Don't Buy Property in 2019

A penny saved is a penny earned

 

This reminded me of a quote:-

“If I have a penny and you have a penny and we exchange pennies, we still only have a penny and are none the richer.​

But if I have an idea and you have an idea and we exchange ideas, we now both have two ideas and are both the richer.”
(I have forgotten the author)​

Ideas are more powerful than money .

 

Knowledge is a powerful thing!

One old man once said " Write a post for a forumite and they post once, teach them how to post and they will spam the hell of the forum".

Moral of this story? Knowledge is the best investment in ourselves, and giving information out can benefit people as much as absorbing it.

 

End of 2019 is when I'm pulling the trigger for the particular area and stock type im interested in for Sydney .

There are other suburbs/stock types I wouldnt bother looking at for few more years ( if i wanted to buy into them).

I personally think its important to look at what your specific target suburb and stock type is doing before you make any buying decisions and not just classify all of Sydney as a good or bad buying time.

 

Its only a paper loss, thats what they call it..... lol

 

People can always crystallise their “paper loss” into a “real loss” by selling if that makes them feel better .

In that way, they stop the bleeding and don’t need as much recovery .

 

Melbourne fell 1.7% on average last month, Sydney fell 4.5% on average for the quarter, these are figures are generalising, as I am sure you will find properties in both markets that would have gone up at the same time others went down.
Short term is speculating in my view and you need to be more careful with your timing. Long term is more forgiving and history shows desirable property costs more now than it did 10, 20 years ago.

Another thought or reason why property will go up in price is that the $$ dollar is devaluing. In other words it will require more dollars in the future to buy the same valued item as you would today.

 

Long term?
Perth investors would be lucky to get back its 10/12 yr old peak buy price, forget buying and holding cost, if one considers that, investor who bought then would be in deep red.

If you consider buying and holding cost, investors in Canberra Brisbane, adailade are not much ahead in terms of price paid 10/11 yrs ago.

If one earns in the same currency which is getting devalued it's meaningless, isn't it? except basic essentials cost more leaving less of saving, so unless you are expecting salaries to rise faster then the rate of davaluation it's pointless.

 

As I said before, you can pick out specific areas and time frames to see growth and in another see falls. We can't generalise. Here in Adelaide, one suburb has seen 6.376% average growth since October 2009 to October 2018, as per Corelogic's Change in Median Price (House) for St Peters. Compared to Christie Downs which shows 1.038% for the same period of time or we could look at Evanston Gardens in SA with a -40.62% for Oct. 2012 to 2013 and the a 49.21% growth in the next year.

What do you see inflation as? it can be the cost of goods going up or the value of the dollar going down. Another way to look at this is to see the value of debt over time. Someone takes out a mortgage of say $36,000 (80% LVR) against a home at that time (1987) worth $45,000, now that home would be worth $450,000 today. If the loan of $36,000 had repayments of just interest only, it would still have a balance of $36,000 today. Has the debt devalued or the home value increased?

 

Looking for growth areas in Melbourne? These suburbs are bucking the downturn (January 25 2019)

 

Anyone still think buying property in 2019 makes sense?

 

MTR they did not get it, people start suing the banks,that's why the banks dont lend
that much out any more.

 

I do. When it bleeds is the time to attack.

 

Right now is the bit in Braveheart when William Wallace says "hold... hold..... hold..."

We've just entered per capita recession according to today's GDP results

Anyone thinkin' greenshoots is in for a shock IMO

 

Greenshoots, don't see any quite frankly, ignoring the basic fundamentals on why the market has softened is akin with shooting yourself in the foot.

 

A key issue at some point in 2019 is whether the RBA may be forced to consider another interest rate cut if the slump in home prices starts to impact consumer spending and the outlook for inflation.

 

Got this lecture in 08 from a lot of people. Have no regrets.

I will try and find an PPOR that I can isolate and buy at a significant discount. When news is this bad sure the market may be down 10%. But you find the right place you can get 25% off already.

I’ve been waiting over 2 years for this. I won’t miss the place I want trying for get the absolute bottom - because it’s hard to find and once recovery starts the stock I’m looking at will bouce back fastest.

And before people step in here and lecture me. I lurked here for 18months before I posted. When I posted I was a market bear. 70% of people hung **** on me saying it won’t be bad or soft landing or market will continue.

Now I was right about the drop, 70% of people are lecturing me saying to wait because the bottom is years away. I wonder the cross over for those who told me to buy 18 months back and the people telling me not to buy now.

 

I gave no lecture, matey. Just a little joke. Untwist thy knickers and good luck with house hunt

 

I'd rather have the location of a gold mine lol..

 

Where are you looking to buy mues??