We love people who think like you do because we have a constant demand for our properties and just keep raising the rents because of the demand. We are going to be moving one of our businesses from an old property (B) that our recently vacated sub tenants entirely paid out our mortgage in 2009 and into a brand new building we bought in 2005 (C). When I bought the property (B) from the owner who I was renting from, the annual rent was $24,000. We now expect to be able to lease it clapped out as it is for $80,000 p.a. Of course the new tennat will have to spend a fortune doing it up which will mean he won't be going anywhere when we raise the rent after the first 5 year term is up. Of course property (C) that we took over after the last tenant vacated also has excess space that we are subletting to new tenants who; think that they can better utilise their cash elsewhere..... I agree they can pay off the new building we are sharing with them. We had another building (A) that we also bought from our then landlord back in 1995 and the rent we were paying then was $10,000 p.a. When we moved from there the new tenants spent a small fortune doing it up and after ten years continues to pour more into it. The annual rent now is $53,000 pa.......Its money for jam as it is paid off too But I agree with you wholeheartedly. We don't own our family home either... we rent it from a hybrid trust because as unit holders/beneficiaries can claim the interest as a tax deduction...a nice... safe.. investment for this old dog.. who doesn't like new tricks. Gota go time is money. Kind Regards non recourse
I think for me nonrecourse, what you've done is highlight how silly the market has gotten and how easy huge profit WAS in THE PAST. All this is changing. It has got no where to go but down. You are obviously well off, I hope you're smart enough to know when a (really really) good thing is over.
There is a very very old saying that goes; God ain't making anymore land. With the populations of our capital cities continuing to explode....If you are ignorant about financial history of property booms and busts you know that it all boils down to cash flow. If the numbers for you don't add up fine don't invest. NOT INVESTING BECAUSE CHICKEN LITTLE TOLD YOU SO is frankly dumb,dumb dumb Just remember there are markets within markets within markets. Talking about the property market collapsing here or overseas is nonsense when you look at the total number of properties under water. Even in the US and Europe the % overall just represent a fraction. Those in trouble failed to address their cash flow many from the very beginning. The real problem has and continues to be the manipulation by the wall street thieves and they continue spinning new scams day in day out. Kind Regards non recourse
What people fail to realise is that even with the huge crash in the states - property prices are back to 2003-2005 levels. If the greatest crash in living memory has caused the loss of 8-10 years growth in the centre of where the GFC hit - don't you think we may be over reacting just a little to say that property is doomed and has nowhere to go but down? malachii
depends on when you bought and/or how much equity you drew down to fund your consumption. The Case/Shiller index was still falling I noticed the other day as well.
"NOT INVESTING BECAUSE CHICKEN LITTLE TOLD YOU SO is frankly dumb,dumb dumb"...............I did my own numbers many years ago, and as I admitted above, I got the timing wrong. Had no idea there'd be so many STILL pumping money in to an inflated asset.. I don't follow anyone's theories or sums but my own. "markets within markets within markets"....I know that but I'm not smart enough to play it...Either way all boats fall in an outgoing tide. "The real problem has and continues to be the manipulation by the wall street thieves and they continue spinning new scams day in day out."...............Yeah they're the ones that allowed people to borrow more and more and more until there is nowhere to go but contraction and therefore property price contraction. "Talking about the property market collapsing here or overseas is nonsense"........already is, already has. "property prices are back to 2003-2005 levels"....From there, they doubled and then more than halved.....So there's no surprise there. Therefore people that bought at the top have at best halved their money. I really look forward to property being a good investment. I've done very well out of it and want in again. That time though, to me, definitely is not now.
After 2003-2005 they doubled and then more than halved.....So there's no surprise there. Therefore people that bought at the top have at best halved their money.
Your just an old dog renovator, barking barking at anyone who doesent hold the television programming you swallowed from last decade. You were sucked in, all you achieved was profits for a bank and debts for yourself. Don't concern yourself about my future though, I have land, up country away from the madness and plenty of compounding liquid investments to ensure a nice retirement. I may buy a house in the city again one day, after they have bottomed and its clear there will be growth and profit. But looking at the other nations housing markets continuing to fall and fall, and their rent and ours, continuing to fall. Well that will probably be 20 years in the future and by then I doubt I would bother. You are the one who will retire in poverty R. Suburban housing and RE in general are a lose lose investment now. You missed the boat ol mate, you should have sold in 2007. But like I said, old dogs can't learn new tricks.
Dont forget to adjust for inflation http://www.jparsons.net/housingbubble/ then you get the real picture and it does actually look like they have reverted back to the inflation adjusted long term trend line, my bet is it will undershoot
