Does growth always follow high yield?

Discussion in 'Investment Strategy' started by ej89, 1st Sep, 2015.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Its not rocket science it is counter cyclical investing. Or as share boffins call it contrarian investing. Buffetology etc etc. Be greedy when others are fearful and vice versa. The trick is actually having the guts and discipline to do it. Its much more tempting to chase the current boom wherever that might be for instant double digit returns and admiring friends at dinner parties. Actually buying low in dead spots when they are out of vogue is hard to do not technically but psychologically.
     
    Tekoz, juzzy, HUGH72 and 3 others like this.
  2. Chris White

    Chris White Well-Known Member

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    Do you have some more info, what was the address.
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Are you saying Elizabeth has gone up? :eek:
     
  4. See Change

    See Change Well-Known Member

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    Nice article Chris , and one way of looking at things .

    For those who pick examples of remote / dying or one industry towns as an argument against the theory , there a simple solution .... Don't ..

    I've always avoided places which don't have a balanced / diversified economy and then start comparing those .

    Rather than looking specifically at yields , I look at capital growth , or too be specific , lack of it . I've always found that the capital city with the lowest ten year capital growth is a good way to look at things , though essentially , you'll end up with the same result .....

    Same counter cyclical argument that's already been mentioned .

    Which at the moment is Brisbane :)

    Cliff
     
  5. Chris White

    Chris White Well-Known Member

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    Spot on, if investors did this in conjunction with paying attention to historic yields for an area, overlaid it with fundamental research and ditched the mining areas and far flung towns as options then - happy days!!!!

    Better snap up all the buying opportunities quick before everyone gets onto this....;)
     
  6. See Change

    See Change Well-Known Member

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    Doing so as we talk . Though APRA changes are going to limit our ability to buy whole suburbs .....:rolleyes: , well whole streets .

    For us the main impact has been that we are having to go 80 % LVR , so with wanting to keep a healthy buffer , we getting towards the end of our buying .....:(

    Oooo . My 500th post ;)

    Cliff
     
  7. Azazel

    Azazel Well-Known Member

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    This is all good stuff.
    Can seem a bit daunting buying somewhere that is all doom and gloom, but if you do your research you can definitely find some good buys this way.