Don't Buy Property in 2019

Discussion in 'Property Market Economics' started by MTR, 23rd Dec, 2018.

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  1. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    That's just inflation. Property was considered very expensive back then as well.

    You are right that it is more difficult to pull together a deposit these days. But the converse to that is, it is easier today to make your repayments once you have made the purchase, than it was back then.
     
  2. Someguy

    Someguy Well-Known Member

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    If the picture is actually what she bought then it appears to be the new apartments overlooking the busy James ruse drive in north rocks (not parramatta as reported). Not a great location traffic can get very heavy around that part of north rocks Rd, limited transport options. Only saving grace would be if it zones for the primary school someone might rent it to dump there grandparents in and use the address for enrolment.

    Not the wisest investment but she is a really great example of a younger person getting out there and making it happen. Many her age are whinging that it is impossible to buy anything. Good luck to the girl hopefully she gets good tenants, builds equity and builds up a solid portfolio.
     
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  3. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    I agree. I don't think it's a story of property savvy. It's more about tenacity. Well done.
     
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  4. Woodjda

    Woodjda Well-Known Member

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    I genuinely feel for her because she's clearly worked hard. Unfortunately she's thrown a good chunk of those savings away on a bad decision with very little chance of it ever coming good.

    This should be a story about how hard work can give you financial independence but leveraging yourself into a bad investment can lead to big losses. Instead the media (probably paid by the finance company mentioned at the end) present it as a story of success which anyone who can do basic maths knows it's not. I genuinely feel for all the young people nowadays who are being conned into making these sorts of bad investment decisions all so big business like the banks, developers, builders and the real estate industry can make out like bandits. If it all goes belly up it'll be people like her who will suffer the most.
     
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  5. neK

    neK Well-Known Member

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    She now works for Zinger finance.... isn't that part of NBirch's group?
    I'm always skeptical of why a person's current place of employment is listed there. There's not really much relevance, so im guessing its a semi infomercial.
     
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  6. mues

    mues Well-Known Member

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    This is kinda like how people who invest all their savings into the Share Plan of the company they work at. If the company tanks you lose your job and your savings.

    I know there is an investing strategy that says diversification is the devil and only invest in a few quality things you know. Then there is putting your whole life on Black and spinning the wheel...........

    Not my cup of tea.
     
  7. dragon

    dragon Well-Known Member

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    She is the good example of next generation savvy investors!! I am thinking how many of them we have in Sydney & Melbourne..

    If you don’t see positive cash flow and capital gain in next 5 years ( thats not short term) how do you make decisions to invest in them. Who fails in this maths will pay their hardworked money. Its a good lesson with big price tag.. all the best
     
  8. Whitecat

    Whitecat Well-Known Member

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    Thanks for answering on my heart I totally agree she would have been better off forfeiting her deposit the next five to ten years are going to be a disaster for her looks like the person who replied above totally missed my point
     
  9. Whitecat

    Whitecat Well-Known Member

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    Yes seeing as I was the original commenter I would just like to clarify my position here I am not in any way criticizing her and perhaps that wasn't clear I was more criticising the media who are using this as an example of a possibly a good investment. The same sort of media that touted these junk apartments and the people have been warning about on here for years. Good on her for saving hard and trying to move ahead but it's just ironic that she bought the worst possible thing at the worst possible time
     
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  10. Oliver Shane

    Oliver Shane Well-Known Member

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    Feelings schmeelings... if unemployment keeps rising, and credit remains tight, all the positive feelings from property investors won’t matter much if ppl don’t have wages to support growth.
     
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  11. Codie

    Codie Well-Known Member

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    Sure. Goes without saying. However the “group” of people I’m talking about are the majority and is 65-70% of the market.

    investors are only 1/3 and whilst they support the market with demand, don’t drive prices. Emotional buyers do.
     
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  12. MTR

    MTR Well-Known Member

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    Last time I looked downturns last much longer than when markets are booming

    Its not been long
     
  13. MTR

    MTR Well-Known Member

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    Oops, did I give the wrong advice...... egg on face:)

    Did anyone buy in 2019 ..... and got a nice surprise

    Definately strange times
     
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  14. Shogun

    Shogun Well-Known Member

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    Are there any real "drivers" in Sydney and Melbourne or is it just Fomo?

    Was probably good advice for a lot of Perth
     
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  15. sash

    sash Well-Known Member

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    This is being driven by low rates..I have made another 500k across my portfolio in 3 months..but I am not silly enough to think it will last.....;):p
     
  16. Silverson

    Silverson Well-Known Member

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    After entry costs etc are factored in a lot of the shine is taken off property, also all these people getting excited over a higher median need to also take a step back and analyse what and why has created this. the obvious is lower rates/lending but the not so obvious and the real impact on blanket median prices are the quality of homes, in the last 3-6months there have been more higher end homes for sale both across the state and suburb specific.
    During the lull we just experienced there were not many homes for sale in your Albert/Middle parks, Carlton, Hawthorn etc as in boom times and the properties that were being list3d were your humble family home or townhouse/units, in the past few months there have been far more higher end homes/sites listed.
    We are still a way off pre correction euphoria in my unedumecated opinion.
     
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  17. MTR

    MTR Well-Known Member

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    Interesting......Those damn stats
     
  18. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Freeloading is hardly a success story.
    Sadly the headlines don't reflect she can't afford the property she bought and it's bait for enticing other younger people to do similar. Pity the poor tenants if a larg(ish) bill appears. They'll be waiting a long while for her to repair it - or the parents will need to stump up to help out.
     
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  19. Traveller99

    Traveller99 Well-Known Member

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    I bought recently, but still somewhat perplexed by the market in that some places are quickly snapped up, but others languish on the sidelines.

    This (31 Shelley Street, Elwood VIC 3184 - House For Sale | Domain)
    property recently passed in, was re-listed at 1,595,000 and has dropped to 1,495,000. Going from recent sales, this place should be commanding a higher price.

    Any thoughts on why it hasn’t sold and price dropped by so much? Flood zone? Problems with home?
     
  20. Curious2019

    Curious2019 Well-Known Member

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