no boggle eyed spittle spraying please, page-52

Good post Bleasby.

Most (Not all) small residential property investors I talk to are best described as financially illiterate. Even when they buy, rent then sell a property they cant even calculate what their actual return on investment was. I hear it regularly, bought for 200k, sold 3 years later for 400 k, made 100% profit.

I live in Southern Perth. House prices in all the near suburbs have been stagnant for 24 months now (REIWA figures)and I cant ever recall seeing more "for sale" signs than at present. Land developers are now offering 10% discount.

In WA, as far as housing is concerned, we dont have a mining boom it is actually a mining construction boom. If new mines are not developed then unemployment here will skyrocket (for every 1000 jobs to build a new mine it will only need 100 jobs to run it).

For the reasons you mention I think a lot of small investors are going to learn some hard lessons.

Neil






Neil