Non Footy Chat Thread

[Kornstar]

Cheap money will keep it churning however rising unemployment and low business confidence will slow it down to a plateau IMO.

If there is a correction it will happen with a thud, however only shave 10-15% off before everyone jumps back in.

Historically that's what seems to happen.

If I paid 650 for my house and it is currently over a million, when should I jump? When it hits 1.2?

I should then rent for a while and as soon as it bursts buy back in and will probably get a bigger house and have a smaller mortgage.

Or is that too simplistic? Cause I am simple.

 

[Suitman]

If I paid 650 for my house and it is currently over a million, when should I jump? When it hits 1.2?

I should then rent for a while and as soon as it bursts buy back in and will probably get a bigger house and have a smaller mortgage.

Or is that too simplistic? Cause I am simple.

We've been thinking along the same lines.
Our house has gone up to a stupid figure, (I certainly wouldn't pay it but plenty will) but we'd only move if we could upgrade. There's no point really.

Suity

 

[Gronk]

If I paid 650 for my house and it is currently over a million, when should I jump? When it hits 1.2?

I should then rent for a while and as soon as it bursts buy back in and will probably get a bigger house and have a smaller mortgage.

Or is that too simplistic? Cause I am simple.

We've been thinking along the same lines.
Our house has gone up to a stupid figure, (I certainly wouldn't pay it but plenty will) but we'd only move if we could upgrade. There's no point really.

Suity

I think that reducing debt is sensible. If you are feeling it and fear rising interest rates, then a move to cheaper location is beneficial.

Having said that to "downsize' you'll need to take into account the Agent's commission on the sale and Stamp Duty on your new purchase. It could cost you $100k just to move down the street.

 

[Suitman]

I think that reducing debt is sensible. If you are feeling it and fear rising interest rates, then a move to cheaper location is beneficial.

Having said that to "downsize' you'll need to take into account the Agent's commission on the sale and Stamp Duty on your new purchase. It could cost you $100k just to move down the street.

Yeh, we realise that. Another reason for staying put. We would end up with a downgrade for the same money.

Suity

 

[Kornstar]

We've been thinking along the same lines.
Our house has gone up to a stupid figure, (I certainly wouldn't pay it but plenty will) but we'd only move if we could upgrade. There's no point really.

Suity

You just keep hearing from much smarter people than I that it will burst. So I think if it is eventually going to happen that to get ahead (I gew up poor and never had anything) it would be so nice to do it.

It really is all about timing though I guess, if you get out too early and prices continue to skyrocket then when it does burst, the percentage it bursts by may pretty much mean you've wasted your time. But if you get out just before you could really put yourself in a great position going forward.

I wouldn't pay what people are paying to live in my area, I still think 650 is way overpriced. It's f**king north west Sydney ffs!

My preference would be to sell and buy up above Newcastle on lots of land and wait for them to want to build housing there and make a killing, but that is what smart people do.......i could do my job out of the Newcastle office very easily......the wife won't go for it though

 

[emjaycee]

You can save 000's selling without an agent.
Easy to do esp. in this market.

 

[Delboy]

I know a couple that did just that, sold in Sydney and moved to Raymond Terrace with a small mortgage, that was 7 years ago when house prices were stable and came off slightly.

They want to move back to Sydney for family reasons and kids job prospects, basically they are stuffed.

I have looked at moving several times, even to the Gold Coast,, but love the Hills District , so while my kids are still in the Hiils, no point moving

 

[Avenger]

That unit that I bought at Newtown in 2013 that Pou put shit on me about has gone up $200k in 18 months. I wonder how his shares did in that time? Serious question I would be surprised if a $500k outlay would have made a return of 40% minus capital gain tax in 18 months. That is what this unit has achieved.

Property investment rules.

 

[Suitman]

That unit that I bought at Newtown in 2013 that Pou put shit on me about has gone up $200k in 18 months. I wonder how his shares did in that time? Serious question I would be surprised if a $500k outlay would have made a return of 40% minus capital gain tax in 18 months. That is what this unit has achieved.

Property investment rules.

Yep.......at the right time.

My inner west unit went up 200 k's in 18 months, and 300 k's in 3 years.
As long as you buy and sell at the right time, or hold on long term, it's a no brainer.

