House prices to stagnate for 'years'

[Bronte]

Some of our property has tripled in value in a relatively short space of time.
We could handle a 42% retracement.....if we had to

The majority of our property has been purchased with "No money down"
Borrowed the lot...even 'set up costs'.
What is the ROI here? The tenant and taxman have been paying the mortgage repayments for us.
Mostly new property and we claim full 'depreciation'

 

[Realist]

I'm not a Mum or Dad, and my propertys have done quite well for me, very happy thus far. I simply don't aggree with you realist.

You live in WA.

Of course you think property is the greatest thing on earth at the moment.

Of course you think I am wrong about property investing cause house prices just keep going up right?

Perth is gonna overtake Tokyo soon right?

Did you read that article about Sydney property?

We've seen it all before.

 

[Freeballinginawetsuit]

Of course I am aware about the retreat in real estate value in Sydney over the last year.
I also believe W.A. may have some down side in the next few years, all my properties are on the coast with views and I think I am well placed.
Again that is my opinion and I don't really care if they go down a bit, they won't go down enough to affect the gains I have made on my original purchase price.

Cheers.

 

[Realist]

The majority of our property has been purchased with "No money down"
Borrowed the lot...even 'set up costs'.
What is the ROI here? The tenant and taxman have been paying the mortgage repayments for us.
Mostly new property and we claim full 'depreciation'

Bronte, if you can't work out your own ROI I worry for you. Seriously.

As I say with shares, work out all expenses - brokerage, time, fees, tax, books, courses, etc. etc. and take them off your profits. Then index that against inflation.

do the same with your house. Include all time spent, agents fees, empty rent time, tax deductions, tax owed, duties, repairs, paint, carpet whatever.

Take them off your supposed profit - take out any tax owed then index that against inflation.

I have no doubt you'll be ahead of course - Perth has boomed!!

My point is thought fast forward 10 years and you may not be ahead.

 

[Bronte]

The ROI here is absolutely HUGE!

Realist, How would you class yourself financially?
Broke / Poor / Doing OK / Wealthy.....whatever!

 

[Realist]

Of course I am aware about the retreat in real estate value in Sydney over the last year.
I also believe W.A. may have some down side in the next few years, all my properties are on the coast with views and I think I am well placed.
Again that is my opinion and I don't really care if they go down a bit, they won't go down enough to affect the gains I have made on my original purchase price.

Cheers.

Probably not.

But in my original post it shows how you can lose alot of money when you take into account all costs and index it to inflation.

I have no doubt you are ahead now quite markedly probably, and will continue to be ahead for a long time. The gap you are ahead will narrow now though.

Do not forget that WA is the emptiest state on earth, it is limited for young people, as boring as batsh*t compared to Sydney, London, New York, and if a resource bust hits you guys are gonna cop it, your youngsters will head east, just like ours headed west recently. Your investment properties will be empty and drop in value.

This will happen, maybe next year, maybe in 25 years - I do not know, but there is no doubt in my mind it will happen.

I think just about every WA resident could have seaviews if they wanted them. You've got about 5,000 km's of ocean views available. Don't fool yourself that looking at water is the be-all and end-all. Sydney it is - but Sydney has the best harbour in the world and 5M people. WA has ocean aplenty and no-one lives there.

 

[Realist]

The ROI here is absolutely HUGE!

Realist, How would you class yourself financially?
Broke / Poor / Doing OK / Wealthy.....whatever!

Take a guess??

My age is between 28 and 35.

 

[Bronte]

Can you tell us please

 

[Realist]

Can you tell us please

Lets say I am about 30.

how much in money/assets should I have to be..

1) Poor
2) Average
3) Rich

I will answer but I wanna see what you think first.

 

[Bronte]

Are you having trouble working out your age Realist?????
You sound intelligent......
"Doing OK"

 

[Realist]

Are you having trouble working out your age Realist?????

Haha, I'm not that old.

