I know I’ve been ‘banging on’ about this crazed market for a while, but when anything goes this far above the inflation line and continues to skyrocket, there is always, always gonna be a correction.
This market is so full of hype and external interference that any correction, as we are now firmly ‘IN’ will not be a soft landing. I don’t care if you adopt the brace position, its not going to do you any good.
I have followed my own advice and invested in other asset classes since 2008. My returns, following the leadership of some really, really smart people, have outpaced property 3 to 1, and not once have I had to deal with a stroppy Property Manager or a flea bitten grub of a tenant. Bliss and Happy Days!
Now, using your self managed super fund (SMSF) to buy an investment property has always been a bit of a dodgy exercise. Whilst in no way an expert in SMSF, I am reliably informed that an investment property does NOT meet the basic guidelines of what you can invest in and you are liable to get yourself in a lot of strife with the Regulator. But wait! There’s more! Westpac just pulled the plug on lending to SMSF to buy property! I wonder why? Shock and Horror to some but I can’t believe its taken this long! The other Banks and major lenders will all follow suit shortly I’d imagine. No one wants to be left ‘holding the bag’ when this market goes from a slowdown to a Zip Line ride into a cliff!
Several friends of mine have actually taken my advice and divested themselves of their properties for top prices. They are very happy sitting on their pile of cash – some waiting to buy their own place back for $200,000.00 less! Oh – it will happen. I am old enough to have seen this before.
When you get big banks getting this nervous and making quantum shifts in policy, it’s time to lift your head out of the trough and take a good long sniff before that lion sneaking up behind you takes a huge bite out of your ass!
Educate yourselves and get out of this market NOW!