Suity

 

[Delboy]

Just watched the first episode of Series 3 of Ray Donovan, absolutely brilliant

The Strain also starts series 2 this week, awesome, but Ray Donovan is seriously the best thing on TV - more watchable than even Game of Thrones

 

[Barry O'Speedwagon]

Gonna watch Ray later tonight. He's good. I have a friend who's a spitting image of him and has never seen the show.

 

[strider]

he's so cool ... everyone wants to be a cool as Ray

 

[yy_cheng]

I'm a property investor and have had 9 properties over the past 15 years buying and selling

However, is it actually better than stocks after expenses?

If you borrow the same amount to buy a house and stick it in stocks instead, would you be that much worse off.

I have positive cash flow on my investment properties and the ato forces me to prepay tax on a quarterly basis. I buy insurance, pay agents, pay maintenance which I would not do with stocks

The dividend from stocks are also franked. Furthermore, it is easier to reduce your exposure to an asset class with stocks.

I haven't done the historical comparisons as yet but I am planning to reduce my in property portfolio but I am hesitant to buy stocks at this level.

I am also thinking to put a portion in super.

I am not new to stocks as I used to trade stocks even speculating with penny stocks and warrants

Anyone thinking of Greek property in 6 months time?

 

[Barry O'Speedwagon]

It really depends when you get in (obvious I know). Stocks are undoubtedly more liquid, but the tax concessions are not as generous. Those tax concession partly get priced in to the value of properties (but coz not everyone is an invest the 'pricing-in' is not perfect). The fact that dividends are franked (for Aust investors) is also partly priced-in. In the long run you get what you pay for, but in the short run people do better in one class rather than another. It's hard to see what upside there is in the Syd property market.....but I've been wrong before.

 

[yy_cheng]

Cheap money will keep it churning however rising unemployment and low business confidence will slow it down to a plateau IMO.

If there is a correction it will happen with a thud, however only shave 10-15% off before everyone jumps back in.

Historically that's what seems to happen.

I think the Chinese are the wild cards here.

I have experience with property in hk and they dropped alot more.

The Chinese are like lemmings and keeping up with the Jones is another factor especially about face.

If your neighbour, relo starts boasting that they have Australian property, then you also go and buy one.

If they sell them you sell, you don't want to be embarrassed by holding to a losing asset and losing face

When the drop starts, the rest will follow and it will collapse. All those owning those off the plan apartments will sell and sell which will affect surrounding apartments

If they are desperate for money at home due to other bad investments they will sell their aussie property

This is also what the Japanese have done in the past. It's called repatriation.

When market values drop, those in Australia that have borrowed to the hilt will get called on their loan ratios. If unemployment rises then they won't be able to service the loans anymore and will be forced to sell


Why I say it's a wildcard is it really depends on what type of money was used to buy these properties. Is it black money or corrupt money? Is it money that they can't repatriate because they got it out illegally? Or are they planning to defect to Australia. If these situations are the case, then a massive selloff may not happen.

 

[Haynzy]

WOW! That's sad news mate!!

Suity

Yeah mate, it's been a tough decision.
May be worth a trip to Adelaide on August 30th ;-)

 

[Hollywood Jesus]

I'm thinking of buying land and building a house out of shipping containers.

 

[Poupou Escobar]

That unit that I bought at Newtown in 2013 that Pou put shit on me about has gone up $200k in 18 months. I wonder how his shares did in that time?

lol 'in that time'

How many people talk about when their property loses money over a period of 18 months? You don't hear from them.

Serious question I would be surprised if a $500k outlay would have made a return of 40% minus capital gain tax in 18 months. That is what this unit has achieved.

Property investment rules.

You reckon it's a good time to buy then?

 

[I'm a loser baby...]

I'm thinking of buying land and building a house out of shipping containers.

I only became aware of the shipping container thing recently, when my brother mentioned them. Initially it seemed like a good idea but a very minor bit of research showed that you may be better off just building yourself. At least you get the size and shape that you want, and proper insulation. But as I said, it was very brief research. I've seen granny flat kits for about 15k I think.

 

[Avenger]

lol 'in that time'

How many people talk about when their property loses money over a period of 18 months? You don't hear from them.



You reckon it's a good time to buy then?

Laugh it up buddy. Just like you did 18 months ago. Proven wrong again. No I wouldn't be buying anything now but when we spoke about it in 2013 it was a great time and I was proven correct. How did your shares go?

How come you're back? Have you missed us?