Property Investors will sit on their hands in 2018?

Discussion in 'Property Market Economics' started by MTR, 12th Mar, 2018.

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  1. MTR

    MTR Well-Known Member

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    Agree or disagree?
     
  2. Biz

    Biz Well-Known Member

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    Sitting on their hands while Apra has them by the balls.
     
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  3. DaveM

    DaveM Well-Known Member

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    Those who can borrow will borrow and buy

    Those who cant borrow wont
     
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  4. HUGH72

    HUGH72 Well-Known Member

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    It’s a year for that endangered species, the FHB.
     
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  5. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Succinct.
     
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  6. wylie

    wylie Moderator Staff Member

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    We are moving forward with our long ago planned development. This allows us to make best use of the assets we already hold and work towards having more cashflow than we have now.

    We've sat on our hands (apart from getting the DA) for years because we've been retired for years. We are lazy investors. :)
     
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  7. Nadine Cross

    Nadine Cross Well-Known Member

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    Many investors seem to be City-centic, and assuming Sydney has supposedly peaked, Melb supposedly not far from peaking, Perth supposedly still a bit flat (could be moving a bit?)...this would mean yields will be terrible for a while (despite current low interest rates), so a large number of investors will probably keep their powder dry.
    There will still be a number who look elsewhere, regional, create cap gain themselves etc..
    But generally, I predict a decent drop off in investment lending.
     
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  8. MTR

    MTR Well-Known Member

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    Yields are woeful combined with finance tightening its a double whamy

    Trying to add via value/developing is going to be tough
     
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  9. mues

    mues Well-Known Member

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    Based on my current outstanding debt being 1/3 of household income I have the ability to get a couple mil to invest. However, due to the current environment and also some personal factors I think i will sit on the sidelines for a bit.

    At some point I will buy a house between 1 and 1.5 mil in Melbs. But that might be 2019.
     
  10. kierank

    kierank Well-Known Member

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    We are not sitting on our hands.

    We are selling down 30% (by value) of our property portfolio.

    We will then reduce our loan portfolio by 66%.

    This will turn our negatively geared portfolio into a cashflow positive one.

    Are we **** scared? Nope

    Have we hit a serviceable ceiling? Nope

    Are we positive about IPs? Yep

    We are just executing our plan.
     
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  11. Nadine Cross

    Nadine Cross Well-Known Member

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    not according to the real estate agents. :p
     
  12. sash

    sash Well-Known Member

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    Please define sitting on your hands?

    I for one in 2018 will be:

    1. Selling another 2 places and will recycle my loan on these
    2. Will borrow for 2-3 construction loans once my land titles later this year
    3. Will I buy some new places...probably not? But never say never...
     
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  13. MTR

    MTR Well-Known Member

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    Do nothing.... sitting and waiting for opportunities
     
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  14. Perthguy

    Perthguy Well-Known Member

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    I am hoping to! By choice, not necessity. I am worn out and need a break. I know others planning to invest in 2018, so it will probably even out.

    Realistically. how many Australian's have investment properties? 20%? That means 80% of Australian's are potentially investors in 2018. It's a lot! Add up all the borrowing capacity of 80% of Australia and it is a lot of money.
     
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  15. sash

    sash Well-Known Member

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    That rules me out...I have not done this for years..always something goin' on.
     
  16. Eric Wu

    Eric Wu Well-Known Member Business Member

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    You mean preparing for opportunities? ;)
     
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  17. Otie

    Otie Well-Known Member

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    Im hoping to buy one to replace one I want to offload. I want to buy in now so I can buy at around the same buy price as I paid for the one I want to dump, while realising the gains on the one Im dropping. The one I want to get rid of I foresee being a maintenance money pit down the track.
     
  18. MTR

    MTR Well-Known Member

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    So are you buying in the same market? If so you could watch your gains go backwards if you are buying in again at peak???
     
  19. Nadine Cross

    Nadine Cross Well-Known Member

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    Our last purchase was 2 years ago in Melb, and our DSR is shot now, so lots of hands-sitting for us this year.
     
  20. Otie

    Otie Well-Known Member

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    Planning to buy something that needs work. Suburb I’m looking at is rough and occasionally things come up 60-80k below market value. Also looking at next ripple suburb. Can’t sell this one til I’ve had it 12 mths though and don’t want to get locked out of this market as I want one for the next cycle for a longer term hold to hold onto and potentially develop 10 years down the track. I bought the one I want to sell for 418, we spent 12k fixing it up and now could get 520 in current market but have to hold onto it til end of this year to get the CGT discount. About half the growth I’ve had on that is through the work we did on it and the other half is just the market growth
     
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