'Building Wealth through Investment Property' by Jan SomersBronte said:The book did spur us along to buy lots of property...so it can not all be bad..can it? LOL
Bronte said:Plenty of suburbs in Perth have returned 10 capital growth over the last 30 years. Reference The West Australian 24Th May 2003
Bronte said:Do you have any Investment Property Wayne?
Bronte said:Jan also writes: 'In the United States, the average long-term growth trend from 1968 to 1990 was 8%, while inflation over the same period averaged 5.9%'
Plenty of suburbs in Perth have returned 10% capital growth over the last 30 years. Reference: The West Australian 24th May 2003
Bronte said:"Perth real estate is certainly not stagnant.
86 people a day are presently migrating to WA
This equates to 50/60 extra homes required per day.
We have been busy buying prime real estate since 1998"
Quote from last October...this thread.
We have been buying at least one property per year since 1998
Today we decided to list our first property to Sell.
So have we Wayne....in Birmingham, England.wayneL said:In pommyland, but not expecting it to hold it's preposterous valuation.
Bronte said:So have we Wayne....in Birmingham, England.
Where is / are yours?
Bronte said:Very nice.... we used to own a holiday home in Minehead ?
wayneL said:Quite close then. I've seen that on the map. (can't find it now though lol) closest one is probably nr. Yeovil
Well only in the normal bust boom cycle of new dwelling construction perhaps. I certainly have seen nothing in the demographic research I have read that would indicate doom for the Jan Somers style of investing in Australia. It's a very robust methodology which will stand the test of time I believe.wayneL said:Coincidently, this is the period of the baby boomers influense. Demographics are changing and we are entering the phase of the great die-off.
Property will be is massive oversupply sometime over the next 30 years.
WaySolid said:Well only in the normal bust boom cycle of new dwelling construction perhaps. I certainly have seen nothing in the demographic research I have read that would indicate doom for the Jan Somers style of investing in Australia. It's a very robust methodology which will stand the test of time I believe.
If you are not aware that average people per house is falling rapidly then it might appear likely that there will be less demand for dwellings from an ageing populace. Also there is the possibility that Australia's attitude to immigration (think 200 mill in Indonesia, 1 Bill in India, 1 Bill in China, many young skilled and happy to come to Australia). Suffice is to say that there are plenty of things to consider when forecasting.
I predict for the next 30 years property located in an Australian capital city will continue to do pretty much what it has done for the last 50, which is grow a bit over the rate of inflation, roughly 10.5% for houses.
Just an aside as I spend a lot of time reading about such issues there is an excellent article about why inflation is being pushed into things like housing and service industries (things China can't make for us) published by GaveKal research if anyone wants to do a bit of digging. Overpriced? According to what measure and why should that still be relevant?
I predict for the next 30 years property located in an Australian capital city will continue to do pretty much what it has done for the last 50, which is grow a bit over the rate of inflation, roughly 10.5% for houses.
Bronte said:These are the suburbs we concentrated on.....thanks to Jans book
South Perth
Victoria Park
Scarborough
Mount Lawley
Innaloo
Inglewood
East Vic Park
Leederville
Realist said:I predict that you are totally, utterly, and completely wrong.
There's no way a $500,000 apartment in Sydney will be worth $8M in 26 years.
No way in hell.
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