property market

[Jovial Monk]

I do too. I also got told I pulled an “all nighter of trolling” because of one post.

Few of us pay any attention to fantasist (and likely a bloke) Lying Lisa.

[Nom De Plume]

Hi nom de plume

Thanks for the comments. I don't plan on selling as I'm quite content so ill live with what I've got and keep the cash for spending on the boat.

Kitchens go out of date so quickly...

There are a lot of "investors" that owe so much money and have so little equity that a crash will certainly burn them by the thousands...

Everyone is investing with cheap debt... but you are right, at some stage, when the fed finally raise interest rates, the market will correct itself.

Thought I would bump this, as it could become an interesting thread...

And when the market corrects, there will be many renters suffering.

[Trevor P]

I do worry for a lot of amateur investors who are dabbling in things they don't understand.

investing in Sydney property is a dangerous game at the moment.

[J o h n S m i t h]

Stop foreign investment in commercial, agricultural and residential property, especially the Chinese grab for residential properties.

that won;'t stop shit. Foreign investors are only a small part of the market. If you want to stop the continued rise in prices you need to build more houses annually than what are being bought. I'd also limit negative gearing laws to one property. It's ridiculous that people can own 20 properties and pay no taxes. They're the ones pushing up prices as they can afford to pay more than the first home buyers.

[J o h n S m i t h]

Really, that's interesting.

Always good to have someone with knowledge about such things on the board.

Lisa and I seem to share a bit in common.

he was being sarcastic ..

[Outlaw Yogi]

How are our children supposed to get in with prices as they are?

They're not (supposed to)

Does anyone have a solution for this?

Deflation .... or dare I say "crash the system"?

Of course that would be cutting my own throat/shitting in my own nest ... my father's bought 3 houses in the town closest to where I live (about 20km from my place).

The bubble's gotta burst some time.
Property market's not the only bubble I see. Conditions for the GFC are back but bigger.
If the internet/WWW crashes (solar flares, Chinese/Ruski hackers ?????) crypto currencies will evaporate.
EVs and the insane share prices for Tesla (a company that never turned a profit - relies on subsidies) to me looks like a rerun of the DotCom bubble.

[Super Nova]

When it all pops it going to be a depression or at least major inflation leading to depression for many as countries now feel the only way to solve problems these days is to print money and prop-up those that caused the problem in the first place.

[Valkie]

My eldest and her husband have been investing heavily for the last 20 years in housing.
At last count they had 15 properties and without putting in one cent they buy houses now with the rates of the others paying them off in record time.

But she isn't greedy.
Her aim is, at 40, to retire comfortably in 4 or 5 years on the income from the rentals.
She is well on the way and will retire on a very generious income regardless of the market.
Because she will rely on the rent, which is virtually guaranteed.
She bought very carefully, based on future rental needs and work available in the area.
Usually it's only days between tidying up a place and putting it up for rent, before she gets a renter.
She carefully screens renters ( even though she uses a real estate agent, or agents) and monitors them regularly.
The first place she rented out was nearly destroyed by some dead beat renters. We spent three weeks fixing it.

In 4 or 5 years she will retire with her husband and enjoy the fruits of their labour.....good on th em.

[J o h n S m i t h]

The bubble's gotta burst some time.

they've been saying that for 50 years

[Outlaw Yogi]

The bubble's gotta burst some time.

they've been saying that for 50 years

I do get/understand your point, but being a history buff I know nothing lasts forever.

And in 2008 "they" got it right as far as the US went.
Remember the GFC?
Apart from a dodgy credit/mortgage regime, the biggest contributing factor was 'property speculation' - that is people kept paying ever increasing prices because they expected to make money through inflation.
The result was hundreds of thousands if not millions of Americans posting the keys to their recently acquired home to the bank and living in their car under a bridge, because they owed more on the home than it was worth in a crashed market.

In the current Australian context, it's a result of people - "running for the hills" - getting out of the cities to escape the confinement of Wuhan flu lockdowns. Property values in towns and regional cities now remind me of Sydney 20 odd years ago.
I live in the middle of nowhere, where property values remain stagnant for long periods and the properties take years to sell.
That's all changed now. Blocks in my area are going off like hot cakes with new houses and sheds popping up all over the place, and the amount of people turning up in buses/coaches is incredible.

My father's made a mint off property speculation. 30-35 years ago I said "If I ever win the lottery I'll buy a block of units, live in one and rent the rest (aspiring to be a slum lord), and the old man replied "don't buy residential" ... (Back then he stuck to industrial sites - factories, warehouses) ... "buy factories because they can make it dirty, but they can't wreck it. Houses get damaged". Later on he got into rural properties. Now he buys houses.
I mentioned his "don't buy residential" advice all those years ago recently, and he replied "These days it's worth it".