Don't Buy Property in 2019

Yes i understand this

But the playing field has changed, as per my links

Government policy has changed making it difficult for foreign investors

Australian property market has gone from boom to bust. This puts their capital at risk

We already have oversupply of OTP product accross Australia

My g/friend had 2 foreign investors not able to settle.....we will see more

My point is dont bank on foreign investors to save the day. On the contrary we are seeing opposite, retraction

 

Awesome post. There is something to be said for the thinking that IPs are ‘good’ (deductible) debt and PPORs are ‘necessary’ (non deductible) debt - no use spending money hand over fist for a PPOR that doesn’t make you any money.

Edit: Sorry to hear you’re splitting up. I wish I could advise you on this side of your question, but sadly I can’t. I’ve been there a few months ago, it sucks.

 

The Mornington Peninsula is a good area to buy in 2019 as it has been in previous years.

Peninsula market well-positioned for summer 2019

Top end of Mornington Peninsula market powering on in Mt Eliza, Mt Martha, Flinders and Shoreham

‘Exciting’ summer on Peninsula after Portsea auction tops reserve by $500,000

Property experts also believe that the Mornington Peninsula and Greater Geelong will be hotspots in 2019

Blue-chip postcodes also hit new heights such as the Mornington Peninsula’s Arthurs Seat and Flinders by bucking the cooling market trend in Melbourne

 

So what happens when they find the US no longer attractive? What happens if they start putting restrictions like Canada..UK....NZ.

I personally feel that the US maybe at the top of the cycle now.

 

No idea, its not an issue for me either way.

With regards to US, its not only China buying up, its foreigners around the world

not sure about Canada UK ? I think NZ may already have restrictions??

 

Parts of Canada have restrictions so does UK/NZ via tax.

The US has cycles like Australia....every couple of years the market there corrects.

I personally am looking to downsize my portfolio and balance with some equities investments.

You don't want to be dealing with maintenance on over 20 properties whilst in your 60s....you want to enjoy!!

 

Yes.... passive income with no headaches, sounds good

 

Hire your own Property Portfolio Manager and enjoy the best of both worlds .

 

If only......not everything stays the same.....Managers come and go....quality varies....

I have read that even massively wealthy families have issues with this.

 

Just like hiring employees. In my experience, some are good, a lot are not.

Just gotta keep trying until you find the right one(s).

 

Too much work........ remember I am lazy.......a siesta sounds much better.... zzzzz

 

One of Australia's largest real estate research companies has forecast an end to Sydney and Melbourne's price decline in 2019, with most capital cities forecast to deliver solid price growth next year. Domain predicts solid growth in 2019

 

Its very much dependent on whether lending policies ease imho

 

With Melbourne and Sydney both seeing house prices doubling over the same period that wage growth dropped by about 50% especially in Sydney there is a strong possibility that house prices became over inflated, based on incomes , now that the banks are being forced to look at spending more throughly, you might see a few good years of negative growth.
You only need 2 people at an auction during boom periods using IO loans repayments that could push the sale price 20-30% higher and everyone else has to ride the same wave.
In a downturn with a big clampdown on lending , the market could be overinflated by 20-30%

 

Absolutely agree, lending/credit is the main driver of booms and busts however, I think we also need to take into account sentiment, there's a gentle haze of negative sentiment towards housing as an investment at present, I have no doubt once lending loosens prices/speculation will once again rise however it may take a little longer for this to occur due to sentiment.
This is across the board I feel, look at the forums as an example, hardly anywhere near as much activity especially in other asset classes. This Christmas is the first in about 10years where there wasn't talk of investing (family beating their chests) etc.
I feel most investors are at a stage where they want to live a little now and spend on living! Even younger ones.
This could potentially be the time to go in hard however, you know go against the heard and all that!

 

I think there are many investors treading water

 

I think think as well.

I also think that will drag Aus down another leg.

Best time to clear debt and gear up.

I am watching the US with a great dose of interest.

 

I just keep buying, if you are cashflowing from day 1 it certainly beats Oz returns, 3% yielda, and no growth

 

The issues that I have with the US are:

- the difficulty in getting finance for us plebs who need mortgages on our properties
- the difficulty in adding value from so far away

Any workarounds?

 

Just renovating a property in Atlanta after 7 years tenant moved out

Have a guy That does all my maintainence etc
He should complete reno in 2 weeks, $7k

I paid $42k for this property renting at $1000 per month.

I will get $1300 per month today.
Value tiday $160k

US not without challenges but been in this market since 2011, 20 properties now in US

I know at least 4 investors who have taken loans in US, wish I did, hindsight is a good thing