Does overpaying in this market bother you?

I find this fascinating. My first ever investment property (and my worst because I didn’t know what I was doing then) was purchased in 1997 in a terrible suburb, at that time, for $115,000 which was way over its value. Five years later I had it valued at 105,000 and I thought, what have I done? 2002/3 was when the market turned around but it still didn’t go up much. Many a time I thought of selling but I hung on determinedly and still own it. It’s now worth close to $600,000. Not bad for the worst property investment I’ve ever made.

The moral of the story is that if you buy in a large capital city, you’ll do well If you are willing to hang in long term. Jan Somers, your legacy lives on!

 

depends how high the market goes, and what you feel will be the new baseline when things settle.

 

Correct.
IMO we are just starting to feel out where people’s capacity is at. Thanks to floating assessment rates during Covid everyone got a monster boost to capacity which is only now filtering through. We need to remember the market was basically at a stand still until late last year.

 

Yes, of course. It's an intentionally ridiculous example but still demonstrates the point that it is possible when many people take the view that it can never happen.

- Andrew