The Psychology of Declining Markets....

Discussion in 'Investor Psychology & Mindset' started by sash, 28th Jan, 2016.

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  1. sash

    sash Well-Known Member

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    Don't worry...my opportunity will come within the next 3 years. Remember you need a strategy to buy just because you bought in Sydney...is that always a good thing? Let me put it to you lets say I bought 3 places in Sydney for 1.2m prior to the boom ...post boom they are worth lets say 2.4m......then after a couple of years after the boom it drops to say 2m. The rents lets say are aobut 80k per annum. What is the killer if they are all houses is probably land tax on say 1.3m. That represents about 13k in land tax? Have you considered that?? Even on a original borrowing of say 1.1m...that is a killer....balanced approach...read about post on that...
     
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  2. sash

    sash Well-Known Member

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    Agree...lord forgive them for they not know what they do... :D:p
     
  3. S.T

    S.T Well-Known Member

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    Should be renamed to psychology of missing out on the Sydney boom.
     
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  4. RetireRich101

    RetireRich101 Well-Known Member

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    so you're paying land tax now in nsw yet you're buying in nsw in few years time to increase more land tax? :eek:

    Aren't you 48 now and planning retirement at 53? And you're still buying in Sydney in "few years" time.?
     
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  5. joel

    joel Well-Known Member

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    What Adelaide suburb was this. .
     
  6. sash

    sash Well-Known Member

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    Absolutely.......have you got $3-4m in capacity......life is like a never ending packet of Tim Tams if you know how? No offence mate...a different league....would suggest you read up on limiting beliefs....

    As for land tax..it depends what you are buying...my preference will be for T/H and Villas near mature rail corridors.....in small complexes.The land tax increase can still be covered by the rental return..if you select correctly.

    I feel that that product has the greatest bang for buck.....so what is the strategy...well...that is a trade secret for now....
     
    Last edited: 28th Jan, 2016
  7. RetireRich101

    RetireRich101 Well-Known Member

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    I think your bluffing (again) in buying Sydney in few years time. You will be 51 then , another 5-7 years Sydney stagnate/ recover, you will be 60. Thought your strategy is sell one by one when you hit retirement. Hope those Tim Tam don't get expired then :p
     
  8. sash

    sash Well-Known Member

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    He...he....yeah you are right.....trouble is you don't know the CF from the current portfolio....I will leave you with that one...

    What can I say........limiting beliefs? Might I also remind you about Deception Bay.... @Taku Ekanayake can get you elaborate on your view on this suburb?

    I guess...we can agree to disagree...lets leave it at that shall we?
     
    Last edited: 28th Jan, 2016
  9. S1mon

    S1mon Well-Known Member

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    news said 'west is best'...so im feeling pretty confident of a steady market out that way
     
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  10. Inov8ive

    Inov8ive Well-Known Member

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    I posted that link on his Druie thread earlier today but he would rather start a whole new thread and post it himself than respond to me directly. I think the old ego is a little bruised;)
     
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  11. Mr Dabolina

    Mr Dabolina Well-Known Member

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    House? 3/1/1/?


    se
     
  12. euro73

    euro73 Well-Known Member Business Member

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    I can tell you that areas around Prestons/Liverpool in the SW and The Ponds/Bella Vista in the NW suffered the largest mortgage arrears and LMI payouts during the last "softening" in Sydney.
     
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  13. sash

    sash Well-Known Member

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    Yep.....3 x1
     
  14. sash

    sash Well-Known Member

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    Sure did.....history about to repeat again....
     
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  15. Inov8ive

    Inov8ive Well-Known Member

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    And still no price decline? The south west must be solid then!o_O
     
  16. JDP1

    JDP1 Well-Known Member

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    its Drui or Druie..not Druid...although there are quite a few druids staying there...:)
     
  17. Xenia

    Xenia Well-Known Member

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    OK thanks - I'm not familiar with sydney market, just wondering why it kept coming up as a point of discussion.
     
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  18. datto

    datto Well-Known Member

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    Mount Drew It. It doesn't matter how you say it. Love it or hate it, but many an investor has cleaned up over there.
     
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  19. New Town

    New Town Well-Known Member

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    Now for the Media and Agents to talk of "bargains". Forget that the price increased 70% over a few years. Now it is down 3% there are bargains apparently
     
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  20. Gockie

    Gockie Life is good ☺️ Premium Member

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    It may be that Druie does ok in the correction. Australia hasn't seen the medians that you see in Eastern Sydney at anytime before. Not everybody has or is comfortable with spending 1mill/1.5mill to buy a home, which us what you need as an entry for the "nicer/further east" 50-60% of Sydney.

    At least Mt. Druitt is still affordable for owner occupiers or first home buyers and for people moving from interstate or from overseas.

    I think there will be plenty of people (maybe not yuppie couples but families needing a house) happy to still buy there. If you have a budget of say 600k, east of Parramatta you are severely limited in options in buying a house, or even townhouses. You'd be in unit territory. But you can still easily buy a house in Mt Druitt...

    The reason why Central Coast and Illawarra are doing well at the moment is because so many people are priced out of Sydney. And at least Mt. Druitt has good transport to the city. Places change....

    My colleague is spending 800k for a new build near Penrith... if anybody is in for hurt I think he is. Its so far away for so much money. But people still want to come and live in Sydney and so it will keep expanding upwards and outwards... eventually Penrith won't feel so far away either...
     
    Last edited: 30th Jan, 2016
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