FONGO - 12% of owners selling for a loss

12% of owners selling nationally for a loss, nearly 50% of Darwin owners selling for a loss..

Some interesting numbers in this article.

Number of Aussie properties resold at a loss climbs to six-year high

 

Does that mean 88% of owners sold for a gain? I like those odds.

 

Bet they will get seller’s remorse soon when they realise they sold at/near the bottem of the market .

 

Touché sir...Obviously stamp duty and other costs were excluded...

Nevertheless highest level in 6 years is the notable number... at what number is it concerning for you? 70/30?

 

Lol - whenever I get buyers remorse for overpaying in Sydney in the last few years I always feel better reading this forum

 

Property Investors Selling House At A Loss Expects Nation Feel Sorry For Them

 

Losses at 3.4% compared to profits, bloody low risk.

Thanks @Oliver Shane for pointing this out

"Australia had a total of $486.8 million in realised gross losses from resales over the March quarter, with highest share of losses nationally seen in Perth (24.8pc) and Sydney (19.9pc)," CoreLogic analyst Camer Kusher wrote in his report.

On the flipside, $14.3 billion was the total gross profit earned by owners reselling their properties across the nation.

 

Like that book, “The Secret”?

 

Wouldn't that depend on your individual plan? Even if you got to 60/40 and you bought say 2 years ago but your plan was to keep the property for say 15 years(which is medium term property wise), you'd need to think were the property will be in another 12 years time.

 

If only 88% of the time I made a profit on the sale of my shares....

If only

 

The only numbers that concern me are my own. What I paid, when, what my exit plan is and when, what my contingencies, what's my emergency buffer and emergency plan if something goes south are etc etc. The rest is just noise.

 

For us old-fashioned B+H old farts, it is ALL noise .

 

I guess that’s been the beautiful thing about the Australian dream of home ownership last 35 years, with the credit boom and demographic changes - haven’t had to worry too much about losing money on property ever over any 5-7 year period....

Sydney prices are still up 70% in last 7 years (average holding period) incomes up 18%...

And this time will be no diffferent right? The 20% recent drop in values just inconvenient noise

 

I like the noise that a thundering herd makes in a market... whether they are thundering to get into a market (FOMO in 2015), or thundering to get out.

 

Looking at historical data you should beat those odds with shares in the form of ETFs.

 

Me too!

True story...

One of my last purchases had an out of area Agent selling it at auction....in an area that doesn't do auctions. I was the only one bidding. After a drawn out auction the vendor made a bid & I came back at "And a half". It passed in to me @ $500 over the vendor bid. Then the negotiations began. Vendor in the house, me in the garage. Agent running back & forth between us. He repeatedly threw numbers in front of me, saying "We're nearly there", but I held fast. When I got tired of this, I pulled out my phone, googled another house that had sold recently for $15k under my offer. He asked "Where that?", as the suburb name was different. My reply was 'next street'. He grabbed my phone, went running into the vendor, then came running back out to me to shake my hand. "Congratulation! Congratulation!"

What the Agent didn't know, being out of area, was that the house that I showed him was totally trashed. Holes in walls, etc, & the one I just bought, although not perfect, could be lived in straight away. Anyway, I bought for over $50k under market. I'm betting the vendor would have seller's remorse, when they realise.

So, this purchase of mine would likely fall into the statistics of homes selling cheaply.....but that's only due to the Agent, not the market in the area. If it had sold at Private Treaty, they would have got a lot more. Plus, if the Agent had local knowledge, they would have known the 'comparable' I showed him was not comparable at all.
.

 

That's how the market works. There's always a drop after a boom.

Didn't you listen to @kierank .....

Yep, like the crackle in a radio. Endless noise.

And that's exactly what I love too. Buy when everyone else gets out, sell when they all want to get in.

 

What’s this “20% recent drop” you speak of?

Sydney is only down 14.9% from peak, Melbourne 10.9% from peak. The markets are stabilising.

 

Another typical post from @Oliver Shane, when the data doesn’t support your argument throw in fictional data.