Is all this APRA hoopdela actually an opportunity for investors

But when markets crash the chances are you lose much more if you are holding multiple properties going backwards, paper losses are losses.

 

Well you don't lose anything unless you sells. If your property is already generating positive cashflow. Then there is no point selling it downturns. Hold and wait till it goes back up.

 

If cashflow positive, most resi property in oz is negatively geared

MTR

 

Ancedotal evidence of finance being denied to people who thought they could secure it.

Over last 2 weeks I have had 2 purchase deals approved which my clients were the under bidders at auction. In both cases the agents approached my clients about a week to 2 weeks after the auction to see if they were still interested. Obviously the winners could not secure finance. Interesting that this would happen at all but 2 in 2 weeks tells me the APRA changes are having an effect.

 

Whatever happened to "buy low, sell high"?

And if the proverbial hits the fan, how can you be assured of continued positive cashflow?

Case in point: Perth.

 

Well worth it PG!!
I'm buy/reno/hold but you have to look at the gains and weigh it up, I have sell figures on my properties. I have only done it once I sold at the top in 2010 and that property today has not got back to the price I sold for. This opened my eyes to selling can be good.

Although the black BMW I bought with some of the profit probably wasn't the wises investment!!

 

Depend how much negative, and depend on how much you earning, and ur strategy. If you can service the debt, why would you want to sell.

 

Because the increased serviceability requirements means you cant access your equity, and getting a job may be unpalatable. You would off load a crappy yielding, cash flow draining, high value property, for a cheap high yielding high cash flow property. It would only cost about 10k in stamp duty, possibly save you a bit in land tax, give you an extra 10k in positive cash flow every year and save another 10k in negative cashflow, making you 20k better off every year.