ave loan size, page-33

Warnie


just a story nothing more, but shows how different things are now


I remember my dad calling bottom on the housing market in the end half of the 90's said it was time to get another house, just a little one..

bought a investemnt property for $80,000 perfectly good 3 bedroom house.. nothing wrong with it,

He told me only worth holding for 5 years so took out a interest only loan cost him $100 a week, which he rented out for $80 a week, no real estate agent just did it himself.


so all it was to him was a $20 a week expense to hold onto that one house, any work needed doing he went over and did himself to keep costs down.

sold it 5 years later for $160,0000


what he drumed into me was, you do this to make money, not to buy the house, and not to hold onto long term thats not what its about.

everything goes in cycles, property is the easiest investment to follow. only ride up trends, buy when its low and get rid of it in 7 years.. if its not low look at something else. it doesnt have to be property every year there are other ways to make money.


but point is, there is no way for $20 a week you could do this now.. it shows how expensive property is at the moment.

everything goes in cycles, not up up up up up

thats the point, invest in things when they are under valued, when its over valued find another game