I have read countless times on blogs, or magazines, about people who seem to be able to buy properties so easily. So they will write on their blog/magazine like : "this week, i didn't know what to do, and i was in the mood of buying a new property. and lucky me, my agent called to tell me about someone who wanted to sell quickly his unit in bondi, and so i went to visit it, and i could buy a unit in bondi for 80% of what its worth." and these guys seem to buy units like i go to the grocery shop. they buy one each week. and they seem to always spot awesome deals. so, are those people already rich business owners (which they don't tell you)? are they big BSers trying to sell you another book ?
i don't see how anyone in this market could sell his unit at such discount. or even at any discount. even if the owner is in a hurry to sell, most sellers (all?) pay an agent to deal with the sale, and the agent will sell at least at market price. are there any property in this market that sell at a discount really ? i'm talking specifically about sydney. in remote areas, yes, it will sell at a discount, but what is it worth...
i personally check with my lender, and no matter how nice and attractive the property is, if my lender wants to lend me say 500k, i don't see how i can buy a 700k nice unit that rents very high. lenders are risk averse usurers, i don't see how they would give you a loan unless you show serious $ incomes. what do these people do ? if they run a very profitable business ok, i believe they can do house shopping weekly. else, i don't see how it is possible. the property magazines are full of stories each month of john doe who was jobless and started to invest in property with just $1000 on his account, and became owner of a property empire in 5 years time. Are these stories BS to sell you the magazine or to quickly go and take a mortgage loan, or are they genuine stories ?
confused thoughts, but what's your view on these kind of stories we hear about every day ?
It is always possible to get bargains. Though most sellers are much more savvy these days, there is always the decoration disasters. Loads of people won't buy a place with bad decorating as they are scared their pals will think that they like it. Old kitchens bathrooms etc are not always as expensive to renew as u think . Another thing u can do is pick a less attractive suburb, it is amazing how suburbs change character when a new demographic moves in. I was always told to try to get something with an upside eg if you buy a home needing a new kitchen, you still get capital gains on the kitchen value even though that money is still in your pocket.
there is also a lot of B/S around - bargain units it Bondi r a bit of a long shot IMHO
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Loads of people won't buy a place with bad decorating as they are scared their pals will think that they like it. Old kitchens bathrooms etc are not always as expensive to renew as u think . Another thing u can do is pick a less attractive suburb, it is amazing how suburbs change character when a new demographic moves in.
i don't see how anyone in this market could sell his unit at such discount. or even at any discount. even if the owner is in a hurry to sell, most sellers (all?) pay an agent to deal with the sale, and the agent will sell at least at market price. are there any property in this market that sell at a discount really ? i'm talking specifically about sydney. in remote areas, yes, it will sell at a discount, but what is it worth...
I have paid for my house and so I have a lot of equity. I can use that equity as security to buy another property and let it out. I could probably buy 10 properties with my leveraged equity if I so desired. I may do that at some point but at the moment, where I am, it just doesn't add up as an investment that I would want to leverage into.
Meanwhile, if you want to invest in property, there is no free way into the front door. You have to save for a deposit, pay down a mortgage for a while and build up some equity.
You can't walk into the bank with a business plan along the lines of "I want to be a property investor". Not at least until you have a 100k or so in equity.
BTW, if an agent tells you that a property is discounted or very cheap, ask them why they are telling you that. Why aren't they telling their mother or brother if it is so good an investment. Why tell a complete stranger? Contact Profile
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
You carry on like kids trading marbles, this fake success from property is breeding a new generation of douches that has never existed before in the history of man kind!
I have read countless times on blogs, or magazines, about people who seem to be able to buy properties so easily. So they will write on their blog/magazine like : "this week, i didn't know what to do, and i was in the mood of buying a new property. and lucky me, my agent called to tell me about someone who wanted to sell quickly his unit in bondi, and so i went to visit it, and i could buy a unit in bondi for 80% of what its worth." and these guys seem to buy units like i go to the grocery shop. they buy one each week. and they seem to always spot awesome deals. so, are those people already rich business owners (which they don't tell you)? are they big BSers trying to sell you another book ?
i don't see how anyone in this market could sell his unit at such discount. or even at any discount. even if the owner is in a hurry to sell, most sellers (all?) pay an agent to deal with the sale, and the agent will sell at least at market price. are there any property in this market that sell at a discount really ? i'm talking specifically about sydney. in remote areas, yes, it will sell at a discount, but what is it worth...
i personally check with my lender, and no matter how nice and attractive the property is, if my lender wants to lend me say 500k, i don't see how i can buy a 700k nice unit that rents very high. lenders are risk averse usurers, i don't see how they would give you a loan unless you show serious $ incomes. what do these people do ? if they run a very profitable business ok, i believe they can do house shopping weekly. else, i don't see how it is possible. the property magazines are full of stories each month of john doe who was jobless and started to invest in property with just $1000 on his account, and became owner of a property empire in 5 years time. Are these stories BS to sell you the magazine or to quickly go and take a mortgage loan, or are they genuine stories ?
confused thoughts, but what's your view on these kind of stories we hear about every day ?
It's much harder than it was to accumulate 20 or 30 properties or even 5 or 10 than it used to be. That's a combination of the current regulations that insist that all deals must pass a strict serviceability test and the new Valex system brought in to stop lenders and brokers choosing valuers who had a history of bringing in more generous valuations.
Mortgage Insurers have exposure limits so investors have to try to buy under 80% to avoid the LMI restrictions.
There are people who have the wealth or equity to accumulate more property, but there are a lot of people who just like to bullshit to boost their egos. If you listen to them carefully they will give little hints about their real circumstances. After awhile you will learn to pick the difference based on your own experience.
