Post to SinFongChanRE.wix on 31/12/2017 at 12:51 PM
Commenting on “Risk-averse Aussies say real estate not wisest place for savings”
https://www.domain.com.au/money-markets/riskaverse-aussies-say-real-estate-not-wisest-place-for-savings-20171221-h08r7h/
It seems "time" is moving faster and progress is pushing on in all directions, so much so that most people are lost, not knowing which direction to take, and therefore are too afraid to make long term commitment.
These days, many things are made NOT to last, and that include relationship. In many cases, things and relationship can be grouped as disposable.
By now, you may get a bit annoyed because this is a real estate blog and you don't come for a lecture about life. Well, you can just stop reading, and after all this is the last post of the year, and for some, this is the last post for good. I shall not be intruding into your FB life because I shall invite selected people only to have access to my site.
However, if you do read on, you may change your mindset, and be a wiser person especially in real estate investment.
Real estate investment is a long term investment. For those who are married, the decision is not unilateral, and the cost of divorce can be a real nightmare because property ownership settlement can be fairly ugly. There goes the "happy moments" living in a disposal era!
The real estate boom in Melbourne began to dwindle in 2015, and the so called gurus and experts who never admitted their over optimistic predictions began to wave their white flag in October 2017.
A property in Glen Waverley sold in late 2015 for over $2.6m has been back in the market for a while with an estimated of $2.2m. Apparently, there was an offer of $2.4m, but the vendor rejected it. The question is, "was the offer genuine?".
Real estate is the least liquid of all investments, which means it cannot be converted to cash easily, with the exception during the crazy, out-of-control market similar to that previous 5 years.
Early entrants at the boom cycle, bought and sold for quick turn around do make good money. As what I pointed out in one my blogs, when greed sets in and those invest more and more using the get-rich-quick principles will face their judgement during the last leg of the boom.
I have been encouraging you to drive around the outskirt of the Melbourne's already build-up suburbs. If you have done so, you will see very clearly there is plenty of space for a lot more housing development.
Before "suburbanisation", Camberwell was the boundary for the east, and later the line was drawn further out to Box Hill. Glen Waverley was still very sleepy in the early 70's.
In the 60's and 70's, flats were built for those who could not afford to buy landed property; in a way they were sub-class investors. In the 70's, the word "apartment" began to appear, because Hong Kong migrants start to "settle" in Australia. The humble "flat", a British word with a single syllable, was replaced by the a bit more "sophisticated" word known as "apartment".
What is happening now in the apartment market is very similar to what happened in yesteryear, except the apartment sale has been repackaged to attract those trendy generation, and those who would be better off spending their money, being pampered by 6-star hotel staff around the world, living on the top floor enjoying the view of the "clouds".
The first house my wife and I owned in mid 1970's cost $28K, and we sold it for about $31.5K. It was then sold for $138K in 1999 by the owner of that time. When construction of the Eastern Freeway was announced, it jumped to $368K in 2006. The current estimate is about $930K.
Has the present owner done anything to the house? None, what so ever; no extension nor major renovation within.
I sold a property in Glen Waverley to a client for about $295K in 1995. The buyers wanted to back off, but I put my foot down and insisted they should raise the fund to buy it. I told them NOT to let that golden egg slip pass. The property is worth around $2.4m by my estimation.
I cannot do it now, insisting my client to buy a property, because only qualified advisers can advise their clients how to invest specifically. That's is why I am rather vague when some readers message me for more specific advice.
I did not have much knowledge about real estate then; I thought investing in real estate was only a game for the wealthy. It is not true, because not every property costs millions of dollars, and not every property is for personal use that must suit very stringent criteria.
It is true that real estate investment does not suit many people, but if you have children to pass on your inheritance, I think one or more property titles are not a bad option.
Real estate / property investment includes land; different types of dwellings such as house, townhouse, unit, apartment; office, warehouse, shop etc.
Remember what I always say, "invest within your budget", and "knowledge is power".
In future, links to my posts will be sent to those who request them by messaging me.
Thank you very much for reading.
