How will you make money when property markets tank?

When the entirety of the property market in our fine nation "tanks" and people are living in K-Mart tents in the streets looking at the houses, I predict a fine opportunity to buy each house for $2 each.

 

That sounds like a good plan, but the site will be worse off for your absence!

 

We had about a five year gap with no buys from 2004 - 2009 .

GFC was the trigger to start buying IP's again . Weekender came in 2012 .

Rents move up , neutrally geared properties become strongly positive and negatively geared ones come neutral .

There is life outside property.

Cliff

 

Same here. We started buying again in 2010. I'm anticipating not buyin for a while now.

 

This is a big difference that I notice as well.. Most people didn't have the patience, where they want to buy as many, as fast as you want.

They didn't realise that managing buffer (thanks for sharing your story Skater) is key to survive the market.

 

Yep. .i plan to makr money outta my job if property tanks...

 

I'm looking now. Nothing stacks up in my opionion and prices are still coming down. There are deals coming onto the market that are more interesting than a month or two ago but I feel like it is still too early to jump in.

 

Drive UBER

 

I have already experienced property stagnating as I have invested in the Adelaide market the last 7 years so I am use to it.

My strategy will be sitting back and waiting for great deals to come up that I will be able to afford because of my cash available for deposits.

I predict a lot of mortgagee sales will come up in the next couple years

 

I agree with others; to just get on with my life.

I think I can say this confidently because; havibg learned a lot from my peers over the last 6 years on this forum (including Somersoft); i have learned the importance of building some quality buffers and putting them in place, to protect myself from market 'storms'. So, it took me two years and the sale of one property, but I've done that now and a buffer in place to ride out a pretty severe storm, should one occur.

For now though, I am squeezing out the last borrowing capacity that lenders will give me for a final purchase. After this upcoming purchase, I'll be maxed out and my acquisition-stage will pretty much be complete.

Then, like others who have posted here, I'll cease buying for quite a while and let my garden grow.

 

@Perthguy thanks mate. Based on your feedback, @MTR and others re Perth, it seems to make a lot more sense to wait for the markets to hit bottom or around bottom before securing some deals. What kind of development sites do you see as offering the best value at that time?

Cheers

 

If the property market tanks, maybe it would be prudent to consider buying "premium" property, and then discover the world of yield.

Alternatively, just before it tanks, liquidate everything, buy up a bunch of Blackmores stock at $200 a share (surely it's got to go to a $1000?) and then go short on a bag of currencies indulging in QE.

May or may not make any coin, but it will be an exciting ride.

 

For so much talk on "mindset" here on the forum there is a hell of a lot of confusion. I would be backing myself and the skills i possess to outperform the averages.

 

Agree totally. If anyone can survive/make money during boom bust cycles that has to be a great strategy.

.... and that is the point why I started this thread, had to do with survival during all cycles (boom/bust). Some new investors have only been through one cycle/boom

MTR

 

You can always do the "capital growth averaging (CGA) strategy" and start eating into your equity. Prices will come back up.......won't they??

 

The title of this thread is pretty gloomy. Not much discussion on how this event might actually occur, but simply I would cash up, pay off debt, reduce exposure to risk assets, and salivate at the opportunities to buy late in the cycle. Unfortunately, if your wrong......................

 

If they dont there'l be a few more incomplete development ventures go belly up and the end of leveraging into further investment property.