How to NOT invest!

Interesting article in the paper today > 'If I'm not safe, no one is' - when property investing goes bad . Really reiterates what the wise people here on TE always advise.

 

This pretty much sums it up. I NEVER EVER EVER invest in any area that relies on single stream to survive.

Putting all your eggs in one basket in a place like this is suicide and pure stupidity. Completely different to Sydney and Brisbane city.

"Moranbah is not the sort of location which we would consider to invest in because it is a one industry town with no economic diversity and not an overly desirable lifestyle"

 

mining towns and the infrastructure expansions - that's why population booms on one way ticket industry in WA like port hedland, Moranbah. is highly risky

This different from building infrastructure - underground trains, hospitals, stadiums, universities which has longer term benefits

But hey everything is keynesian stimulus according to some

 

....risk tisk

"I'm a real estate agent, so if I'm not safe, no one is"

19 homes in one suburb!
How about diversifying?

 

19 properties in Moranbah..

 

Pretty rare to see a REA who has fallen their own marketing...x17!!

Let's be real though, these are the bag holders. I would be interested to hear the tale of those who pumped and dumped in these towns.

 

Yes
Its all about timing even with mining towns.
Boom for mining towns in WA ie Karratha, Port Hedland etc was from 2001-2007

Investors were buying as low as 200k rents as high as $1800 per week, median house price of Karatha and Port Hedland hit $1M.

Point is anyone who got the timing right would have made a killing, even if they held the stock today

Investor on SS did this in WA no longer posts

 

Makes me feel a whole lot better about my situation.

 

Crazy what yields are acceptable now in comparison.

Clearly a high risk high reward scenario. But a very pertinent lesson in "taking money off the table" that will no doubt be learnt the hard way in other less obviously risky markets as financial tightening increases

 

Hmmm.
Was this person part of birch family?

Also i know everyone says diversifaction ifs key but had you boufht 19 properties in sydney in the last 5 years. Youd almost be retired.

I know people who did this. They didnt diversify and are doing the best that i know of

 

19? You could retire in Sydney with 1 great paid off (or near paid off) property if you then move elsewhere. Many suburb medians are currently 2m plus...

78 Sydney suburbs have a median house price above $2 million

The problem with upper end Sydney properties is the rents. Lucky to get a 2% yield....

 

Yeah..... But...... I'd pay a squilliion in tax.

 

Buy ppor + 1 ip in 2013, sell ip 2017 or 2018 , pay off ppor, mission accomplished.

 

And retire happily ever after. The end.

Edit: On second thoughts, too much tax.
So... sell PPOR (no CGT), move into IP?
Throw money into share portfolio and former IP debt. Borrow to buy shares, borrowings all tax deductible. Live off dividends?

 

What a silly article and a fallacy. Just because you're a real estate agent doesn't mean that you are bulletproof and immune to making some silly rookie mistakes.

 

Exactly. Even on PC there's advice from professionals that can make your eyes water.

 

Yeah almost feels too fallacious to be true, that too by a REA herself.

 

How does being an agent make you a better investor? It doesnt.

 

It's true. Diversification (or lack thereof) can be very enjoyable when you get it right.

Has to be one of the most overused words in finance.