How will you make money when property markets tank?

Maybe for you but not for me. I don't understand any of those. I'm sure I can dig up a doom and gloomers for all of these who are predicting a bloodbath in the markets in a few months or years. Record household debt and overleveraged, greedy investors pushing up prices... blah, blah. It's all going to collapse and the world will end. etc. etc.

 

Out Mt Druitt way the term "tank or tanked" is rarely used. This term has a somewhat vulgar connotation.

Out here you would more likely hear "the market has **** itself".

Should there be a decline in Sydney property price then I would most likely use the sit and wait technique.

Picture a hunter in fatigues waiting in the reeds, shottie at the ready, duck whistle in mouth, waiting for the right moment!

 

It' the same mindset as a property investor, if you are not a scalper of course. if you are talking shares or CFDs - you can have dividends (it's like rent). Buy and hold. The more you hold - the more you earn. Patience is the key.

 

if property market goes side ways (mind you , it is not if, it is just matter of when) manufacturing growth would be the key to make money out of property. Reno/Flip/Subdivide/Build/Cashflow will be prime target.

Yes agree with posters that are indicating that look for markets within market, and/or buy below BMV, etc. However, other assets class/products may offer better returns @ less efforts.

 

I don't understand them either, but I understand myself in markets. The Great thing about the markets is that you can jump in and jump out with a push of a computer key, and you don't have to physically deal with people anymore, which is also a plus in my book.

 

Cashing up here....got rid of all debt and saving as much as I can.

Darwin is tanking no ifs or buts about it. Still a bit early to strike but the opportunity of a lifetime is slowly unfolding up here and I shall be waiting to gladly partake in it.

 

Good move, so I guess they were all in Darwin?

Perth market also tanking, over supply of apartments and people just not buying. Too early to jump back in, I expect we will see further drops.

 

@MTR Are all of the Perth markets tanking? Also what do you mean by 'tanking'? Are there no good buys left in any market in Perth using any strategy?

thanks

 

For me it's the time in the market not timing of the market. I buy to hold long term so if the market drops I keep doing what I do and purchase properties whenever I can afford it. Nothing changes, life goes on.

 

Tank/ed - Bust (downturn cycle)

The market in Perth was rising from 2012 to mid 2014, started with sub $500K range FHB territory and then we had developers jumping in, however higher end has not recovered from our last crash 2006/2007.

Perth market late 2014 peak, we have oversupply of apartments, basically they have fallen back in price.

We have development sites that are not making any sense because end values have dropped.

I am not sure whether you would call this a crash, because its not like we are seeing 20% drop in values, but properties are not flying out the door.

People are not buying because of the uncertainly, economy, last month we lost 10,000 jobs, significant.

I think many on this forum are waiting for prices to drop further and perhaps pick up some bargains, in particular development sites.

Don't have a crystal ball, but I think we are still in for a rocky road in Perth.

MTR

 

Thanks @MTR for your explanation. I am one of those ppl on the forum you mentioned waiting for the markets to bottom before i look at site buying. I dont know much about Perth (only that they are obsessed with double brick) but i think there could be some fantastic value to be had once the dust settles..

Cheers

 

Lots of suburbs are still selling in Perth, lots are not.
I would say it's taking longer for average properties to sell.
Prices have dropped 5-10-20% in certain suburbs.
I recall in Girrawheen at peak, properties that are looking to get rezoned in a few years were selling for $420-$450. Now for sale around $390-400K not selling.
Nollamara and westminister maybe 100 or so new properties are being build or recently build. They are not selling fast or at all or renting quick.

It really depends on the suburb, how much you want to spent and what you want to do with the property. I can see some bargains but I think there will be more bargains next year.

I've fixed two of my properties in the past few months. Tempting to move into my 5x2, renovate and rent out some rooms to create easy cash flow.

 

Keep collecting rents. (as per AITH)

 

Collect rent , work in my day job and buy in the places that aren't tanking .....like Brisbane

Cliff

 

Good point about the rents, I forgot about this.

Just to give you an idea, I have a property where lease will expire in February 2016, currently renting at $465 per week, have been advised that I will be lucky to achieve $400 pw. Once again renters have options, too much supply

MTR

 

Collect rent. Sell off some more (not Sydney ones mind you), increase rents, add a GF, wait for the market to be 'right' & flip a couple maybe.....if we feel like it.

 

My correct answer should have been

" Get on with the rest of my life "

For me , property is a way to make money so I can do other things.

For me the last 18 months , I've been busy with property . Looking forward to finishing with our current buying . Then I will be prioritising other things . As a reward for selling our latest properties I'm converting the tandem part of our triple garage into a music studio and once I've done that I may not be spending much time around here .

Have gone long in Brisbane and secur d a couple of higher returning properties in a regional city . My expectation is that we will see significant growth in the next 1-3 year but if that doesn't happen I still expect Brisbane to be the next capital city to see major growth . If it takes 7-10 years so be it . That aspect of property investing is out of my control , so all the debates and predictions about what will move when are irrelevant to me at this stage .

Cliff

 

Get reacquainted with betting on the dogs. I always win because I choose the one with the coolest name. That or the one with the stripes because stripes make you go faster...

 

Skater you keep working it, a true investor, I like

 

but you also purchased a weekender, am I right? Nice