The future of Australian property prices

[CanOz]

Initial purchase price $ 90,000-- 1996
Rent return $17500 a year. $ 19.4%/yr
Not to mention the 400% capital gain.
Oh and that's one of them.

Best one returns 23% is owned by my superfund.

Banks love house equity for collateral.
This is where I stop.

Going any further is way beyond the capacity for
The original poster to comprehend let alone
Understand.

thanks Tech, appreciate your perseverance.

I notice you still let the odd poster get under your skin....!

Seeing you still posting when i came back encouraged me to stick around...it just wouldn't be the same without you here.

Cheers,


CanOz

 

[Starcraftmazter]

Initial purchase price $ 90,000-- 1996
Rent return $17500 a year. $ 19.4%/yr
Not to mention the 400% capital gain.
Oh and that's one of them.

Best one returns 23% is owned by my superfund.

Banks love house equity for collateral.
This is where I stop.

Going any further is way beyond the capacity for
The original poster to comprehend let alone
Understand.

Yield is not calculated on a historic price, but on the current market price. This is done for reasons which should be very obvious to you.

 

[Ves]

Yield is not calculated on a historic price, but on the current market price. This is done for reasons which should be very obvious to you.

Why would you do that? Considering that in order to shift to another income stream (into another asset class) you would need to first pay capital gains tax, agent's fees, legals fees, and all those sorts of things. I would say at the very least you would calculate the yield at the net realisable value after costs.

 

[CanOz]

Yield is not calculated on a historic price, but on the current market price. This is done for reasons which should be very obvious to you.

This is interesting....i see why the return should be calculated at today's valuation, but really its more realistic to consider the return on the actual investment than the hypothetical....its like mark to market on steroids....

I'm getting deja vu from 2008 here...

CanOz

 

[tech/a]

My apologies a correction.
Initial capital invested in the property was $20,000
So return on investment 1800%. Now worth $360,000
So return on investment /year is around 85% from rent alone.

Back to it.

 

[Glen48]

Pure crap because you haven't sold it yet which you should do and take your money off the table.

 

[tech/a]

Pure crap because you haven't sold it yet which you should do and take your money off the table.

Sorry I'll rephrase that to appease you.

Currently---- blah blah.
The crap can you just point that out?
As it's just the current liquidated value.
Just like a stock holding with open profit.

Strangely banks calculate open equity--- a fair % of it as capital.
Why would I forfeit 85% return on capital a year?

 

[Glen48]

I looked up greed in my dictionary and saw your photo, no one is worried if you made X % to the power of 10 profit, all we (SCM et al ) are saying there is crash coming be ready, only you can chose when to get out its called the withdrawal method.

 

[Dowdy]

LOL WayneL ...... Big diffference from building 200 apartments in Spain compared to knocking up a strata title 10 unit development in a safe as suburb !! Or putting a speccie on the market in a well heeled division with proven sales evidence !!

You want a 200 apartment building? Go to Richmond. There are at least 4 multi-unit apartments going up there within a 2km radius

Exactly.

However the <30 yr old armchair economists with < a deposit to buy a car who havent been to Europe or US let alone developed anything bigger than a cold---know better---err profess to know better.

Which economists are you talking about?
The Economist magazine?
Marc Faber?
Even Glenn Stevens has warned about reckless investing in the RE market


But hey, I guess you would know better since you made your millions in property...

 

[trainspotter]

Here we go again. ...... ZzzzzzzzzzzzzzZZZZ. ... Dont feed the trolls tech/a

 

[tech/a]

You want a 200 apartment building? Go to Richmond. There are at least 4 multi-unit apartments going up there within a 2km radius







Which economists are you talking about?
The Economist magazine?
Marc Faber?
Even Glenn Stevens has warned about reckless investing in the RE market


But hey, I guess you would know better since you made your millions in property...

No
Closer to home
They are right here on this thread.

 

[Julia]

Pure crap because you haven't sold it yet which you should do and take your money off the table.

Can't you make your point without being so unnecessarily rude?

Dowdy, if you've been following the last several pages, it's pretty obvious to whom Tech's post was directed.

 

[trainspotter]

no bigger than assuming it will continue to go up jsut ebcause it has in the past

Show me where I have said this ridiculous statement please or are you trolling as well?

 

[DB008]

(Loving this ignore feature!)

 

[trainspotter]

That's fine, but obviously my question was aimed at the traders.

Why dont you try answering a few questions yourself for a change.

Like how much experience you have in property and why dont you post up ypur trades Mr. "I never lose and it is easy"

 

[Julia]

Why dont you try answering a few questions yourself for a change.

Like how much experience you have in property and why dont you post up ypur trades Mr. "I never lose and it is easy"

You know the answer to the above, TS/

 

[Beej]

Banks love house equity for collateral.
This is where I stop.

Going any further is way beyond the capacity for
The original poster to comprehend let alone
Understand.

Yes - this is a KEY point that "some" here do not understand, at all. ;-)

 

[young-gun]

Simply a cost of doing business.
We just claim it.

Just as we pay for brokerage slippage and tax.
Cost of doing business.

Something you'll understand when you actually DO SOME!

For the last time, a negative view on property is absolutely no reflection of character or work ethic. I guarantee you I work just as hard as you do(and for alot less money)so dont go making personal assumptions.

Both you and train think you're the bees knees of Re investors. I hope like all good business men your business model has acknowledged a crash is possible and you have a strategy to cope with a real crash.

I'm poised and ready to jump in at any moment. And could jump into something in a month. Are you ready for a crash? You will both most likely 'sit on the sidelines' as your portfolio falls by 30%+ as your views are far too stubborn n biased. Unlike you both I can accept I may be wrong.

 

[young-gun]

Show me where I have said this ridiculous statement please or are you trolling as well?

So you think prices are to stay stagnant for.. 20 years? I'm not going to read over your property posts as 50% of them are attacks on SCM and your noticeable issue with engineers, and I have some water skiing to do;-)

It's just a forum.

 

[tech/a]

For the last time, a negative view on property is absolutely no reflection of character or work ethic. I guarantee you I work just as hard as you do(and for alot less money)so dont go making personal assumptions.

Do some business as opposed to work.
I feel my assumption stands.

Both you and train think you're the bees knees of Re investors. I hope like all good business men your business model has acknowledged a crash is possible and you have a strategy to cope with a real crash.

Thanks for your concern
Yes some holdings have been liquidated to freehold others.
In downturns cash is king a debt is the devil. The other long term lurker is possible inflation. With it interest rate rises. Something highly geared investors don't want to be caught with. So yes risk mitigation--- for me at least is a top priority--- with all investing.

I'm poised and ready to jump in at any moment. And could jump into something in a month. Are you ready for a crash? You will both most likely 'sit on the sidelines' as your portfolio falls by 30%+ as your views are far too stubborn n biased. Unlike you both I can accept I may be wrong.

Strange comment--- on the one hand you " could jump " at any minute but onthe other your warning me of a 30% downturn in my holdings?

This has by the way happened on some holdings.
Not a game breaker due to time of entry.
However if you were late on the scene or hadn't calculated it in your development
It would be painful.
My latest is less than perfect.
The drop in R/E prices has left me with a lot less profit than I could have had in the past.
But like a trade--- you'll get some great trades and some not so great.
Business ---- pure and simple.