Don't Buy Property in 2019

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

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  1. berten

    berten Well-Known Member

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    A penny saved is a penny earned ;)
     
  2. kierank

    kierank Well-Known Member

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    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 ;).
     
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  3. Noobieboy

    Noobieboy Well-Known Member

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    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". :D:D:D

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

    Sackie Well-Known Member Premium Member

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    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.
     
  5. MTR

    MTR Material Girl Premium Member

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

    kierank Well-Known Member

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

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

    Bayls Member

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    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.
     
  8. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    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.
     
  9. Bayls

    Bayls Member

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    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?
     
  10. johnmteliza

    johnmteliza Well-Known Member

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