79% of Investors Would Abandon Property if Negative Gearing Scrapped

Been hearing about the bubble for a long, long time. And in that time I have built..well.. lets just say continued wealth.

If the property markets ever have a drastic change then I will learn to adapt with it. Btw there are risk mitigation measures and other strategies to emply to reduce risk along the way, as all investment vehicles face challenges at some point in time. Many of the words greatest investors went though very challenging times and manage to survie and then thrive.

I'd rather take my chances with a 'catastrophic bubble' than work until I'm 75 only to retire on a pension that would decimate me anyway.

I hope your around this forum in say 10 years so we can discuss this again.

 

Spot on, none of the investing concepts mentioned above are rocket science, whether it be shares,property, business. The same basic principles of risk/reward-commonsense apply. I think peoples comments on investing in equities is a little skewed, There is a world of difference between investing and trading(speculating).

My personal view is investing only in property is high risk, therefore i mitigate the risk by investing in equities. By accessing this investment class i gain the advantages of liquidity and exposure to economies outside of Australia. I also don't stare at charts all day, my portfolio allocation is set up in "assets" not trading ideas. As Quoted by Buffett “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

 

Might be of interest A short-sellers guide to the Australian property market

 

While on the subject of shorting for those that haven't seen "The Big Short" i cant recommend it enough.

 

Thanks, I know how to short the property market and I'm doing it successfully. But I'll have a look, thanks.

 

79% huh....beauty....more for me to pick up cheap.

Don't believe it but feel free to sell now and be "ahead of the curve".

 

Hasnt the US housing market mostly recovered since the GFC? What happened to rents?

Even if we have a crash, if rents dont fall dramatically I can hold on forever. Negative gearing, whats that?

 

The us market is higher than what it was when it crashed... And no inflation in that time so in real terms the owners made their money back within 10 years.