Jul 10 2013, 04:58 PM
QUOTE(EddyLB @ Jul 10 2013, 01:53 PM)
Just to offer the other side of the POV.....
Increase in Net Wealth is only possible if an investor takes the risk. If the investor is risk averse, then he has no chance of increasing Net Wealth in property. For the risk takers, although they have to live with higher risk, but they have the chance of increasing Net Wealth (or reducing).
Eg. Investor who are willing to take the risk in 2006/7 (like paikor), then the 5 properties have already giving returns of 2-3 fold. He is multi millionaire now. But investor who chose not to drown in debt in 2006/7, he is very safe and sleeps very well at night. But he didn't get the returns from the property boom.
So, all depends on individual's risk appetite. If you ask me how is the property market now, I would say 50-50 chance of either still going up, or it will go down. Risk takers will still go for it. And risk averse investors will wait and see
Ever watch the BBC series called "Vikings"? There's a saying in that show that makes a lot of sense and it's goes something like... "only start a battle if you're sure you'll win it" ... Same applies here... At 50:50 chance of going up... I think it's best to wait and see till the odds are better... 07/08 was the time when I was sure and went in... Now I'm just waiting for the next cycle to begin... Unfortunately and obviously there are some who entered late and are now finding it difficult to realise their paper profits... I think someone mentioned it earlier as "a fool looking for a greater one" Increase in Net Wealth is only possible if an investor takes the risk. If the investor is risk averse, then he has no chance of increasing Net Wealth in property. For the risk takers, although they have to live with higher risk, but they have the chance of increasing Net Wealth (or reducing).
Eg. Investor who are willing to take the risk in 2006/7 (like paikor), then the 5 properties have already giving returns of 2-3 fold. He is multi millionaire now. But investor who chose not to drown in debt in 2006/7, he is very safe and sleeps very well at night. But he didn't get the returns from the property boom.
So, all depends on individual's risk appetite. If you ask me how is the property market now, I would say 50-50 chance of either still going up, or it will go down. Risk takers will still go for it. And risk averse investors will wait and see
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