Some Questions for investors that have sold.

[orion]

Often, once we make a decision - we need to be right about that decision we've made. Therefore, we tend to focus on information and data that supports our original decision, and also search for others that agree with our choices, thoughts and subsequent actions.

These are questions for Glenn (Nelson), Gatekeeper, Crash, and anyone else (Olly Newland if he's listening) who has recently sold their properties.

1) if there turns out to be no crash in the next 5 years, would you have regretted your original decision to sell up?
2) how much of a downturn in percentage terms do you think properties will drop in the area you sold your properties?
3) was there any other reasons you sold, other than thinking the market will drop?
4) are your long term goals to own any properties freehold?
5) if yes - would you sell them again if you thought the market was going to drop again half way towards your goals?
6) if you did own them all freehold after reaching your goals, would you consider selling them if you thought the market was going to drop by say 20 - 25%, even though the income from them would continue?

P.S. please see my thoughts and a few other posts in the "Investor or Speculator" thread, and also the article I wrote for PT in the article section titled "Who Benefits."


Regards
Graeme Fowler

[Gatekeeper]

Re: Some Questions for investors that have sold.

[quote="orion"]

1) if there turns out to be no crash in the next 5 years, would you have regretted your original decision to sell up?

I didn't sell because of a crash, it was the top "value" I believed I could get in the cycle.
Whether it sits there for another five years or whatever with inflation eating at its value or the price goes down quickly makes no difference.
I had wanted to sell the property for a few years, but just had to wait until the right time. No regrets either way.

2) how much of a downturn in percentage terms do you think properties will drop in the area you sold your properties?

Probably not much, but prices could sit for years while inflation catches up.

3) was there any other reasons you sold, other than thinking the market will drop?

The house I sold turned 100 years old!!!!
It was a very tidy place, great earner and had great CG too, but I always wondered how many borer were holding hands in those dark cavaties
Like Ollie says, there are times to sort the wheat from the chaff, and the property didn't suit me anymore. I'm very happy with the CG.

4) are your long term goals to own any properties freehold?

Yes - I now have three freehold properties + cash.

5) if yes - would you sell them again if you thought the market was going to drop again half way towards your goals?

Depends on the circumstances at the time.

6) if you did own them all freehold after reaching your goals, would you consider selling them if your thought the market was going to drop by say 20 - 25%, even though the income from them would continue?

I do and No - My goals can be more lifestyle orientated these days. For years I've fitted in with my PI's, now they need to fit in with my lifestyle which is to be at home with my family (kids 4 & 8 ) and to spend heaps of time in the garden, thats my hobby.
I own both my neighbouring properties so I spend a lot of time in those gardens too I'm earning income from the accommodation, which is enhanced by my hobby. Win win situation for me and I get to be an at home mum. Goal achieved, and it only took 23 years

[orion]

Hi Gatekeeper,

Thanks for your reply.
Apologies, but for some reason I had the impression you had sold everything from some of your earlier posts.
The questions are really for those investors that have sold all their properties recently (like it sounds as if Olly has by his comments last Sunday on TV) because they believe prices will drop.
I am just wanting to see what peoples' reasoning and logic behind their decision is, as I can't see the point of it.

Regards
Graeme Fowler

[Gatekeeper]

I didn't think Ollie had sold everything.
Just cashed up. Does that mean he owns no property?

Is their a transcript from the Sunday program?
Anyone?

[muppet]

Hi Guys

Gatekeeper said

Is there a transcript from the Sunday program?

Would love to see a transcript of the TV1 program as I was watching the TV3 program.

Anybody got any idea whether these transcripts are available? If so can a web link be posted please.

Regards

[Gatekeeper]

Here you go Muppet http://tvnz.co.nz/view/news_national...%3fformat=html
You can watch the whole thing!

[cashed4crash]

1) if there turns out to be no crash in the next 5 years, would you have regretted your original decision to sell up?
2) how much of a downturn in percentage terms do you think properties will drop in the area you sold your properties?
3) was there any other reasons you sold, other than thinking the market will drop?
4) are your long term goals to own any properties freehold?
5) if yes - would you sell them again if you thought the market was going to drop again half way towards your goals?
6) if you did own them all freehold after reaching your goals, would you consider selling them if you thought the market was going to drop by say 20 - 25%, even though the income from them would continue?

