It's 'doom and gloom' time (again…….)

In the end, buying a PPoR becomes more a lifestyle decision and less about finance (although I don't agree that people should get in ridiculous amounts of debt). I share a house and the owner would be financially better off if he rented out his house and lived somewhere cheaper. The decision to stay in his own home is not financial, it's a lifestyle choice. He doesn't want the inspections or lack of freedom to improve the property either.

 

A few reasons - the main one being that I don't think we'll be having a small correction. I think we're going for the big burst. Not willing to lose my capital.

The other one is that prices are dropping faster than our rent cost. A house that drops $10K over a year is ultimately $20K off the overall life-time mortgage cost. And some of the places are dropping more than $10K!

Probably the final reason is that my business is earning more each year. They way things are going I'll be able to pay cash in around three years from now. The more the AUD falls the more money I make.

That's all the financial reasons though.

In the end for us I think it's going to be an emotional decision. I imagine I'll probably snap one day after an inspection or when I think once more about why I can't plant the garden the way I want and that'll be it - regardless of what the market is doing or may do in the future.

 

MGF

Love to know where is this place where prices keep on going down . I do like to buy at the bottom of the market .

Where we're buying , now even the flood affected properties with overhead transmission lines at the back door are selling fairly quickly .

Some one just paid the same price for a flood affected property that we paid for a nicely renovated non flood affected property three months , so some places are moving .

Cliff

 

Middle of nowhere Qld.

 

Folks have had that mindset for decades and decades and decades...prices still keep on going up, then they stop for a while, then they go up again.

If you really believe that, then keep on renting and stop complaining about not being able to paint the walls.

Incidentally; if you approach your LL and say you'd be willing to repaint the inside of the property for him/her at your cost; I'm pretty sure he/she will say; "Thankyou very much, and here is a bottle of wine for being a good bloke".

Get a nice colour scheme sorted out and put forward a proposal to him/her.

Not bragging, but I've been in my rental now for about 3 weeks and have already done about $200 or more worth of maintenance inside the joint for him....it's a win/win.

 

Even past Toowoomba ?? !! ( OK , that's not fair on Toowoomba .. )

Maybe MGF stands for My God Forsaken country .......

Cliff

 

Rental market down too - rent won't cover mortgage. Has been a fair few lease breaks up here too.

 

It's possible to be fully aware of economic reality and be pushed by emotional factors.

I know houses are dropping in price here. If I buy now I might lose $50K at least.

So the question becomes: how much is it worth to me to never have to speak to a real estate agent again? I'd put that at about $20K. Would happily pay it to never have a problem with my property and have to wait weeks for it to be repaired.

How much is it worth to me to plant a vegetable garden with my daughter? Yeah, probably another $10K.

How much is it worth to my family to own a dog? A lot.

Right now I think we're very much going to follow Ireland. That was a 50%+ drop over four years. What we don't know is how far away that is. Are we in the equivalent of 2007 when the first slowdown hit that then snowballed? Or are we in 2003 and have four more years of growth before the wheels really come off?

Anyone in Ireland who bought after 2000 has only just now hit the price they paid back then. Fifteen years it took for the climb, drop, under and slow recovery. Not particularly interested in that happening to me but again, emotional things can take precedence.

 

Nah, not really.

It should be pretty evident from my posts that I care a lot about what happens to other people and our country.

Because I make all my money in USD and my business is growing, I would very much benefit from buying an IP and using negative gearing. But I don't want to do that because I don't want to participate in that system.

I have a lot of sympathy for those who bought because society told them it was a great idea and now they're discovering it wasn't. We have apartments up here that are nearing 2+ years on the market unsold. Behind that is an investor somewhere. It's horrible.

 

Mackay?

 

Well we are waiting so maybe I am holding back from spending that money.

Even if I didn't think the drop would be that big, the fact is up here the prices are steadily declining month by month and that's reason enough to wait.

I'm very much of two minds about it. Some days I'm very happy to be renting and it's all good. Other days, like two weeks ago when a tap washer went and we were losing 500 litres a day in water and the agent dragged their feet for four days... well, that wasn't so enjoyable.

 

For my neighbours, it was getting a breach notice for having toothpaste on the bathroom mirror. They knew me and my investment partner are property investors, so they came over and asked us to find them a house. A couple of week later they were outta there. No more breach notices to toothpaste. That's just ridiculous!

 

The problem is; folks have been thinking like that forever, and they never buy.

Meanwhile, the market keeps in ticking up over the years.

 

He blames everyone and everything else for his situation so what do you expect.

 

Plenty of people in Ireland before 2007 said exactly the same thing. How did that turn out?

 

HI, Azazel,
Isn't it what we want ?
just getting billions of dollars without even digging the dirt?
and keep taxing the owner at will ?
Blackmailing them to look after our interest otherwise will have your asset here ?
when they visit here, they will spend huge?

Is this called capital surplus somewhere ?