The only way Isn't up

Discussion in 'Property Market Economics' started by MTR, 7th Feb, 2018.

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  1. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    does it work in a falling market?
     
  2. Sackie

    Sackie Well-Known Member Premium Member

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    All over the place.
    Most likely not. Thank goodness there are thousands or markets across Australia.
     
  3. Illusivedreams

    Illusivedreams Well-Known Member

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    Although come on.
    $11k conversation and they didn't plan for the IO to ever expire?

    I'm no Saint but they are enormously levergedl I'm sure because they have assets to back but should with their experience have known this was coming.

    I would say 2 years to plan for this day if not alot more since they signed the loan documents.
     
  4. Illusivedreams

    Illusivedreams Well-Known Member

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    euro

    100%

    This time their was ample to time calibrate and prepare.
     
  5. Aaron Sice

    Aaron Sice Well-Known Member

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    It must feel a cushy kinda smug to preach down the proletariat masses having built a portfolio and not be squished between buying / planning pre APRA and refinancing or "recalibration" post APRA.
     
  6. MTR

    MTR Material Girl Premium Member

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    Fortunately this person has an income of over 60k per month..... Wont mention the PC member....you know who you are;)
    But clearly its mot going to hurt too much

    Probably not paying too much attention to this as they invest in the main o/seas
     
  7. albanga

    albanga Well-Known Member

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    Name and shame ;)
     
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  8. Illusivedreams

    Illusivedreams Well-Known Member

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    It has been very challenging and we made alot of changes to strategy. We had to build a granny flat Take $160k out of the funds we had set for a deposit.

    Every one has challenges.


    Don't forget APRAs policy was not a light switch it took almost 3 years as regulationed toughened.

    In the years previous challenge was prices were rising at 10+% per annum making our deposit insufficient.

    So every stage of investment journey has challenges.
     
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  9. Willy

    Willy Well-Known Member

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    From Investopedia-

    "Investors or traders have weak hands when they lack either the conviction to stick with an investing or trading plan or they lack the resources to carry them out"

    Seems to apply equally to both the stock market and property market.

    Willy
     
  10. MTR

    MTR Material Girl Premium Member

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    Big one is not to over leverage, manage debt

    Some people will lose their heads in boom cycles
     
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  11. sash

    sash Well-Known Member

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    Skirts and Pants is more fun........ 'appens every cycle with punters.....

    over 60% of my loans won't go PI&I till at least 2026.....in that time I would have reduced my debt to under $1m.....by selling a few...
     
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  12. Triton

    Triton Well-Known Member

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  13. MTR

    MTR Material Girl Premium Member

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  14. C-mac

    C-mac Well-Known Member

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    <<< insert some such comment here avout tides, swimming, and nudity >>> :cool:

    Tough times now and ahead, it seems.
     
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  15. kitdoctor

    kitdoctor Well-Known Member

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    The Reserve Bank follows the market when setting the cash rate. In their case they follow the 90-day Bill Yield. So you can forecast what the cash rate will do by following the 90-day Bill Yield but you can't forecast what the 90-day Bill Yield will do by following the cash rate. There is pressure building to raise the cash rate. See chart. australian-cash-rate-and-90-day-bill-yield 22 Jan 2019.gif
     
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  16. rizzle

    rizzle Well-Known Member

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    Markets disagree?
    upload_2019-1-22_13-35-13.png
     
  17. Kickstart

    Kickstart Member

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    Yes Jana you are absolutely right,i was too late.I was trying to sell it in 2018,but with no luck,it was very stressful time, for three month i didn't have tenants and didn't get the offer i wanted.i guess the best time to sell is 2017 ,by then still plenty of investors and great offers.Lesson learnt, if you wanna sell a property and make some profit ,you need sell it at the right time.
     
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  18. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    how do you identify that?
    A market can remain irrational for much longer then one thinks,
    But I agree if one has to panic be the first.
     
  19. MTR

    MTR Material Girl Premium Member

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    You wont know, the idea is to take profit before peak, which means you will leave some profits behind for the next person. For me this is a better option than getting caught at peak and stuck

    No onr went broke taking s profit
     
  20. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Agree,
    when invested,
    'how much I could gain' attitude is far riskier then 'how much I have gained'.
     
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