This is what timing can do for you

In my opinion, Timing is not that hard to pick, and you don't need to be 'perfectly' timed every time either in order to take advantage of the market, just thereabouts. Does take one to be actively involved with their investing, following market signals, being quick, brave and having finance.

 

A savvy PI would not be relying on the media for their research?

There are lots of books also that can educate the PI about what signs and factors to watch for to signal an upcoming growth period in a particular suburb/City.

 

I'll be the first to admit I still find it hard to pick the timing. Maybe that's just not having the experience. But if there was a poll now on whether timing is right to buy in Melb, Syd, Bris, Adelaide, Perth, Hobart, I'd be saying Uncertain, Uncertain, Hopefully yes, Uncertain, No, No.

That's just an honest personal assessment. I know of many friends who have bought and are buying and they're asking me what I think!! (Of course I tell them I'm not the right person to ask, despite having read much more than they have).

 

I wouldn't disagree with what you said above but I'd give Hobart a tentative yes. (I would like to be on the ground exploring though before committing).
Ps. What's your thoughts on little ol' Canberra?

 

One of the easiest ways to find out what is happening is to phone agents, find out how long properties are taking to sell, multiple offers, what is selling. You can also see a pattern on real.estate.com. Lots of under contracts

 

My comment as it being a 'heavy sprinkling of luck' was really just a reflection on the degree of improvement in the values. The good management was seeing opportunities and embracing investment in good markets and in the first place.

 

The trick is not to buy unless it has already started rising..... you will only know this by making those calls to people who are selling and many.

I buy sight unseen all the time but work with re agents at least 3

 

Totally agree with the "free money" part. It's all well and good to harvest equity to buy more, but when do you stop?

Newbs need to realise this. Grab some equity and buy more property, easy done mate. Overlooking the fact that that equity used to fund deposits still has to be paid for somewhere at some time. Sure tenants pay for some, ATO pays for some with depreciation, neg gearing etc. But the rest still falls on you. A positive cashflow property can quickly become a negative cashflow property with a decent equity snatch. The banks are watching this more closely now. Even so. . . .

For me personally I like my properties to be PAYG so to speak, so it doesn't impede on my day to day finance. How far down the NG rabbit hole are others comfortable going?

 

when you realise that you wont be giving away your day job anytime soon and its a treadmill to nowhere unless you work out a strategy where you can reduce debt and create income streams..... and while you are doing this you become so emotionally attached to each property that the longer you hold the harder it is to give it up ...
These properties become a noose around your neck if you let them... I said that in one breath....

 

The problem I found is that in 2012-13 when Sydney was rising - I/we didn't think it could honestly go up much further - I think this sort of thinking stopped people from getting in at that time. So when people say it was luck, well they made the right move by getting in.

Care to share one of your favourites?

 

because after boom comes bust, has been doing this for decades, could be flat or go backwards for 7+ years. Its also very much dependent on your LVR, quality of property, income. With Bank policy changing we now also need to consider servicing debt to move forward, it wont get any easier and in fact holding everything may actually slow you down rather than speed the process of achieving your end goal?. Also, there are strategies of reducing tax for example buying in trust and distributing if you can and there are other ways if you use a smart accountant it will help.

Not saying you sell everything, but property market does not continue to rise, if you have made some gains can use the profits to inject into other asset classes or growth wealth and reduce stress today and improve cash flow I think its not a bad way to go. All to their own, this is working well for me in current environment.

 

Everyone is talking as if the market is turning. Last I checked, it's still very strong in both Sydney and Melbourne.
No one knows for sure. I never intend to offload anything I bought, as I always try to finish the race.

Boom I buy, ....bust, I buy even more.

 

2 things.

If you buy really well to start with, rather than just take CG, that helps.

Second, if you take the equity, and you buy property that pays for itself (by again buying well with good return) then no drama, banks are calculating at a higher rate, so factor that in too.

On low income, if your clocking up a lot of NG places, then instead of just equity pull, you would need to sell while at the top, or run out of ability to fund the shortfall, or ability to take equity, or both.

If sentiment here changes, the mob wont be too many years behind ?

I saw what happened in Sydney with the rises when APRA changes came in, had a stunning effect, so another year or so on with growth, and rate rises or anything else will stop it dead, data also showed Melb. had declined, but no idea how it was worked out.

I would say Sydney is just waiting for the trigger/s, would say the finger is in place and has some pressure applied already

 

Unfortunately I don't have an educated view. Although with the start of rate rises and recent news about jobs being lost I wonder whether it's going to be challenging everywhere in Australia.

 

I5
No one is saying the boom is over because it's not, but an investor needs to mitigate risks ... interest rates rising rings alarm bells

You may be able to finish the race because you have the huge income from business to service debt the average Jill or Joe may not have this luxury

What do they need to do? Work out whether than can service debt if we see 1-2% ir rises?

Ignore this if it does not apply or no one is interested I am not here to preach

MTR

 

Time has indeed changed.
For those who buy beyond their financial capability, it's either own up by earning more money or give some up.
I prefer a steady and solid market.

Carry on @MTR , give them nightmares

 

Lol, I am playing in the market so I am in the same boat, it won't be a nightmare whatsoever if investors plan today it's just a heads up

 

....and I bet you some BS maths.....eg leaving out some of the expenses they are covering etc.

Want to calculate the stamp duty alone for these 4 properties they've purchased??

 

This is a very good advice. Investing is like good sleep habits. Early to bed (divest before the bust), Early to rise (invest at the early signs of boom).

No it didn't stop most people. More people pouncing on rising Sydney resulted in one of the biggest hikes we have seen. Simple demand and supply.

I don't think Sydney is in any danger unless interest rates change. I know few suburbs have slowed down but downward trend in number of listings continues and I am convinced that Sydney houses at least will enjoy another 10% growth in next 12 months. But I expect similar growth for house prices in Melbourne and also in inner ring Brisbane. I am personally investing in Brisbane as there's simply more chance of growth there in next 5 years once/if Sydney/Melbourne slow down.

You need to realise that some houses in Sydney had massive increases in value in last 3 years. A house in Wahroonga bought for $900k in 2013 could very well be $1.6m with renovations. Their unit probably doubled in value as well.

 

You did see all the rate increases announced over the last week or so & you did see it is not just fixed rates, but rates will be rising independent of RBA and mainly for IO and SMSF ?

There there will be more it seems from regulatory changes.