Expert Bust #26 Investment grade props

more important is trying to capture a rising market like what we are seeing today.

 

Sure if look at data that fits a defined outcome.
Over 30yrs Mt Druitt did better. As did 2560.
Over 20 about the same.

In perspective Cottesloe on the beach about 6km from the Perth CBD.
Why not compare it with equivalent suburbs and preoprties near Sydney such as Dover Hieghts, Belleview Hill, North Bondi, Clovelly, Bronte.

Generic definition with no specifics, unless you have fairly precise factors and definitions as to what it means it's kinda useless.
So please give specific definitions of "high" income, risk and yield.

Balmain was an industiral waiste dump. The big $$ was made getting it to now.

 

I 100 % agree with you re your opinion re " investment grade " properties . It's a myth , but again it's easy to pick examples that demonstrate either view point .

Bondi / Mt Druitt in that time frame yes , But I'd 'be fairly certain it would be fairly easy to find a time frame leading into 2013 where Bondi out performed Mt Druitt . Why ?

Because nice areas ( bondi ) tend to move up more consistently and then the not so nice ( mt Druitt ) go flat for a period of several years and then play catch up . They typically go up by a similar percentage in any given cycle , the actual gain is typically over a shorter period . As the not so nice places tend to drop from their peak , you can often have a higher % gain from a trough to a peak in the Druitt's of this world than the Bondi's

Cliff

 

It most certainly is a myth, and it is a phrase used especially by one self confessed 'guru' that I can never find anything worth of praise.

Yes, and there are also some that are nice 17 Methven St, Mount Druitt, NSW 2770 - House for Sale - realestate.com.au

We all know it's supply & demand, but I take particular offense to this. Not everyone living in Mt Druitt is a bogan, nor are they all dog boxes. In fact, this is just as much a dog-box as your example in Mt Druitt

34 Railway Street, Cottesloe, WA 6011 - House for Sale - realestate.com.au

And before you point out the price, there's been some 'dog-boxes' in Mt Druitt selling for very high prices as well.

I get that you are trying to look like an expert with your 'myth-busting tips', But don't do it by putting other people down. You could have made the exact same point without stigmatising people. 100 people in Cottesloe vs 100 people in Mt Druitt. AND homes in Cottesloe vs homes in Mt Druitt.

 

If you spent an hour looking for dog boxes in Mount Druitt and an hour looking for them in Cottesloe, you would find more in that hour in Mount Druitt than in Cottesloe. Similarly, if you went looking for mansions, you'd find more in Cottesloe given the same effort as you'd find in Mount Druitt.

Firstly, I grew up in Mount Druitt. My parents still live there. I take offense at your offense. You don't know us, don't pretend to have our interests in your heart. We don't need your help.

Secondly, I'm actually pointing out to investors that stigma is no reason to turn one's nose up at a suburb. I'm amazed that didn't come thru in my original post.

Thirdly, I take offense at you suggesting I'm "trying to look like an expert". If I were trying to look like an expert, I'd offer pure opinion w/o offering any evidence.

Fourthly, if you spent an hour looking for a dog-box in Cottesloe, you'd find less of them than if you spent an hour looking for them in Mount Druitt. Posting a single case of a mansion and a dog-box in each suburb implies each suburb has equal proportions - not true. What we really want to know is what's "typical" not what outliers you can find.

 

Actually Cliff, it's the other way around. The biggest rise and fall, peek to trough is in the more expensive affluent (nicer) areas. The lower socio-economic demogs are more stable...



For more, check this out, Expert Bust #16 - Cheap markets don't fall the most

But you're dead right about finding a period in which Bondi outperformed Mount Druitt. And dead right about the catch-up too, there are periods where one suburb gets ahead and periods when the other suburb catches up and even overtakes sometimes. It's not about "where" one invests, but "when" since all suburbs have a boom sooner or later.

 

Yes, timing

 

Like @See Change I have experience, on the ground in Mt Druitt, and he is correct. That does not mean that Mt Druitt behaves the same as other lower socio areas, but your initial post is comparing to Mt Druitt.

Just because you say something is so, does not mean it is. Above you claim that you are not claiming to be an expert & then you say 'Check out this' where you ARE claiming to be an expert.

 

The series is titled, "Expert Busting". Obviously, they aren't experts if they're wrong. I was continuing with that same tongue-in-cheek theme by calling someone an "expert" for having an opinion w/o presenting any facts. Clearly, nobody is an expert for presenting an opinion w/o facts.

What I'm trying to do differently is provide data/evidence/facts/historical analysis rather than pure opinion. Opinions are cheap. It takes very little time to post one. But it can take thousands of dollars to acquire data, format and clean it, identify outliers and filter and analyse before finally months later I can post something that I found that might be useful for other investors. And then someone just replies with another cheap un-researched opinion.

 

I have 37 topics in the series, but I can find better things to do with my time if nobody is getting anything from it. Everyone let me know. QUIT or CONTINUE?

 

Continue. Don't have to agree with everything, but it's certainly thoughtful.

 

I vote continue

you need thick skin to play on forums

 

Continue!

 

carry on...a forum where everyone agrees ain't any use to anyone!

 

@datto do you think a front yard toilet adds value? I'd imagine the whole thing around fresh air in the morning, on the dunny with a durry would command some extra dollars...

 

It isn't where you came from. It's where you're going that counts.

keep it coming

 

Yes absolutely. By planting some trees and bushes along the front fence line. Presto! Instant front yard dunny.

Put some trees and bushes in the backyard as well. For when you need a bit more privacy.

Not too close to the barby though. Don’t want a sizzling hot plate. I’ve seen that happen once. lol.

 

Yes continue please.

 

I have no issues with other posts of yours. What I DO have an issue with is stigmatising a whole suburb and those that live there. My comments are not about your 'myth-busting', but the language used.

There are plenty of derogative terms for various members of society. You would not use those for our indigeous population, or our Islander Population, those of Greek/Italian heritage, or those coming from the Middle East. Why do you feel that it's OK to use a derogative term for those living in cheaper areas, usually uneducated Aussies?

 

Geez, just like many BAs. Maybe you're one too.
You look at some sheets and graphs and extrapolate and theorise what is only an opinion or interpretation.
Then come here and try to pass it on as fact to those of us who actually lived it, paid for it and sold it. The opinion around here is more likely to come from you as many of us bought, lived in and sold a few IPs over the last 20-30 years or so.

I'll give you a real example. In 1990-92 you could've bought a property for $75000 with a 15k deposit and sold it this year for just over $2 mil.
$15k to $2 mil out in the bogan boondocks. These properties were all over the West and SW.
Lots of people were theorising in those days too...interest rates were low (at 12%) and would only go up said the expert chart watchers. Growth was only in the city. Apartments in Milsons Pt is where you should buy. blah blah.

The missed opportunities? Buy + build 2-20mil, value after 10 years (2021) 5-60mil and still out here in the boondocks. You miss them staring at graphs all day.

And still waiting on a definition of what is High Growth, Income and low risk.
How do you measure each one of them?

I don't mind reading different and opinions I don't agree with, different angles and POVs on investing, but if your gonna tell me that my experience is "opinion" expect a reply.
You can post a blog or make website if don't want discussion.