1. As I have stated in previous threads, there will not be a crash, more a boring slow decline. This is just part of a cycle. There are too many indicators to show that we are now at the top.
2. Who knows, the market will decline as much as it wants. All I know is that when it does there will be years of no growth and plenty of opportunities to buy back in the medium future.
3. Top of market was main reason. I have seen it before. Another benefit was getting rid of houses I had owned for years that were needing painting and maintenance,for top dollar and so easy. Try selling them in a slump. It takes months and they need to be in top condition to get a reasonable dollar. I can't believe what people paid for some of my dumps. I am getting a better return in the bank. It has been great not having to worry about the rentals since I got rid of them. These tossers who go on about being retired at 30 bla bla bla. Running a dozen rentals is like a full time job. Every five years they need a total recon. Doing up two or three houses a year wears you down. Not to mention dealing with the tenants. If you pay others to do it all, it eats into your returns too much.
4. My rentals had been mortgage free for years. I started when I was 17. Iam now 40. By the way, Freehold is a term relating to title. ie not leasehold. Don't confuse freehold with mortgage free. It shows your ignorance
5.?
6.When I bought at the bottom I was getting 12 - 20% yeilds. When I sold, the person who took them off me was settling for 5% and the headaches that go with them. I can get 6% for doing nothing in the bank and it looks like it is going to get better. My old properties look to be going into a slow drift down and with rates rises and interest rate rises. Their owners yeilds are going to go below 5%.
There won't be a crash but prices will fall. There will however be the odd distressed sale over the next few years that I will consider and probably buy.
Put it this way, if I can get a better return and no admin/maint headaches for three - five years and then buy back in over the next five years at a discount, I'll be happy. Who knows what the discount will be. It's lucky dip, that's half the fun of it all.
I have 2,400,000 sitting in cash in the bank. I am not a trader. They were owned for years. The IRD don't worry about me. I still own a house that I am told is worth $800,000. I won't be selling that. I don't care what the price of it does. I like it and have to live somewhere.
Life is good. I will go sailing on buy when the time is right next time.

[cashed4crash]

It shows your ignorance

Hi Graeme,

just reading my post and saw what I had written. I don't mean you are ignorant. Just the fact that anyone calling mortgage free property freehold shows ignorance. Don't mean to offend you

[orion]

just reading my post and saw what I had written. I don't mean you are ignorant. Just the fact that anyone calling mortgage free property freehold shows ignorance.

That's okay, no offence taken. I often say freehold when I realise it should be mortgage free.
Thanks for your comments in your previous post, well done on what you have achieved, that's great!

Regards
Graeme Fowler

[GreatPig]

You can watch the whole thing!

Thanks for the link.

Had to laugh at that guy's comment about the tiny apartments: not enough room to swing a kitten!

I think he's been watching too much Monty Python...

GP

[Gatekeeper]

I just heard it from the horses mouth.
Ollie Newland was on Newstalk ZB this morning and he was asked if he was cashed up. He said yes, but he had only sold off the chaff.

[hawkeye]

These tossers who go on about being retired at 30 bla bla bla

Retirement is different things to different people. I agree with you that Property Investment can be a full time commitment and is like any other owner operated business. Also the ongoing maintenance can be hard graft if you do much of it yourself.

For me retirement is being able to give away my Corporate career which frees up a huge amount of time to do all of the above that I currently do in my family/leisure/hobby time. My partner and I will be able to concentrate on our business without a Marketing Graduate CEO telling us that style/appearance is more important than substance.

Regards,

Neil

[fudosan]

Thank you Gatekeeper for the link. This is a big help for people like me who do not watch the TV any more. These days I spend time reading books, magazines, and newspapers.

[orion]

These days I spend time reading books, magazines, and newspapers.

Hi Fudosan, you're still allowed to watch Survivor on TV though.

Regards
Graeme Fowler

[fudosan]

Hi Fudosan, you're still allowed to watch Survivor on TV though.

Thanks, but no thanks. I only tape some interesting movies once in a while, and then watch them at a time of my choice, minus all the TV commercials. Regards.