I know it, but wont give an exact answer....


a gentleman never tells his age. :

 

[krisbarry]

Lets say I am about 30.

how much in money/assets should I have to be..

1) Poor
2) Average
3) Rich

I will answer but I wanna see what you think first.

If you are 30 years of age, you should have an average of $27k in your super fund, according to latest stats

 

[Freeballinginawetsuit]

Probably not.

But in my original post it shows how you can lose alot of money when you take into account all costs and index it to inflation.

I have no doubt you are ahead now quite markedly probably, and will continue to be ahead for a long time. The gap you are ahead will narrow now though.

Do not forget that WA is the emptiest state on earth, it is limited for young people, as boring as batsh*t compared to Sydney, London, New York, and if a resource bust hits you guys are gonna cop it, your youngsters will head east, just like ours headed west recently. Your investment properties will be empty and drop in value.

This will happen, maybe next year, maybe in 25 years - I do not know, but there is no doubt in my mind it will happen.

I think just about every WA resident could have seaviews if they wanted them. You've got about 5,000 km's of ocean views available. Don't fool yourself that looking at water is the be-all and end-all. Sydney it is - but Sydney has the best harbour in the world and 5M people. WA has ocean aplenty and no-one lives there.

Oceans views in W.A. (Perth are expensive, and sought after). I live on one side of a road that has a 2ook difference to the other side of the road (Marmion Ave). A small town down south, Yallingup has real estate value mor than most of Sydney, and very sought after ( I own a property here also). I must state That you are not only cynical but also unrealistic. Realist!. Certainly lacking in knowledge of W.A. real estate, maybe you live in BALGA!

 

[Realist]

Bronte, you seem to be one of those people that likes to box people, judge them on their financial worth, and someone that likes to listen to gurus. You probably think someone who lives in a flash house and drives a BMW is rich, and someone who rents and drives a Japanese car is poor.

You'd be wrong if you do..

 

[Freeballinginawetsuit]

Bronte, you seem to be one of those people that likes to box people, judge them on their financial worth, and someone that likes to listen to gurus. You probably think someone who lives in a flash house and drives a BMW is rich, and someone who rents and drives a Japanese car is poor.

You'd be wrong if you do..

Why would a rich person rent and drive a boonga car!. Lifes to short for that.

 

[Bronte]

Bronte, you seem to be one of those people that likes to box people, judge them on their financial worth, and someone that likes to listen to gurus. You probably think someone who lives in a flash house and drives a BMW is rich, and someone who rents and drives a Japanese car is poor.
You'd be wrong if you do..

No, I do not think that Realist
I think you are 'Doing OK'....well are you?

 

[Realist]

Why would a rich person rent .

Read this link...

http://www.smh.com.au/news/national...-in-debt-crisis/2006/08/20/1156012414995.html


HOUSE PRICES CAN GO DOWN!!

Smart young people in Sydney rent, it is as simple as that.

I am smart, young and rent.

you are none of the above..

 

[Realist]

No, I do not think that Realist
I think you are 'Doing OK'....well are you?

How much in assets would a 30 year old who is doing ok have?

 

[robots]

Hello,

those agents would of had the busiest days of their lifes today after that article

what bargains

thankyou
robots

 

[tech/a]

Why would a rich person rent and drive a boonga car!. Lifes to short for that.

Hahaha maybe not to that extreme.
But I agree with Realist here.

Those who I know and are seriously financially independant do own their own homes but dont flash their money about---they dont have to.
Mate of mine who has a company with a T/O of $10 mill + and still growing loves driving his EH Holden around,sure he has a Porsch,which he races,but you'll see him in either the EH or the old Monaro.

I do know of many in our circle of friends who are constantly "Keeping up with the Jones's".They are the ones with Porsches,and huge mortgages,argue at dinner that they didnt drink the wine,make up every excuse under the sun why they cant make time to join you on your next vacation.

Frankly lifes too short for Keeping up with the Jones.
Living beyond your means is the quickest way to poverty and divorce court in my veiw.