Property Values

Totally agree with you.

I am definitely not anti-property. I would prefer to own 10 x $1.5M properties than to own 30 x $500,000 properties.

 

Listen if anyone's IP proves too much trouble to keep I'm always happy to help out and take it off your hands, no fee charged whatsoever.

 

Iol....

 

Be my guest....
How are the 3-4% yields looking Today in Syd/melb?
Definately buy less, No one can afford to hold these today, you will be bleeding and prices are falling....ouch

 

You sound like an experienced property investor and an amateur share investor .

If you are as intelligent as I believe you are, one day you will see the light and cross over to the dark side .

Sadly, many property investors won’t follow your footsteps .

 

Who cares, if you have 30 or 10??? Its way too broad, too many variables, one important item is the cashflow a property can generate, that little chestnut

 

You give me too much credit, I'm an amateur at both

 

Yes, but MTR, you know that (a) lower yield reflects lower risk (ask any bond trader - that is what yield is); And (b) that the yield you buy at is not the yield forever. In the capitals, rent goes up almost every year.

So you have the choice, as you know, of buying a high yielding but static property, or a low yielding lower risk property that grows.

Obviously property selection comes into it, but you might be missing the larger picture if you define yield as only = cash flow.

 

Well, I am NOT going to trust you with my property portfolio .

 

How is the risk looking today??? In Syd/Melb property market

I am not against blue chip but you would need to be totally insane to buy in these markets today at peak and trending south

 

lol...

 

Heads up.......Loving this thread.....seems to rattle the cage

 

everyones Lol'ing but me....

 

I don’t focus on cashflow, not with shares (which is important to me) nor with property.

Total Returns is what I focus on as this is what ultimately increases my Net Worth, my ultimate goal.

Cashflow can be generated in many ways. So a negative cashflow asset is not a big issue for me.

In my working life, I started two businesses from scratch. In the early years, they produced negative cashflow.

Even now in retirement, we have a property that is the most negatively geared IP we have ever owned. Its gross yield is about 2.5% but we knew that when we bought it.

It is way more important to have a plan, monitor progress against that plan, have significant cash reserves, monitor cashflow across all one’s assets (not just property), measure what’s important (in our case, Net Worth and available cash - both trending upwards for the last x years), ...

Obviously, your little chestnut is different to ours. That is what is so great about the world of investment.

 

Yep......heads up..... chill out....lol

 

Yield is lowest at the peak, so you think buying at peak is a safer then buying at bottom as yields are higher?
based on your argument Sydney was safe to buy in 2017 (yield lowest)
then in 2011 (yield higher)

sydney rents have started to fall now,
perth rents have fallen for years,
brisbane, canberra rents have fallen post gfc and for many years.

 

lol...

 

Yes, whats weird is investors believe rents always go up, this is a myth..... they also fall, its about supply vs demand

I started a thread long time ago......BS detector, has lots of BS myths, my fav is “its only a paper loss”

 

I guess everybody suffers fear of pain,, and fear of suffering and mortality but I think you maybe way off with that statement about the rental market in Brisbane is the same as the GFC rental range..
But I would not try to bang up the rents in this market,as I walk 5 klms a day and it's only in the past month I have seen so many new places for lease and for sale ,several where they have split the block built on one block then waiting to sell the first one cashed up again then build next door ,one has been on the market for over 13 months and that property is still the same price ,I just hope all the investors thinking of selling don't all hit the exit at the same time and Blue Collar Bill and his union mates gain power ..At least with equities all it takes is one phone call and you know within 48 hours the after tax cheques are in the accounts ,property is a different animal..