I have given up buying a house

[wayneL]

Folks,

Lets be careful not to polarise into property is No 1, or, property is crap.

Clearly, there are times when RE is a truly magnificent investment. 5- 8 years ago it was obviously fundamentally cheap, particularly in parts of the UK. It would not have mattered if there wasn't this speculative boom to jack up equity so fortuitously. The investment was still sound.

Perhaps not so clearly, there are times when it is a lousy investment. In my opinion, now is such a time, unless doing something very creative. Of course this is a matter of opinion and only time will confirm or negate this view.

It looks to me like Techs was a great investment, no matter how you look at it.

Cheers

 

[krisbarry]

I haven't had an answer to the question as to thether or not you are still living at home and bludging on your parents (or your mates). Does no reply mean YES.?

Read the first post on this thread and your questions will be answered.

I have no problem with it...if people are offering, just accept it.

But note b4 sprouting off...I moved out of home at 18 years of age with nothing more than a garbage bag full of clothes due to domestic violence and have paid well over $40K in rent since that time.

 

[tech/a]

Wayne.
I agree.

Re this Sydneys more expensive than the Backwater known as Adelaide rubbish.

Sydney housing has decreased around 20% in some parts 12% in most.
Savvy Sydney buyers are buying (Or have bought) in Adelaide,Perth and Darwin.Why do you think that is?

The point Im making here is I'm no genius.
Anyone can use the power of Compounding and leverage.
It doesnt have to be Housing nor Shares or Futures.

BUT it CAN be and SHOULD be when the time is right.

In times of adversity there is ALWAYS opportunity.

Buying outright housing now is high risk,but building high density low cost apartments for sale and or Rent is LOW RISK.
Rental vacancies are low,low cost housing is still in demand and will remain so.
Interest rates will rise,less will be able to afford to buy,particularly high value property.Rental pressure is now and will continue to be high.

I have a number of rentals which I have just increased 15% across the board.
Did I hear a whimper on the increase.----Not a 1.

Shares are the same---there will always be dips and corrections,there will always be trends.Provided my trading remains within the Blueprint from which my trading originated then I will be there.
Sure there could and probably will be a catastropic event,but like housing when the opportunity arises to freehold (Take out the risk) occurs then I take it.
If and when I find myself forced to sell my portfolio those funds will be placed against property which is not freeholded.I can access it when ever I want from any of 6 lines of credit.

If I see a great block for development I turn up to the agent or auction armed with a cheque!

Anyone can do it,I just encourage all to think out of the square stop belly aching about how all those who take calculated risks in their lifetime will go down in a screaming heap and actually DO SOMETHING.

In my short 52 yrs Ive come close to Bankruptcy twice and wouldnt change that part of life for one minute---WHY---Because I learnt more with my back to the wall than Ive learnt in ALL of the good times.

Infact if you ever get in that situation (Possible bankruptcy) look me up.
Here is why---
Those that you owe money to have the problem--They want their money and you dont have it!
YOU ARE IN A POSITION OF ENORMOUS POWER---not them!
So dont panic.
All you need is a good Solicitor and a great Self Appointed Reciever.

Ernst & Young are/were sensational.

Realist hop on a plane there is a whole world out there---GO GET IT!

 

[nioka]

Read the first post on this thread and your questions will be answered.

I have no problem with it...if people are offering, just accept it.

But note b4 sprouting off...I moved out of home at 18 years of age with nothing more than a garbage bag full of clothes due to domestic violence and have paid well over $40K in rent since that time.

Fair enough but dont complain later if they spend what you consider is your inheritance.

 

[krisbarry]

Fair enough but dont complain later if they spend what you consider is your inheritance.

There are no complaints in my family...My mother is making damn sure that her 3 children are left with inheritance :

 

[Realist]

=Savvy Sydney buyers are buying (Or have bought) in Adelaide,Perth and Darwin.Why do you think that is?

Cause they aren't smart enough to buy shares?

 

[robots]

hello,

those that what for the downturn in quality property are dreaming

you will be like those who around 00 - 01 were saying it will drop

there's plenty for buyers and sellers at the moment and i'm sure there is still plenty of very happy Sydneysiders

uncle just sold in Newtown, well over purchase price 3yrs ago

all the crap is being sorted out

thankyou
robots

 

[Realist]

Realist hop on a plane there is a whole world out there---GO GET IT!

I'm in Singapore at the moment. I've seen most of the world. It aint that exciting.

Just cause I am a housing Bear does not mean I do not realise that money can be made from housing. All I am saying is the horse has bolted where I live, and that I believe investing in shares suits me better personally, I enjoy it more, I believe I can make more longterm, and I believe with the exhorbetent Sydney prices combined with exhorbetent taxes and poor rental yields I am better off renting and investing in shares at the moment.

It is amazing how many old farts disagree with my theory cause of what they've done in their lives. They bought a house years ago and it has increased dramatically. So they believe houses are the way to go.

