"it must have been 2002 over a period of 2months i watched all the home units,and i do mean all get sold,undeterred i bought the cheapest fibro home in my local area with approx. a 33% deposit after 2.5 years i sold to my neighbour providing a return of approx 63% above the original capital value,and a 75% return above actual cash employed including repayments,now that was excellent,the next one a townhouse was only breakeven after 5 years,i missed the lift by two months but employed the capital left after horrendous losses on the sharemarket,i recovered about 50% of my losses trading and 3 months ago bought a 1 bedroom unit in my local area,the rational here was affordability for single retirees or perhaps a couple on a limited budget as opposed to buying into a retirement village in my local area,a retirement village is a significant premium above my purchase cost and has inbuilt depreciation through capital contribution to the village fund when sold.
the up shot for me is ,i have security of tenure at approx. equivalent rent cost for a two bed budget unit in my local area,and still have capital to employ in the sharemarket,and i believe i might realise a small premium within 1-2 years,but perhaps a more saleable property in the sector i would attract considering it will be about 20% cheaper than an equivalent 2 bedder,ideal for any owner occupier looking for equity at low cost."
Proof we're in a bubble. Skyrocketing property prices are not normal. Someone elses debt was your gain. But it still has to be paid for.
