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. C-mac

    C-mac Well-Known Member

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    For me personally I would categorise my 2018 thus far as a year of mostly 'housekeeping'.

    This means, whilst I havent bought any AU properties in 2018 (due to both my lack of desire to take on more debt currently, and the conditions in most locations that meet my interest/requirements, not exhibiting the right indicators to make it worth buying right now); I have done a lot of 'back-end' work on my portfolio including:

    - Restructuring some of my loans
    - Locking in some cheap rates with lenders on others
    - Equity release

    Also, re: buying opportunities I am looking to greener pastures (i.e. other countries) for residential property purchase. I'm close to closing on my first international buy and it is both nerve-wracking and exciting at the same time.
     
  2. Sackie

    Sackie Well-Known Member

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    " The market is a pendulum that forever swings between unsustainable optimism (which makes markets too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists." Benjamin Graham.


    Personally I'm loving all this pessimism and certain market corrections. I see massive opportunities in 2019- 2021. Those ready will capitalise big time.
     
  3. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Based on the rate and extent of falls I see Syd/Melb giving up most of their recent year gains, based on the headwinds we have in next 2/3 years, won't be surprised to see many areas back to 2014 prices (unless credit env eases much earlier).

    I will be looking to enter late 2020 / early 2021.

    Cashed up and waiting is not easy. Patience is indeed a virtue.
     
    Last edited: 11th Nov, 2018
    gman65 likes this.
  4. Buynow

    Buynow Well-Known Member

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    What rental yield will trigger you to buy? And which cities are you looking at?
     
  5. Sackie

    Sackie Well-Known Member

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    Agree mate. I personally don't see most markets going back to 2013 prices but if any do in good areas I would be snapping .
     
  6. Lizzie

    Lizzie Well-Known Member

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    Been an interesting year - sold a complex (6 units) for 40% more than paid for it 4 years ago as was going to need some major maintenance in the next few years ... bought three stand alone's for cash that will require no work and throw off similar net income.

    I think, for investors, cash will be the key for the next few years
     
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  7. Sackie

    Sackie Well-Known Member

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    I don't look at yields for real estate . I'm only into adding value deals.

    Looking at Syd, Brissy and Perth .
     
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  8. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Given that ability to extract equity will get limited due to falling valuations and conservative lending std, cash for deposit and ability to borrow will be the most prized asset in next 2/3 yrs
     
  9. icic

    icic Well-Known Member

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    that's a good one. those Optimists and pessimists are just roles typically play by the same type of people at different times.
     
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  10. Beano

    Beano Well-Known Member

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    The market net cap rate is more important than rental yield (as different properties have different cost and current rents can be high or low) eg about 7yrs ago I purchased a dozen properties at 2.5% net yield . This year I am looking at a increase in net rentals which could make the net yield 10%