The investment cycle

What boom?
Well, nobody told me about it!!
I'm sorry, but I'm of the opinion that until rental yields catch up and affordability improves prices will remain in a plateau period in most of Sydney. Yes, there are always going to be areas of high demand that will buck the trend (no matter what stage of the cycle we're in) and people overpaying at well publicized auctions because they fall in love, but generally we are in a bit of a lull.
Having said that, buying opportunities abound for those willing to do their homework and work hard to find them. It may take longer, you may face rejection and spend money that you didn't want to (b/p reports, solicitors etc) but you have time on your side in markets such as the one we're experiencing. In a doom and gloom market, why not make the most use of your housing dollars and negotiate hard to get an even better result?

Consider yourself told, hehe Rates are going up so that must mean a boom is imminent!

Seriously though, I'm catching onto this homework business. I have found two properties in particular that only a mother could love, but I can see through their weathered facade. I can see why they are so cheap, but I can also see how to oh so easily add value. I just wish my broker could get his act together!

I've got an appointment with a different broker next week (he was recommended on here the other day, and is local). So hopefully he can organise things a little better. I have faith!

I have never been involved in 'adding value', so I can't wait to get my hands dirty!

Thanks again all.

AFR comes out every day doesn't it - do you subscribe to the lot or is there one days issues that's particularly better than the others?

It comes out six times per week. I subscribe to all six. I have only been through a week now and realised today must be the careers issue; lots of jobs advertised. The weekend edition is more weekend-like. This weekend is going to have a spread on property investment.

It's only $62 a month so I snuck it into my salary as a subscription allowance.

The other guys here should be able to expand on the different issues. Market wrap is in it every day and as you can guess, it's a wrap of the market (mainly shares and derivatives - edit: and futures/commodities, I guess, and probably more too)

-T-

Hmm. thats allot of reading to do. Thanks -T-.

Hehe, I don't read all of it. I don't really know what the etiquette with reading AFR is, but I just skim through it and read when a heading catches my eye. That may equate to about 5-10 stories. I also read those little highlight bits in the front that usually point to a story further into the paper. That way I get a rundown of the main stories and can then chose what to read.

I must admit though, I've been spending a whole lot of time reading this week and not much time working. That's going to have to change sooner or later.

There have been some good generic stories too. I read that the Snowy Hydro company makes more money when their systems are off then when they're on. They issue securities to other energy companies who want to hedge risk. So we have this great hydro power system that could support 70% of Australia, but is only on 14% of the time! It doesn't sound right, but that's what they said.


-T-