Month: August 2017

Property Valuation see commonly is you know if Melbourne has done .percent you know the stats have since until the end of commercial property valuers Brisbane value or general data says over eight percent that’s probably the better way so that that rising tide lifting all ships and we know the reason why you no charges double household income lower interest rates it’s been a phenomenal time hold bricks and mortar in Australia over that period of time so I think that the mistake that we just quoted Melbourne but of course there are examples all around.

The country but I think the mistake that investors are making is properties are always going to double or if it’s a percent the rule of suggests it’s a nine-year doubling cycle and just not getting into the localized market enough we talked about this Australia is not one big mark made of hundreds of sub markets and I think that still investors are getting bogged down by the fact that if buy property it’s going to double in eight or nine or ten years and the facts are a lot of properties that are being built right now that investors are taking up want to see that automatic darling cycle and moving forward more than ever so for me one of the biggest mistakes as i see is people-just having this unquestionable faith residential real well continue to cycle as it has in the past and therefore all they’ve got to do is put the name on the title that’s just a recipe for disappointment and I and I think if you make the decision as I just like a number but and then you don’t realize until you’re.

That you’ve made the decision rock Koep kat hose years back no and as you get close to retirement your risk profile changes everything so opportunity cost looking you’ve right in the face yep so and then you never have seen the debt and the things not going up in value you’re getting ink you’re getting rent but the rent is really servicing the debt and you ‘re getting depreciation which is effectively artificial cash flow what you’re going to have to give back when you sell it into art it’s just yet sorely be one there Bryson’s so it’s a blind faith about the doubling cycloid some is the second mistake I see we’ve you know you hear us go on and on and on about asset selection and the science that is property investing and that science getting better and better know.

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