The current property market is like a dose of white arsenic sprinkled into a wedding cake.

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers. Find the original post as published at this link: http://www.crei-academy.com/the-current-property-market-is-like-a-dose-of-white-arsenic-sprinkled-into-a-wedding-cake/

Please note that we are NOT the original writers of this blog post. All credit goes to the original writers.

Take a bucket of piss and call it granny’s peach tea – For six years since Q3 2012, my views on the current state of the private land market remains what it is.

The scent of money in the water often contributes to a feeding frenzy. Buyers move in like a lion and come out like a lamb — constantly.

I’m not going to bore readers (and potential buyers) with painted numbers and showroom statistics to prove a point. Has the current property market taken its toll on my realism? No. I am still realistic. I just keep it secure behind a carapace of scepticism.

I am constantly amazed how current buyers act like flies drawn to light. They hopelessly believe there’s a light behind the door. And I’m the one who has to tell them the door is locked, and the bulb burned out a long time ago anyway (six years to be exact). The machine required to eat, and they were in the plate. The media and most people who lived and dreamed out the machine did not get it.

What’s the difference between a catfish and a property developer?

A man told me once that when you get towards the end of your road, you need to check at the community woodpile and choose if you added to it while you were here or if you simply took it. I sleep great at night. However, I wonder about”them” and their kind. Home developers of today are takers from the woodpile.

The developer’s tactic was clear — when strapped with land to purchase and decent property to sell, pad it with quasi-factoids. Agents further embellished the tale of easy money and by the time buyers had purchased it, any profits of profit that might have been there were long gone.

The truth never stands in the way of a fantastic story. Then, there are people who, fooled by sales agents and developer’s tagline, think they are partaking of functions based on authentic investors. Within the markets lay some inkling of the greater game that was being played, one in which current buyers were more than a pawn but under a king.

These days, everybody appears to believe in Santa Claus. How’s that? Since they believe in something for nothing. Latest buyers are exuberant into the chance of profitability, sometimes to a point beyond rational estimate of probabilities. It’s also a parable on the dangers of excessive leverage fuelled by childish exuberance by buyers and programmers alike. Many will choose to believe the whole farrago, against their own better sense.

Changing facts and fiction — it’s plausible. The”experts” could piss in a cup and eager buyers would call it wine, but I offer them pure cold water and they squint in suspicion and mutter to each other about how queer it tastes. (FYI: I recently bought a simple half-a-million-dollars selling a property bought in 2011)

Advice for middle-class private home buyers: A property showroom is a buyer’s paradise, where everything is carefully designed to allow you to crave the lifestyle that looks a lot more real on the walls than in fact.

A costly home is expensive to maintain especially one that is bought at the wrong price. In case you had one, you need to spend time in it to justify purchasing it. That sounds kind of like putting the cart before the horse. You borrow heavily against future earnings to have an expensive liability which gets you old and broke very quickly.

Advice for yet-to-be-investors: In the markets there are 3 things for you to always consider: the knowns, the known unknowns and the unknown unknowns. It’s your job to master the first two and always be prepared for the third.

Advice for current”investors” who bought properties recently: at this time, you’re no longer entitled to refer yourself as an”investor”. You may call yourself a speculator, but not an investor.

All of your life various individuals,”experts”, self-vested-interest profiteers and the likes will tell you things. And most of the time, probably ninety-five percent of the time, what they will tell you’ll be wrong. It’s a fact of life. It’s hard to know who to believe.

If you want to learn TRUTHS that hardly any property experts are willingly to disclose, check out my NEW eBook,”Real Estate is a Harsh Mistress”. 

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