a lot of people say, in property, its how long you are in the market, not when you buy OR if you buy well, it doesnt matter when you buy
ignoring, mining towns dependant on the only miner in town or overpriced $15m penthouse apartments, OTP and assuming residential property for hold and buy
Hindsight is a wonderful thing! but
for anyone who bought or knows someone who bought a property that has dropped signficantly over say a 2-5 year period,
did the numbers stack up at this point?? or were yields very good/poor at this point?? did you buy because it was a bargain at the time, eg market value $500k, got it for $450k?
or was it the best deal at the time, eg market yields were 3%, while you picked one up at 4%????
or would smart investors identified that poor yields = poor investment, and not purchased which pretty much eliminates the 'time in RE" and 'buy well anytime' sayings!
Im looking at a few areas that have dropped up to 40% in the past 4-6 years, the fundamentals stack up really well, yields are good now, so was wondering whether people who pruchased at +40% prices were just idiots or the figures did stack up at the time?
Its not me, but I think anyone who happened to own flood prone property in Brisbane!
But no, I have seen people pay well over the odds a number of times at Auction in the last 6 years. HUGE numbers and I know they would still be losing money today. Yield would still be crumby and they would have no capital gain.(a loss in real terms)
Only twice did it go when I wished I had parted with the money instead.
Once - I just wasnt organised financially(I will kick myself til the day I die on that one) and the second I probably underestimated the rarity of what was on offer.
So there are plenty of idiots out there. People get emotional over houses.