment, sucking cashflow each week or b/ to diversify entrepreneurship into development?

This really highlights how imbalanced things have become as there are so many examples of property magnates who have done nothing more than buy properties at value, maybe the odd reno. The ones (here in the UK at least) who stopped buying when the numbers didn't stack up anymore are rolling in cashflow and living the dream. The ones that kept buying speculatively are having problems with many going under already.

I am uniquely placed here to see that first hand and that is what I'm seeing, and it's consistent with my long term views.

The $20/hr guy's time will come again (if of course, he wants it)

 

[robots]

hello,

for some just owning the home is a form of property investing,

now ignoring why, how, cant sustain that etc, people are sitting on healthy returns/money just my doing the above

that may be all the $20/hr guy can do,

but what is property investing, buying a house to live in, buying a rental property and sitting on it, developing a block into duplexes, developing a block into a 20 level tower

thankyou

robots

 

[wayneL]

hello,

for some just owning the home is a form of property investing,

now ignoring why, how, cant sustain that etc, people are sitting on healthy returns/money just my doing the above

that may be all the $20/hr guy can do,

but what is property investing, buying a house to live in, buying a rental property and sitting on it, developing a block into duplexes, developing a block into a 20 level tower

thankyou

robots

Bot,

Some correct punctuation and grammar would help us understand WTF you're on about.

But I suspect from what I have deciphered from the above that you haven't been listening, re investment vs business.

 

[robots]

hello,

could someone please explain to me what property investing is?


thankyou

robots

 

[wayneL]

hello,

could someone please explain to me what property investing is?


thankyou

robots

Read the thread.

It's not too far above.

 

[numbercruncher]

Wayne.
My suggestions still stand.
The $20/hr guy with no collateral wont be able to get in the market now or 8 yrs ago or if the property market comes off 40%.

I swear to god you guys just make it up as you go along ....


8 years ago I earnt $20 an hour and bought the nicest house in the street and borrowed virtually all the money, Governments FH grant gave 4pc of the price.

The figures now clearly show that the average wage cant buy an average property, all high property prices do is screw over the younger generation, property in Australia is in a unsustainable bubble. My punt is this stock crash and rising interest rates is the trigger to bring it back to reality.

And from an investing standpoint , how on earth can you justify 8.5pc interest rates vrs 3.5pc rental returns, placing ALL your faith in capital appreciation ?

 

[robots]

hello,

thanks sir

robots

 

[explod]

I swear to god you guys just make it up as you go along ....


8 years ago I earnt $20 an hour and bought the nicest house in the street and borrowed virtually all the money, Governments FH grant gave 4pc of the price.

The figures now clearly show that the average wage cant buy an average property, all high property prices do is screw over the younger generation, property in Australia is in a unsustainable bubble. My punt is this stock crash and rising interest rates is the trigger to bring it back to reality.

And from an investing standpoint , how on earth can you justify 8.5pc interest rates vrs 3.5pc rental returns, placing ALL your faith in capital appreciation ?

Good post Numbercruncher and keep looking at things as they are.

Property has been a good investment since I brought my first home in 1976. From my experience it has at best gone flat now and a poor one at the moment. If you have for example $200,000 to buy a home you can generate more (by the divvy alone) than it costs to rent by just putting it into Woolworths shares. And with the hard times on us they will also offer some equity growth on top of that dividend as well. ( people have to eat food)

Do the sums out there and admit the good property days are gone for awhile. No big deal, just part of the normal financial cycle.

 

[robots]

Good post Numbercruncher and keep looking at things as they are.

Property has been a good investment since I brought my first home in 1976. From my experience it has at best gone flat now and a poor one at the moment. If you have for example $200,000 to buy a home you can generate more (by the divvy alone) than it costs to rent by just putting it into Woolworths shares. And with the hard times on us they will also offer some equity growth on top of that dividend as well. ( people have to eat food)

Do the sums out there and admit the good property days are gone for awhile. No big deal, just part of the normal financial cycle.

hello,

another example of property investing sir,

people have to live somewhere, data coming out will indicate that aus property has plenty more left, bleeding hearts who cant afford it

thankyou

robots

 

[Tysonboss1]

OK I'm confused now. Tech and yourself are advocating property and creating opportunities in it, and when questioned about the $20 per hour guy suggest the stockmarket... something I would suggest. Huh?

What do you property guys suggest a $20 an hour guy do, in "creating value" as tech put it, in the property market?

As I said in lots of my posts I invest in both shares and property,

If someone is just starting I would recomend the stockmarket till they have enough equity to go for the property market,.... the last thing I would want is for them to over extend they selves on a 100% loan.

 

[wayneL]

hello,

another example of property investing sir,

people have to live somewhere, data coming out will indicate that aus property has plenty more left, bleeding hearts who cant afford it

thankyou

robots

Another example of appalling punctuation and grammar. What exactly are you saying here? I'm serious, what is your message? It sounds very nasty and mean spirited if I have interpreted correctly.

 

[Flying Fish]

heys robots i think you're a screw too loose, or maybe just a stubbie short of a six pack lol

 

[explod]

hello,

another example of property investing sir,

people have to live somewhere, data coming out will indicate that aus property has plenty more left, bleeding hearts who cant afford it

thankyou

robots

Of course. But remember Australia and the US are the highest pro rata property owners in the world (or should we say debt holders he he, except it aint no laughing matter). In many countries it is the norm to live in rented accomodation. Not knocking what you advacate, just saying there may be better places to put your money at the moment if you want it to grow. That is what this forum is all about, the best stratiegic angles and experiences on growing your hard earned.

 

[Broadside]

hello

property is different from every other asset class

it is never overvalued and never falls

thank you

 

[robots]

hello,

explod, suburbs around melb have had great increases over the past 12 mths, I have been sharing my experiences in relation to this, i apologise

things are going to roll on unless something changes in the labor & materials involved in building

yeah too right I am nasty when it comes to people with their hand out and then getting on forums and newspaper forums canning property because they can't live in a capital city penthouse

feed up with it, down the street corner wanting a dollar of my hard earned, like its someone's right to get a free dollar and get put up at the Windsor

kids with 5k tattoo's on legs and arms, 20 pairs of trainers, going to every dance party known to mankind and flipping 20 pills

thankyou

robots

 

[numbercruncher]

things are going to roll on unless something changes in the labor & materials involved in building

What needs to change with these two Ingredients in your little equation?