How will you make money when property markets tank?

Last 3 years for property investors who played in the right markets should be sitting pretty.

However, the signs are clear that various property markets in Australia are now changing, finance is tightening etc. and chances are we will be seeing prices fall, go sideways??

What will you do moving forward to continue to make money?

Curious are/have you worked out a strategy? or will you sit back and do nothing??

MTR

 

Continue to do the same thing. Making money with property via BMV and adding value, creating equity. Find what the buyers want in the 'new market', acquire the deals and then cater to the demand.

 

Sometimes you can only look at it one way,if you accept that the current values and returns are permanent,and some have become rich with face value asset price inflation in several markets within Australia over the past 3 years then it may not worry people,plus i don't have a clue as the RE market the only good statistics that are always right are past history..

 

@MTR Care to share your thought process to your own question? You have done very well buying in the US, even better than the boom we've had in Australia over the last couple years.

So, in current conditions, what do you look out for?

 

Firstly, all property markets do not "tank" concurrently, if at all.

There is money to be made in any market, you just have to sniff out the deals.

Doing nothing, but just holding, over the previous 2-3 years made me a LOT of money (unrealised equity). I think even if the market only grows a moderate 7-8% here on the East Coast (SYD) then I'm still on track by doing nothing but continuing to hold

 

Collect rent.

 

Keep collecting positive cash flow and manufacturing equity through renos. Not much changes here.

 

There is market within market, for me - I will look different area. Perth, Darwin around 3'o clock PM, Sydney, Melb around 12. But Brisbane and Adelaide sound promising.

Same like Leo, buy low + added value and collecting positive cash flow (build buffer).

I've combined manage funds strategy to recycle debt, and also great solutions for my service ability post APRA. Not everyone will agree that I paying down some loan, but SANF and I can draw equity when the market recover

Don't forget that you will make more money when the market is in crisis if you have the knowledge..
Bulls make money, bears make money, but pigs just get slaughtered!

 

Sell everyone's properties

 

Continue to service debt (c/f positive, so that should be fine), then try to snap up bargains if I see them. Not short term - but I'm here for the longer game.

Even then, I think 'tank' may be a bit of a strong word' - 'noticeably decline in value'?

 

call it what you like - tanking, flowery downturn, peace and love - whatever.

share trading.

 

To me it is a property correction which always seems to happen after a boom. Although we are repeatedly told that ‘past performance is not an indicator of future outcomes’, property always corrects after a boom. Funny that.

Anyway, I will be looking for buying opportunites as prices fall. Or preferably, after prices fall

 

But then what do you do when CF positive becomes CF negative

 

i havent seen good enough returns in perth property value adds for last 2 years so have focused my capital elsewhere. there are plenty of ways to make money, property is just one of them

 

Because people will always need somewhere to live and property is a very unique asset. You can't live in a stock or cash etc and call yourself king of your stock but the psychology of many towards 'a home' which is. ..gee primarily made up of property gives very unique value to the asset.

Now couple that with Australia being a relatively safe place, great lifestyle, almost zero terrorism, great health care and social services and limited supply of homes in sought after areas.

Ladies and gentlemen, I think we have a long term winner.

My 2 cents.

 

I pat myself on the back for locking in my rates low and collect my rent high(ish)

 

Quit property investing for good (this I have already done) , there are other markets around us which are a lot easier to work in - CFDs, Forex, Options, Indexes, Commodities etc.

 

I am taking a bet each way, increasing cash flow while reducing debt.

I will be looking at leveraging money made in US now that I can source finance, hopefully unit blocks? if I am lucky

MTR

 

Well in this order:

1. Depreciation (equivalent to 2-3% CG)
2. Increasing rents
3. Growth in markets like Brisbane, Outer Melbourne, Adelaide, Wollongong, NSW CC...portfolio is very diverse.
4. Increasing income

 

I don't have the mindset for shares, so I stick to property, I wish I was