Been interesting reading from all quarters the last few weeks and months.
A few that have read my posts would know how I feel towards this. Mind you it does help that I sold out about 3 years ago from the top of Kirra hill here on the Goldie.. So I would say Toppsih..
Then before that I sold out of Mermaid beach on the way up.. So the last few years have been a waiting game for me..(Chippy by trade).
I suppose for me it was when all my builder mates that were doing the canal reno's were starting to run out of steam that we all started to theorize on where it was going to end up.. This was even before the rout had begun.. So in a nut shell, you could do a job on a canal property for say... buy @ 360ish-400ish.. spend @ the most 100g and put it on the market for 900-1.2m depends on where you were and what you did to it.. easy money if you knew the game..
Most the guys I know doing this have been out of it for at 4 years minimum as there was no margin left.. Those with balls moved on the top end.. say.. buy in @ over the 900's-1.6m and look for the 2's,3',4',5mil's.. some did well some left it too late..
As an example.. one went to auction a few weeks ago.. 12-15 months ago he would have got high 5 mils.. it hit the books @ 2.6m and he was lucky there was a china man in town that brought for 3.8mill.. Profit.. around $200g.. Risk verses reward.. humm.. lucky to get out with the skin still on.. moral of the story.. Got 2 more blocks will let them sit..
Banks aren't touching finance on negative gearing..3 out of 5 sales are getting knocked back on finance.. When you need to have 2 per week to break even, this becomes scary as you are just spinning the wheels..
RE: Rents & yields, long term and if you are not over extended these are fine.. but if you have borrowed and negative geared.. humm, I would be sweating a bit.. interesting that the realo's have gone quiet on the ques to rent apartments and the great rent boom that was suppose to happen..
I'm looking towards the UK for my clues.. and it doesn't look good.. Rising rents but no buyers.. No buyers??
""The expectation of a forthcoming recession and rising unemployment will further undermine demand for housing and continued price falls are inevitable in the months ahead," said Donnell."
Still looking at this site, then you got to wonder..
http://www.housepricecrash.co.uk/
Gives me a 50/50 chance that we are going to go backwards for some time yet..
I noticed big headlines this weekend.. "Freeze on hiring" & opposition calls for "cut backs in the migrant intake" here in Australia.. So I suppose the next graph to watch is the unemployment rate..
Believe it or not I am positive about all of this..As the saying goes.. no pain no gain.. and for our children's sake, this generation (meaning us), need a little pain to bring us back to reality so that they can look forward to maybe having a chance of buying in their life time..
Otherwise we are going to have the great divide of the "Have's" and the "Have not's"
O don't even get me started on the greed of super funds (The likes of AMP, Centro, Westfields) and shopping center rents.. have any of you tied yourself in the a center lease.. Humm.. scary.. There you go..
