I have given up buying a house

[cuttlefish]

Well a crash would suit me fine. Can't see it being possible though.

you won't buy if the housing market really crashes.

 

[Realist]

you won't buy if the housing market really crashes.

What the?

What do you base that on? Or are you just baiting me?

You know I top up on dips Cuttlefish!!

I will have a field day during a crash. Value investors always do. I honestly can't wait till the next ASX crash or a house crash (if it ever happens). I'm chomping at the bit for one. The sooner the better. I want interest rates to soar and mortgagee sales aplenty. I want CBA to dive to $10 even though I own it. the cheaper the better. (yes I have cash now ready to buy - always do)

If house prices crash, I'd probably mortgage myself to the hilt buy as many properties as I can and even give up work to become a property developer. I would love it!!

 

[cuttlefish]

There's a lot left for you to learn about your own emotions and market psychology. It's surprisingly difficult to overcome negative sentiment and back yourself against the crowd.

 

[Realist]

There's a lot left for you to learn about your own emotions and market psychology. It's surprisingly difficult to overcome negative sentiment and back yourself against the crowd.

I totally agree.

But having seen what I post, what I do, do you not think that of anyone on this bored I am possibly the most likely to go against the crowd?

I take great pride in doing so.

 

[cuttlefish]

You may get there but at the moment I don't think that what you are doing is really going against the crowd that much.

Buying resource stocks on dips in a commodities boom, buying blue chips that are currently sentimental favourites, this isn't really going against the crowd to a great degree.

You also don't seem to have that much structure around your approach. When you really start to go against the crowd you'll need that structure to know whether to back yourself or not - because to counter your emotions you will need to have some logical basis to make your head go where your heart doesn't want to.

With smaller amounts of money its easier, but making large investments against the crowd is a difficult thing to do. And I'm not talking about going short when everyone's going long (thats a different thing altogether and would require impeccable timing and risk management),

 

[Realist]

You may get there but at the moment I don't think that what you are doing is really going against the crowd that much.

Buying resource stocks on dips in a commodities boom, buying blue chips that are currently sentimental favourites, this isn't really going against the crowd to a great degree.

You also don't seem to have that much structure around your approach. When you really start to go against the crowd you'll need that structure to know whether to back yourself or not - because to counter your emotions you will need to have some logical basis to make your head go where your heart doesn't want to.

With smaller amounts of money its easier, but making large investments against the crowd is a difficult thing to do. And I'm not talking about going short when everyone's going long (thats a different thing altogether and would require impeccable timing and risk management),

I don't totally disagree.

But the ASX is so small that you do not have too much option to go against the crowd. I suppose going agaisnt the crowd would be buying wine stocks, Telcos etc. I bought Fosters, no Telcos though - wont touch loss making stocks. Just unfavoured ones.

And the fact is it is hard to go against the crowd in a bull market - everyone wants to buy, and there's no point in you not being in the market so you need to buy as well.

When the bear arrives and others are selling is when I'll come into my own and truly go against the crowd. I admit now I aint going agaisnt the crowd.

 

[krisbarry]

I got my tax return back, and quickly depositied this into my super fund today, isn't it great to have a war...it just buys me more units in my fund.

 

[visual]

Stop,by going on what you are saying on the other thread perhaps if you looked to buy a house in a suburb you could actually afford, you wouldnt have to give up on buying a house.

 

[krisbarry]

I am living in this suburb by choice, and its free, so I am not complaining.

All the money I am saving by not paying rent is going into my super account, now that is wise!

 

[visual]

I am living in this suburb by choice, and its free, so I am not complaining.

All the money I am saving by not paying rent is going into my super account, now that is wise!

So either you are squatting,or living in some elses house that they have paid for,dont you feel a little embarrased to be living off some elses labours.

 

[krisbarry]

Not at all, its my partners place, no harm in that!

In return I do all the cooking, cleaning, gardening etc!

and I pay half for all the utlities!

 

[visual]

Ok but who pays for the mortgage?
and althought you do all the cooking and cleaning and pay for half of the utilities ,you`d have to do all that anyway regardless of where you live.

At the end of the day it isnt you who can afford to live there.

 

[krisbarry]

Ohhh Visual...the nit picker on this board, I should have known....there is always a nit-picker in every group of people!

I will comment no further, you will just nit-pick!

 

[visual]

Oh dear, so you can afford to buy a house,you simply choose to let someone else do that,so why didnt you just say that in the first place.

 

[visual]

This will be a hot topic....

I have been living at parents place - free rent, or my mates place free rent!

I have decided to give up on the Great Australian Dream, turn my back on it and deposit extra money into my superannuation.

Housing is the most un-affordable it has been in 20 years according to many experts.

The government gives first home buyers $7,000, but is very happy to take back up to 25% of total monies deposited into housing as taxes.

House prices are now stable, or going down, expect for a very small amount of suburbs in a few cities. So it does make for a bad investment in the short to mid term.

I am able to gain access to the free $1,500 super co-contribution, each year, and every year, so this will be over-time a better investment than the poxy one off payment of $7,000 for the first home buyers grant.

I have also decided on gearing my superannaution, which is exactly the same as buying an investment property.

and here are the returns...
1 Year % 58.66%p.a.

2 Years % 55.76%p.a.

3 Years % 55.76%p.a.

5 Years % 48.14%p.a.

7 Years % 21.07%p.a.

care to discuss?

And althought you think I`m a nit picker which is it,parents,mates house
or partner house,by the looks of it,you dont seem to take responsability for your own living arrangements,it seems that while you grow your own wealth ,someone else is always paying for your abode.

 

[Realist]

it seems that while you grow your own wealth ,someone else is always paying for your abode.

Sounds bloody good to me.

Well Done Stop_the_clock.

 

[blinkybill]

How many really successful and wealthy people don't own at least one home.

Buying a house was the best thing I ever did

 

[krisbarry]

Nothing wrong with a partner supporting you!

I provide: love, support, cooked meals, a clean house, washed clothes, a maintained garden, help with paying the bills etc etc.

In return I get a (free) roof over my head and a loving partner.

I don't see a problem with the way I live my life.

My partner just wants me to be happy and to save my cash, and that is what I am doing....it all goes into my super fund.

 

[Realist]

How many really successful and wealthy people don't own at least one home.

How many really successful and wealthy people do not own a fridge?

Did buying a fridge make them wealthy, probably not. Buying a house did not make them really wealthy either.



If you buy a house and its price doubles you are no better off, because when you sell your house you will need to buy another one, and guess what everyone else's house has doubled as well.

Next you are going to say - you are better off than those that did not buy a house? Really, then what are you doing on a stockforum? Both you and I know the ASX increases quicker than the Aussie house market. So not buying and investing can at times be better than buying a house.

I am not saying don't ever buy a house, what I am saying is fer christ sakes think and do the maths for yourself before you do, shares at certain times are a far better option.

 

[cuttlefish]

With smaller amounts of money its easier, but making large investments against the crowd is a difficult thing to do. And I'm not talking about going short when everyone's going long (thats a different thing altogether and would require impeccable timing and risk management),

When the bear arrives and others are selling is when I'll come into my own and truly go against the crowd.

realist, I just want to also add that the corollary also applies - i.e. I'm not talking about going long when everyone else is going short, which would be equally as risky a thing to do - particularly at the start of a bear market.

With countercyclical investing I'm more talking about investing in things that have cobwebs on them, and when you discover them and ask people about them the usual response is - yeah that old crap - useless - thats why its in the back shed with cobwebs on it.