Myths in the property industry

Discussion in 'Investment Strategy' started by Property Twins, 4th Jan, 2021.

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  1. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi guys,

    Just wondering what are the beliefs you held when you first started investing in property?

    Listing a few below I've seen with people.

    1. Property is about maximising tax benefits from the government
    2. Having strategies like flipping or development will make me more money than buying a good property for the long term
    3. The investment advisor is paid by the developer, so their income is not coming from my pocket and it’s FREE
    4. I will register a land and put 5% deposit and worry about saving rest of the land and construction deposit later
    5. Rental guarantees protect me over the long term
    6. I need to time the market perfectly to make gains in property

    thanks.
     
    Property Twins, 4th Jan, 2021
    #1
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  2. Angel

    Angel Well-Known Member

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    "Real estate always doubles in value every seven to ten years"
     
    Angel, 4th Jan, 2021
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  3. Piston_Broke

    Piston_Broke Well-Known Member

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    My experience, not faith.

    1. Property is good for minimising tax, for everyone I know.
    2. Developing can make **** loads more than buy and hold in any area. If you're experienced.
    3. Agree.
    4. I have no idea who would be that silly...
    5. Nothing is guranteed except death.
    6. Timing the market can double growth over the long term.
    7. Many properties do double every 7-10yrs. With good timing.
     
    Piston_Broke, 4th Jan, 2021
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  4. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Have seen peeps lose deposits :(
     
    Property Twins, 4th Jan, 2021
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  5. spoon

    spoon Well-Known Member

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    Property investment is easy, just pay for the deposit, get the loan and get an agent to rent it out. Then the rent will come in automatically. Give the rule of 72, I shall get rich very soon... So far off from the truth!!:eek:
     
    spoon, 4th Jan, 2021
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  6. The Y-man

    The Y-man Moderator Staff Member

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    Property is about "time-in" not "timing".

    Turned out to be all about timing!

    The Y-man
     
    The Y-man, 4th Jan, 2021
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Trust me, I'm an agent. :D
     
    Scott No Mates, 4th Jan, 2021
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  8. willair

    willair Well-Known Member Premium Member

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    Everyone a winner in real estate,as long as you never sell..
     
    willair, 5th Jan, 2021
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  9. MTR

    MTR Well-Known Member

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    MTR, 5th Jan, 2021
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  10. Blueskies

    Blueskies Well-Known Member

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    * Rental yield is unimportant, it's all about the capital gains.
    * The area that has done well in recent history is the place to invest for the future.
    * Brisbane will boom in 201x
     
    Blueskies, 5th Jan, 2021
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Still waiting :oops:
     
    Scott No Mates, 5th Jan, 2021
    #11
  12. spoon

    spoon Well-Known Member

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    Time-dependent
    201x -> 202x :rolleyes:
     
    spoon, 5th Jan, 2021
    #12
  13. Steve Palise

    Steve Palise Member

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    1) Commercial property does not grow as much as residential
    2) Vacancy rates are higher with commercial property

    Both completely false
     
    Steve Palise, 5th Jan, 2021
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  14. wylie

    wylie Moderator Staff Member

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    Equally though it is a myth that you do better with commercial, especially small commercial. There are so many places vacant for months and months and I think "thank goodness we didn't buy that shop, office etc".
     
    wylie, 5th Jan, 2021
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  15. unicorntears

    unicorntears Well-Known Member

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    Apparently everyone who owns an investment property is negative gearing and it should be banned. Awesome. I'd love for my investment properties to be positively geared by law.
     
    unicorntears, 5th Jan, 2021
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  16. MTR

    MTR Well-Known Member

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    Only buy blue chip:confused: as this outperforms…… lies ….. and more damn lies


    We saw what happened in many undesirable suburbs in Syds west and other States

    It never ceases to amaze me ……we are seeing this today in Perth, some undesirable suburbs are booming. Yet local investors ignoring this, savvy Investors from East jumping in. :eek:
     
    MTR, 13th Nov, 2021
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  17. jaybean

    jaybean Well-Known Member

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    Lenders Mortgage Insurance only protects the banks, and there's zero benefit to the buyer and should be avoided if you can.
     
    jaybean, 13th Nov, 2021
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  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Benefit to the purchaser is lower deposit, so its not zero benefit,............

    ta
    rolf
     
    Rolf Latham, 13th Nov, 2021
    #18
  19. spludgey

    spludgey Well-Known Member

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    I agree, the market might go up at 6-7% a year on average, but you can more than double that rate when developing.
     
    spludgey, 14th Nov, 2021
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  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    That is something I would agree with - are you suggesting it is a myth?
     
    Terry_w, 14th Nov, 2021
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