I have read a few stories like this over the last month:
www.news.com.au/finance/real-estate/buying/how-sydney-family-has-17m-property-portfolio-spanning-across-three-states/news-story/9e633ee23003d05be85f87ca31b0def3
People that have jumped into the property market and already have huge portfolios on relatively small incomes. So why is everyone seeming to whinge that properties are unaffordable for first home buyers?
If these people can get $1.7m worth in just 4 years, what wrong with the rest of you losers?
It's a good scheme too as we can all do it and just keeping getting more equity and buying more houses and everyone wins!
Seriously though, this shows that its all a big Ponzi scheme and needs negative gearing to keep it running. How can you argue otherwise?
For year's investment advisers have been totally against this system, leveraging one property to buy another. It's always been the same advice, but what if the market falls? Some advisers now say it was actually a good option with history showing there has has been little pull back in house prices and it seems rents have been pushed up to ridiculous levels.
What happens in the future is anyone's guess, I'm sure the same advisors would be saying it's too risky and don't do it, but will they be proven wrong again.
Personally after owning a couple of rentals myself, never again, especially with these new tenant friendly regulations coming in. It would only take one bad tenant trashing a place for the house of cards to come tumbling down. Zero rent while you attempt to find a builder for repairs over an extended period would cripple anyone's rental portfolio.
If it is so easy then everyone would do it. Fact is that most people are not comfortable carrying that much debt or risk.
If there is a property downturn, the family in the article are farked.
There was an election fought on negative gearing and it didn't get up, so there is little chance it's going to change anytime soon.
The change in voter demographics that is getting under way now means that there will be sufficient political pressure to gradually sweep away all the negative gearing perks. I'd give it ten years at most.
No u are forgetting that the govt needs and incentivises investors because they dont build f.all social housing unlike other countries. And the reason qhy our prices keep growing is as soon as the economy looks like slowing down (which is a natural cycle and ia healthy getting rid of inefficiencies etc) the just pump prime ot with migrants.
I just read on 'news':
Finance Brokers Association of Australia managing director Peter White said many mortgage holders were now finding it difficult to refinance their loans.
"The RBA must take responsibility for their poor insight and management that has led to the current issues facing those across Australia who are paying off a home loan and renting," he said.
Seriously? The RBA is there to take control if things are getting out of control with the economy. Bad management by successive governments does not take away the RBAs requirement to step in when things get overheated or slow down too much.
Finance brokers? The drug dealers of the real estate industry....
RBA's main task is the health and value of the currency. Everything else is second.
Makes us wonder if Albos team constant spray at the RBA, would they "go turkey" and reduce rates at inflationary conditions if they controlled the RBA.
Property investment is the way to financial freedom, in 2010. We did this buying an investment property in 2010 at a place I went windsurfing. My reasoning to look and buy in this area was it was the only place an hour and half from the Sydney CBD with water views and a railway station where a house could be bought for less than $400k.
We bought an old house with beautiful views and the potential to make it dual occupancy. We did this and rented it to two tenants. Shortly afterwards our family income halved. We were very lucky interest rates dropped over time so it was possible to service two mortgages on one modest income and the rental income.
i was sick of the hassles of the property and tried to sell it in 2020 after the Covid scare started. There was no one interested in buying it. In early 2021 a real estate agent contacted me saying the market there was hot and property was in demand. We sold the property shortly afterwards.
I was concerned at the time there was a bad combination. We had interest rates at historic lows. We had record government spending so workers could stay home. We had property prices rapidly rising. I thought this present circumstances is not sustainable.
After selling our debt was paid off and we had a far bit of money left over. More than enough money to leave work for a while.
Kudos to you. All Investments have risk. No one in Australia becomes rich from wages only, interest on deposits etc investments are the only way to have a try in something bigger.
The problem is investment opportunities are a few in between here, and risk/benefit/security is geared towards Real Estate comparing w others.
Gambling, petrol station retail, supermkt/grocery chains also seem to attract a bit more of investor attention too.
Henry David Thoreau said, "A man is rich in proportion to the number of things he can afford to leave alone."
The truly rich man is the one who does not think about money. By this standard many billionaires are paupers. In fact, the more money a person has, the harder it is to think of anything else.
He who regurgitates the official narrative without concrete physical evidence sells their soul the most - japie
"There are in fact two things, science and opinion; the former begets knowledge, the latter ignorance." - Hippocrates.
I see there was an article again on NZ's house rental prices stabilising to levels seen 7 years ago. At least in Auckland.
They have implemented planning changes where they allowed higher density almost everywhere in Auckland as well as changing the way housing profits are taxed. Who would have thought?
But it seems like they are now ramping up immigration. So just like here they will end up where "supply is not enough" because who can build enough houses to match the rate of immigration?
I see Sydney is set to become similar. The federal goverment has committed to building more housing to increase supply. What they haven't plainly stated though is that they are not building places themselves, they are heavily relaxing planning rules to allow much higher density so as to encurage developers to build all the new housing.
Welcome to 'new-aus' where you will be lucky to be in a townhouse let alone a house with a backyard.