I do not disagree it was the way to go for them, I disagree it is the way to go today in Sydney for me though!!

 

[professor_frink]

I'm in Singapore at the moment. I've seen most of the world. It aint that exciting.


Just cause I am a housing Bear does not mean I do not realise that money can be made from housing. All I am saying is the horse has bolted where I live, and that I believe investing in shares suits me better personally, I enjoy it more, I believe I can make more longterm, and I believe with the exhorbetent Sydney prices combined with exhorbetent taxes and poor rental yields I am better off renting and investing in shares at the moment.

It is amazing how many old farts disagree with my theory cause of what they've done in their lives. They bought a house years ago and it has increased dramatically. So they believe houses are the way to go.

I do not disagree it was the way to go for them, I disagree it is the way to go today in Sydney for me though!!

Realist,

For the part I've put in bold, could you explain that please?

How do you think you can do better out of shares, when you won't use any leverage?

 

[rub92me]

Infact if you ever get in that situation (Possible bankruptcy) look me up.
Here is why---
Those that you owe money to have the problem--They want their money and you dont have it!
YOU ARE IN A POSITION OF ENORMOUS POWER---not them!

Now THAT'S a great way to make money: don't pay your creditors!

 

[tech/a]

Yeh well before you take the narrow minded view,on BOTH occasions large contractors I subcontracted to went belly up. I was (as well as quite a few others) caught in the knock on effect.
Worst was in the late 80s when also holding Commercial property which got belted by inflation and we had 18% interest.
Other small businesses couldnt pay rent so My business was left to cash flow the rest when a biggy goes belly up many like myself find themselves deep in it.

 

[nizar]

How do you think you can do better out of shares, when you won't use any leverage?

data shows that in the long term shares return 13%pa and property 11-12%pa

 

[tech/a]

Nizar.

The difference is that 99% of the populace put their deposit down for a house of say $300,000 and away they go.

.01% of the populace does the same with shares.

 

[cogidubnus]

I'm in Singapore at the moment. I've seen most of the world. It aint that exciting.

Just cause I am a housing Bear does not mean I do not realise that money can be made from housing. All I am saying is the horse has bolted where I live, and that I believe investing in shares suits me better personally, I enjoy it more, I believe I can make more longterm, and I believe with the exhorbetent Sydney prices combined with exhorbetent taxes and poor rental yields I am better off renting and investing in shares at the moment.

It is amazing how many old farts disagree with my theory cause of what they've done in their lives. They bought a house years ago and it has increased dramatically. So they believe houses are the way to go.

I do not disagree it was the way to go for them, I disagree it is the way to go today in Sydney for me though!!

Who are you calling an old fart young whipersnapper?

 

[cogidubnus]

data shows that in the long term shares return 13%pa and property 11-12%pa

lol Whose data? Where did you pluck those figures from? Over my years I have made 1000% returns on shares and about 15% on property. :

 

[Julia]

lol Whose data? Where did you pluck those figures from? Over my years I have made 1000% returns on shares and about 15% on property. :

I suppose it depends on the cycle in which you buy and sell with both.
i.e. if you managed to always buy at the bottom of the market in housing or shares and sell at the top, obviously you're going to do better than someone whose timing is less astute.

I made most out of property when interest rates on second mortgage were 22% - inflation at the time pushed property prices up and rents were anything you wanted to ask if you were in the right area.

Julia

 

[tech/a]

lol Whose data? Where did you pluck those figures from? Over my years I have made 1000% returns on shares and about 15% on property. :

Hmm lets say you have been using just the capital for a singular house investment let alone multiple,with 1000% returns you must be a well known trader having made Multiple Millions.?

Is that you Larry?

 

[cogidubnus]

I suppose it depends on the cycle in which you buy and sell with both.
i.e. if you managed to always buy at the bottom of the market in housing or shares and sell at the top, obviously you're going to do better than someone whose timing is less astute.

I made most out of property when interest rates on second mortgage were 22% - inflation at the time pushed property prices up and rents were anything you wanted to ask if you were in the right area.

Julia

Exactly. Right now the housing is still trying to find it's bottom, the sharemarket is in between so what does that leave us with???

 

[Realist]

Realist,

For the part I've put in bold, could you explain that please?

How do you think you can do better out of shares, when you won't use any leverage?

Shares including dividend returns outperform and will continue to outperform house prices IMHO. And the stress and effort involved and the risks are less than owning a property. People may baulk at the idea that property is risky, but leverage works both ways and there are alot of people who've lost money, and have negative equity in property recently in Sydney.

I am not totally against leverage, but I have not used it and will not use it at the moment. Much like I am not totally against buying an investment property, but I would not buy one now.

 

[Realist]

Exactly. Right now the housing is still trying to find it's bottom, the sharemarket is in between so what does that leave us with???

How do you know the sharemarket is in between?

That is the key point you see, you are just guessing. I happen to believe the ASX will be up a fair bit over the next year, and I believe property will be down.

Still I've been wrong before...