different story for home buyers and investors

  1. 26,652 Posts.
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    For home buyers, who are looking to purchase and have somewhere to live, the criteria is not nearly as strong as for investors.

    If they pay a bit much because the love the house etc, its fine they will stay for 30 years , things will iron itself out in the long term, however......

    for investors, the idea of investing is to make money!!!!

    In the short term, not many properties are positively geared, if anyone can show me one for sale that is it will be a first for a long time!!!

    So if its not actually making money, its costing money...thats not investing...
    So the investor has to recoup all buying, selling costs, all the money they tipped in along the way. before they break square , let alone make money.

    At the moment you can get 7% on your money in term deposit, NO RISK, No FUSS...so the return on the property looking forward..(not looking back at history, thats the past) we need to look at the possibility of what can occur??
    If rates go up, will that dampen property purchases? Mean more tip in for investors( means more to recoup)..
    Do the sums people.. as I said for as live in situation its far different than investment.. people are getting it all mixed up.


    Investing is purely return on investment..nothing else, no emotion, its maths.

    I expect a huge number of thumbs up for this well written bit of property talk..plus all the links to the positive geared properties for sale..lol

 
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