Are we focusing a tad too much on BOOMS?

I think people have lost sight of property being a long term game

 

Would agree. Unless people are wiling to take on a lot more risk and put in a lot more effort, it's a long term game.

 

Jump in too late is often the case and selling too soon when things didn't pan out. Warren Buffett said "The stock market is a device for transferring money from the impatient to the patient". It even more true in realestate.

 

Fair and interesting advice, i think it the results in Sydney and Melb with ~90% price growth from 09 create this mindset. Realistically most homeowners in these cities across this period may have made more in property price appreciation than efforts from labor/salary/wages from this period. Naturally, humans tend to think if its happened here, it will happen again elsewhere. Hence the rising trend of 'buy big booms' and possibly a shorter term mindset to property.

Some of your methods @Leo2413 relate to skill & execution. It takes effort, time, skill, training & knowledge to purchase with that type of mindset and generate wealth. The majority are less involved day to day and would rather invest & hope similar results to Syd/Melb over the last 8 years play out where they buy. They'll do very well if that happens.

 

I completely agree as if we look at Warren Buffett as an example he bought Coca Cola shares and some other shares like insurance companies and defence when everyone was saying it was at a bad time to purchase them but he saw in in the long term potential, good business model, and the other opportunities associated with the purchase.

I have no problems paying abit more for a property if I see there are long term opportunities with the property because like most, I am not in the business of cashing in the property in the short term and flipping (btw not trying to have a dig at people doing this, but that's not my strategy).

 

And this is precisely where the market edge comes in for the players who are willing to invest some time and effort to get overall superior results. I think its quite similar to the stock market. I know almost nothing about the stock market but I do have some friends who have done exceptionally well over the long term, however they have invested a lot of time, effort and money to make it their craft and beat the average returns. It's pretty much, your degree of reaping will be determined by your degree of sewing.

 

Agree, its an approach we've built our whole portfolio on and works for us. Most of the places we bought were really above or well above the median price at the time, but we saw value in the deal. Price for us is only 1 factor to assess overall value. It's not THE determining factor.

 

I agree - really the "BOOM" is what you make out of it if you ask me.

going back 8 plus years ago I was playing the southbank apartment market in Melbourne. anybody who knows this knows is oversupplied. It is ranked as one of the least growth or NO BOOM. But I tried to think out of the square and made large net gain by buying selling and flipping apartments multiple times over the years. there was no "BOOM" there really just thinking out of the square.

as for this getting blocks which are high density zoned or near popular schools - is not really a boom strategy but just looking to get an IP that has more competitive advantage over the others.

as for Melbourne - is all subjective. Pt cook never moved till last year when supposingly the boom started couple of years ago. I know a suburb that was 400Kish in 2015, 600Kish 2016, 800Kish 2017 - and it could possibly tip over into 900K-1mil the year or next (as some ppl area already asking these prices) but nobody knows the peak as ppl though it was high already in the 600kish mark.

 

Great stuff. @melbournian, I think if people want better and possibly quicker results then less focus on trying to guess when and where is the next 'boom' and instead learn about 'add value' strategies. To be honest at the end of the day, there will always be those who are just better at business and this stuff comes more naturally to them. It's just the way it is.