What's the biggest killer for CAPITAL GROWTH?

Discussion in 'Property Market Economics' started by MTR, 15th May, 2017.

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  1. MTR

    MTR Well-Known Member

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    I LOVE CAPS......
     
    MTR, 15th May, 2017
    #21
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    [​IMG][​IMG]
     
    Scott No Mates, 15th May, 2017
    #22
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  3. au contraire

    au contraire Well-Known Member

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    Haha. Back to the topic.

    I think the biggest killer is overpaying in the first place
     
    au contraire, 15th May, 2017
    #23
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  4. zlatan9

    zlatan9 Well-Known Member

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    Except many people bought in Sydney between 2012-2015 thinking they overpayed but as it turns out, they did not - not by a long shot (as at today anyway).
     
    zlatan9, 15th May, 2017
    #24
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  5. Cactus

    Cactus Well-Known Member

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    Queuing. :p
     
    Cactus, 15th May, 2017
    #25
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  6. PandS

    PandS Well-Known Member

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    I am cashing out, maybe I am one of those people in 10 years time :)
     
    PandS, 16th May, 2017
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  7. hammer

    hammer Well-Known Member

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    Wow...Reading all this is like a total description if Darwin 3 years ago...over supplied, over priced, not enough Jobs or population...

    Can confirm that it hasn't exactly been fantastic for capital growth. :(

    People have really been hurt...be careful out there folks! It goes both ways...
     
    hammer, 16th May, 2017
    #27
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  8. Serveman

    Serveman Well-Known Member

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    Slowing of immigration numbers and international investors deciding to buy elsewhere would have to be a huge factor. Population growth and economic vibrancy are also important.
    I can't see government wanting to stop these things and the banks wouldn't either.
    I think APRA regulations affect local buyers more and I don't think the internationals care about APRA.
    I believe all cities in Australia will continue to grow, even those that are currently on slow burn, it comes down to choosing what your best choice for the short to medium term might bring in terms of growth from an opportunity cost point of view.
     
    Serveman, 16th May, 2017
    #28
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  9. Cactus

    Cactus Well-Known Member

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    Market sentiment would be a key factor in demand. But ultimately everything comes back to supply & demand. They don't call it economics 101 for nothing.
     
    Cactus, 16th May, 2017
    #29
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  10. Luckycharm

    Luckycharm Well-Known Member

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    Biggest killer is poor people.

    This is a simple one but if you dont got money you cant push the house prices up.

    I invest where rich people live (as much as I can).
     
    Luckycharm, 16th May, 2017
    #30
  11. Momentum

    Momentum Well-Known Member

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    Marc already said it but the #1 killer of cap growth is lack of credit = people can't get loans = can't buy property = reduced demand.
     
    Momentum, 17th May, 2017
    #31
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  12. Bayview

    Bayview Well-Known Member

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    Yes; it's ironic how the Gubb always bleat on about "affordability", yet continue on their merry way fueling demand through immigration, and also scooping the cream through GST and Stamp duty and other charges.
    Haven't EVER seen anyone in the Gubb talk about reducing either of these things significantly.
     
    Bayview, 17th May, 2017
    #32
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  13. Whitecat

    Whitecat Well-Known Member

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    A downturn in demand for minerals
     
    Whitecat, 17th May, 2017
    #33
  14. Whitecat

    Whitecat Well-Known Member

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    sometimes they can be quite a good capital gain
    I would say the real killer is divorce
     
    Whitecat, 17th May, 2017
    #34
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  15. Whitecat

    Whitecat Well-Known Member

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    Influenced by?
     
    Whitecat, 17th May, 2017
    #35
  16. Xenia

    Xenia Well-Known Member

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    I just checked mine and it's almost 3000.
    I need to get a life lol
     
    Xenia, 17th May, 2017
    #36
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  17. larrylarry

    larrylarry Well-Known Member

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    Welcome bck @Bayview
     
    larrylarry, 17th May, 2017
    #37
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  18. MTR

    MTR Well-Known Member

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    At the moment, because the market is booming and there is not enough land, developers drip feeding. We can go from no supply to over supply if the market changes, and it will? Its just a matter of when? Not being negative I love Melb as investment, however booms don't last forever, history proves this, time and time again.
     
    MTR, 17th May, 2017
    #38
  19. MTR

    MTR Well-Known Member

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    Some triggers that can turn the market from boom to bust, from supply vs demand

    Economy, ie jobs etc.
    Finance Tightening
    Interest Rate Rises
    Affordability
    Market Sentiment

    Look at the States that are suffering at the moment they have at least 3/4 triggers.... bingo
     
    MTR, 17th May, 2017
    #39
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  20. TMNT

    TMNT Well-Known Member

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    I see what you did therr;)

    Should we change the world "capital" to "weight"? ;)
     
    TMNT, 17th May, 2017
    #40
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