Wishing you a very happy, healthy and safe 2018.
Commenting on “Risk-averse Aussies say real estate not wisest place for savings”
https://www.domain.com.au/money-markets/riskaverse-aussies-say-real-estate-not-wisest-place-for-savings-20171221-h08r7h/
It seems "time" is moving faster and progress is pushing on in all directions, so much so that most people are lost, not knowing which direction to take, and therefore are too afraid to make long term commitment.
These days, many things are made NOT to last, and that include relationship. In many cases, things and relationship can be grouped as disposable.
By now, you may get a bit annoyed because this is a real estate blog and you don't come for a lecture about life. Well, you can just stop reading, and after all this is the last post of the year, and for some, this is the last post for good. I shall not be intruding into your FB life because I shall invite selected people only to have access to my site.
However, if you do read on, you may change your mindset, and be a wiser person especially in real estate investment.
Real estate investment is a long term investment. For those who are married, the decision is not unilateral, and the cost of divorce can be a real nightmare because property ownership settlement can be fairly ugly. There goes the "happy moments" living in a disposal era!
The real estate boom in Melbourne began to dwindle in 2015, and the so called gurus and experts who never admitted their over optimistic predictions began to wave their white flag in October 2017.
A property in Glen Waverley sold in late 2015 for over $2.6m has been back in the market for a while with an estimated of $2.2m. Apparently, there was an offer of $2.4m, but the vendor rejected it. The question is, "was the offer genuine?".
Real estate is the least liquid of all investments, which means it cannot be converted to cash easily, with the exception during the crazy, out-of-control market similar to that previous 5 years.
Early entrants at the boom cycle, bought and sold for quick turn around do make good money. As what I pointed out in one my blogs, when greed sets in and those invest more and more using the get-rich-quick principles will face their judgement during the last leg of the boom.
I have been encouraging you to drive around the outskirt of the Melbourne's already build-up suburbs. If you have done so, you will see very clearly there is plenty of space for a lot more housing development.
Before "suburbanisation", Camberwell was the boundary for the east, and later the line was drawn further out to Box Hill. Glen Waverley was still very sleepy in the early 70's.
In the 60's and 70's, flats were built for those who could not afford to buy landed property; in a way they were sub-class investors. In the 70's, the word "apartment" began to appear, because Hong Kong migrants start to "settle" in Australia. The humble "flat", a British word with a single syllable, was replaced by the a bit more "sophisticated" word known as "apartment".
What is happening now in the apartment market is very similar to what happened in yesteryear, except the apartment sale has been repackaged to attract those trendy generation, and those who would be better off spending their money, being pampered by 6-star hotel staff around the world, living on the top floor enjoying the view of the "clouds".
The first house my wife and I owned in mid 1970's cost $28K, and we sold it for about $31.5K. It was then sold for $138K in 1999 by the owner of that time. When construction of the Eastern Freeway was announced, it jumped to $368K in 2006. The current estimate is about $930K.
Has the present owner done anything to the house? None, what so ever; no extension nor major renovation within.
I sold a property in Glen Waverley to a client for about $295K in 1995. The buyers wanted to back off, but I put my foot down and insisted they should raise the fund to buy it. I told them NOT to let that golden egg slip pass. The property is worth around $2.4m by my estimation.
I cannot do it now, insisting my client to buy a property, because only qualified advisers can advise their clients how to invest specifically. That's is why I am rather vague when some readers message me for more specific advice.
I did not have much knowledge about real estate then; I thought investing in real estate was only a game for the wealthy. It is not true, because not every property costs millions of dollars, and not every property is for personal use that must suit very stringent criteria.
It is true that real estate investment does not suit many people, but if you have children to pass on your inheritance, I think one or more property titles are not a bad option.
Real estate / property investment includes land; different types of dwellings such as house, townhouse, unit, apartment; office, warehouse, shop etc.
Remember what I always say, "invest within your budget", and "knowledge is power".
In future, links to my posts will be sent to those who request them by messaging me.
Thank you very much for reading.
Wishing you a very happy, healthy and safe 2018.
