Billy GatessI do not personally know anyone who has ever lost on...

Billy Gatess
I do not personally know anyone who has ever lost on property. Everyone I know has done very well, whether it is their own home or investment properties.
I am sure there are people who may have made a loss for all the reasons there are, life events misfortune etc.. forced sale.

I know a big property developer here in Melb, who simply takes his properties off the market when the hype is about a downturn. They are not for sale, or his prices remain the same. He does not put himself in a position for a forced sale. The market always comes back and rises.

Others I know never sell property, they only buy it.

I know someone who did buy at the higher end of the market in Melb in 1989, at 1.2 mill. Agents tried to convince her to sell Dec 01 for about the same price,
that property is now worth about 3 mill. Even if it dropped 20% the property has still doubled in value.
She is a long term investor, no intention of selling.

I think part of the correction that is happening, is the fact our 2 most popular cities have so much to offer. That benefit comes at a price, and there are plenty of people who do have the money and are willing to pay for that lifestyle.
The ones who cannot afford the prices will have to go further out, look elsewhere. That in itself raises the prices of the outer suburbs.
You get what you pay for.
I am an inner city person, everything is here. I save on travel so can afford to spend more on housing and lifestyle. I have more time for life, work and investing instead of travelling.

There is plenty of land available which will be developed in the future to satisfy the housing needs. Australia is a big country. Land of opportunity, and plenty of that available.

Our interest rates are still high I believe compared to the UK and US. And years ago the banks used to charge a higher rate if the property was for investment purposes.

I know a lot of young 30y'ish somethings, they spend a large amount of money on lifestyle, big disposable incomes, they do not want to give that up, but not prepared to go into the market. They say they want to get into the market but are not prepared to save or reduce their spending. They cannot see they cannot have it both ways. These are the ones who will pay the rent. They are also counting on their parents to come good with property on inheritance.

I bought several properties within an 18 month period, so I am not subject to having all eggs one basket. ie all my money in one property.

I bought a property, 2 shops downstairs and 2 one bedroom units upstairs. After renovations and strata
I will have 4 properties from 1. If I got into trouble I would only need to sell 1 of the 4 and I am still in front.
Oh and big name supermarket moving almost next door now, they took over a bottleshop and petrol station opposite.
Location location location. The town was growing and I saw the direction, it could not go to the east, river in the way, so I bought on the west end. unloved at the time, but now the place to be.

Another pair of shops in another town, single story.
I intend to extend upwards, bring in more rent either offices or residential. I watched this space for 4 years, was the dead end of town, now it is all cafe society, buzzing.

I cannot get enough of property. Just time consuming haggling with everyone to get things done on time.

My personal views and experiences only, takes a lot of time and research, long term investment. You have to do your own research, form your own views. Do not listen to me.