Fear mongering in the media has started - article

Discussion in 'Property Market Economics' started by Greyghost, 23rd Oct, 2015.

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  1. Perthguy

    Perthguy Well-Known Member

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    That's ok, it turns out the "economists" aren't even Economists. But I know what you mean. Just in my local area alone, there have to be at least 5 or 6 distinct markets that all track differently.
     
    Perthguy, 12th Nov, 2015
    #21
    Bryan Loughnan likes this.
  2. petewargent

    petewargent Buyer's Agent

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    "Foolish takeaway. Most people naively assume property prices always rise"

    Some do, not all.

    "Once lauded by the property websites and property investment magazines as investing heroes, young property investors with multiple properties face the prospect of negative equity – I wouldn’t want to be them."

    If they bought badly, true, particularly the cited mining towns, though I don't know who was recommending that.

    Bad picks can cut both ways though.

    5 stocks to buy in 2014

    "Free yourself from costly financial advice - 5 stocks to buy for financial freedom."

    i - Senex, oil & gas speccie - down 85%
    ii - Myer, department store - down 65%
    iii - Oakton - fell sharply in 2014, t/o, de-listed
    iv - Cash Converters - fared terribly, last traded at 52 cents

    Best pick was a fund. Regardless of asset class, diversification & strategy > stock picks.
     
    petewargent, 16th Nov, 2015
    #22
    radson, House, Bran and 2 others like this.
  3. The Butler

    The Butler Well-Known Member

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    I think this might be a little low.
     
    The Butler, 16th Nov, 2015
    #23
  4. sash

    sash Well-Known Member

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    Sniff..sniff...is that fear I smell in the air.....???:p:D
     
    sash, 16th Nov, 2015
    #24
  5. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Negative equity, sure if you bought at peak or mining reliant areas however if you bought before the peak all good.

    All good too if you don't need to sell.

    All good providing the lenders don't change tact and call in the debt or ask for a top up.
     
    Bargain Hunter, 16th Nov, 2015
    #25
  6. turk

    turk Well-Known Member

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    Hi The Butler

    Why do you think this is low?
     
    turk, 16th Nov, 2015
    #26
  7. sash

    sash Well-Known Member

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    Well...negative equity is going to happen in parts of Sydney....how quickly things change from FOMO (Fear Of Missing Out) to fear..where there is some level of panic.
     
    sash, 16th Nov, 2015
    #27
    Greyghost, Perthguy and petewargent like this.
  8. The Butler

    The Butler Well-Known Member

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    Hi turk, by axs I presumed you meant a representative index of the asx. I used google finance, entered the code for the asx200 accumulation index and it showed a rise of approx. 49% from Dec 2011 to present. What am I missing?
     
    The Butler, 16th Nov, 2015
    #28
  9. turk

    turk Well-Known Member

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    You have to compare the share performance against the ASX accumulation index from the time of purchase.
     
    turk, 17th Nov, 2015
    #29
  10. The Butler

    The Butler Well-Known Member

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    Not following you I'm afraid Turk. I was under the impression from your post that you meant that you had been following MFs recommendations since 2011 and that the total return from following their recommendations from Dec 2011 til now was 59% whereas if you had just invested the same amount of money in an asx index fund for the whole period your total return would have been 15%. If not please explain. Genuinely interested not arguing. Thanks.
     
    The Butler, 17th Nov, 2015
    #30
  11. The Butler

    The Butler Well-Known Member

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    Ok think I might have been having a stupid moment. Were you talking about wombats trades, not yours?
     
    The Butler, 17th Nov, 2015
    #31
  12. turk

    turk Well-Known Member

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    MF recommends 1 share per month, you have to compare the ASX total return at the time the share is recommended to that share, then average out.

    You cannot compare the ASX return at one point in time (December 2011)
     
    turk, 17th Nov, 2015
    #32
  13. The Butler

    The Butler Well-Known Member

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    The Butler, 17th Nov, 2015
    #33
  14. petewargent

    petewargent Buyer's Agent

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    Mesoblast (MSB) crashed another 40% this week...now worth ~$2/share.
     
    petewargent, 18th Nov, 2015
    #34
  15. C-mac

    C-mac Well-Known Member

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    C-mac, 9th Dec, 2015
    #35
    Bran likes this.
  16. bez23

    bez23 Well-Known Member

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    was this before the GFC?
     
    bez23, 20th Dec, 2015
    #36
  17. Azazel

    Azazel Well-Known Member

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    Indeed.
    Tell that to people where prices have already tanked or been flat for years.
     
    Azazel, 20th Dec, 2015
    #37
  18. MTR

    MTR Well-Known Member

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    On the flip side what gets me is when the fear mongering articles start when its a booming market, this is when you ignore it because obviously the people who write the articles are not investors, perhaps now it may be time to pay attention.

    MTR:)
     
    MTR, 20th Dec, 2015
    #38
  19. petewargent

    petewargent Buyer's Agent

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    petewargent, 8th Feb, 2016
    #39
  20. Perthguy

    Perthguy Well-Known Member

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    Ouch. There is a poster on this forum who thinks people should be allowed to invest in residential property. They should invest in shares instead. I can see a potential problem with that. Most of my super is invested in Australian and international shares. If I also invested all my money outside of super in shares, I would be very exposed to downturns in the market. That would not make for a very secure retirement.

    Knowing me, I would have wound up with BHP, OzForex and Dick Smith. Seems silly to me.
     
    Perthguy, 8th Feb, 2016
    #40
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