Any expressed market opinion is my own and is not to be taken as financial advice
Years ago property development was candy from a baby. Buy a badly painted house with an overgrown garden and you could spend a few weeks on it and flip of for a 25% gain.
You could buy a fibro on a 1/4 acre block (my first house), knock down the fibro, split the block and double your money (30 years ago).
But everyone knows these tricks now. You can't bake bread in the oven or roast fresh coffee beans to put 10k on a house anymore. People have seen them do that on Location, Location, Location, The Block, Selling Houses and Property ladder.
Even the old sell high in the city and move cheap to the country trick has been covered on A Place In The Country.
Once everyone knows how the shell game works, it doesn't work anymore.
doubleview
11 Aug 2014, 10:18 PM
Are you scum bags serious!
You see, whatever you think you know about property, these guys know just that bit more and it gives them the edge. They are so successful, that they spend their Friday nights partying with the elite on yachts in the harbour before going home to their penthouses overlooking the opera house. They probably pay someone else to post for them whilst they are busy enjoying the fruits of their boundless real estate knowledge.
You and me my friend are the losers. If only we had listened.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
I have read countless times on blogs, or magazines, about people who seem to be able to buy properties so easily. So they will write on their blog/magazine like : "this week, i didn't know what to do, and i was in the mood of buying a new property. and lucky me, my agent called to tell me about someone who wanted to sell quickly his unit in bondi, and so i went to visit it, and i could buy a unit in bondi for 80% of what its worth." and these guys seem to buy units like i go to the grocery shop. they buy one each week. and they seem to always spot awesome deals. so, are those people already rich business owners (which they don't tell you)? are they big BSers trying to sell you another book ?
i don't see how anyone in this market could sell his unit at such discount. or even at any discount. even if the owner is in a hurry to sell, most sellers (all?) pay an agent to deal with the sale, and the agent will sell at least at market price. are there any property in this market that sell at a discount really ? i'm talking specifically about sydney. in remote areas, yes, it will sell at a discount, but what is it worth...
i personally check with my lender, and no matter how nice and attractive the property is, if my lender wants to lend me say 500k, i don't see how i can buy a 700k nice unit that rents very high. lenders are risk averse usurers, i don't see how they would give you a loan unless you show serious $ incomes. what do these people do ? if they run a very profitable business ok, i believe they can do house shopping weekly. else, i don't see how it is possible. the property magazines are full of stories each month of john doe who was jobless and started to invest in property with just $1000 on his account, and became owner of a property empire in 5 years time. Are these stories BS to sell you the magazine or to quickly go and take a mortgage loan, or are they genuine stories ?
confused thoughts, but what's your view on these kind of stories we hear about every day ?
my mom and dad bought over 150 properties in their life. They built up a knowledge in that area, also they had some luck. Peter I have bought 20 or so. It is like a hooker i suppose, some women fuck say 30 to 50 different men in their life, hookers fuck that many a week. Peter
I have read countless times on blogs, or magazines, about people who seem to be able to buy properties so easily. So they will write on their blog/magazine like : "this week, i didn't know what to do, and i was in the mood of buying a new property. and lucky me, my agent called to tell me about someone who wanted to sell quickly his unit in bondi, and so i went to visit it, and i could buy a unit in bondi for 80% of what its worth." and these guys seem to buy units like i go to the grocery shop. they buy one each week. and they seem to always spot awesome deals. so, are those people already rich business owners (which they don't tell you)? are they big BSers trying to sell you another book ?
i don't see how anyone in this market could sell his unit at such discount. or even at any discount. even if the owner is in a hurry to sell, most sellers (all?) pay an agent to deal with the sale, and the agent will sell at least at market price. are there any property in this market that sell at a discount really ? i'm talking specifically about sydney. in remote areas, yes, it will sell at a discount, but what is it worth...
i personally check with my lender, and no matter how nice and attractive the property is, if my lender wants to lend me say 500k, i don't see how i can buy a 700k nice unit that rents very high. lenders are risk averse usurers, i don't see how they would give you a loan unless you show serious $ incomes. what do these people do ? if they run a very profitable business ok, i believe they can do house shopping weekly. else, i don't see how it is possible. the property magazines are full of stories each month of john doe who was jobless and started to invest in property with just $1000 on his account, and became owner of a property empire in 5 years time. Are these stories BS to sell you the magazine or to quickly go and take a mortgage loan, or are they genuine stories ?
confused thoughts, but what's your view on these kind of stories we hear about every day ?
It is certainly not easy. It takes alot of hard work, saving, research and you literally have to live and breath property to get a good understandning on what is happening.
The first rule is property is a street by street market, dont believe the overall figures of price growth or declines. You always have people wanting to sell quickly due to divorce, unemployment, bankruptcy and so on. Those sales are out there and normally sell for below market prices. By having a large network of real estate agents that you know they will and do let you know of sales comming to the market that might be a bargain. Building networks takes time and effort.
I find it easier to gain equity by building properties. Typically the value of properties increases between 20-30% from the cost to produce it in most markets. Factor in costs such as taxes, selling cost and overall profit may be 15-20%.
People who say it is easy most likely have no clue, it takes alot of effort and time. The present market is hard as prices have already increased. Developements I am building now I bought the land 2 or more years ago when prices were much cheaper, so when they complete I can sell them at much higher prices then I could two years ago. Land prices in Perth have increased by approximately 30%. That is most of my profit.
In short no it is not easy, hence why I dont post much as I am to busy and tired.
You carry on like kids trading marbles, this fake success from property is breeding a new generation of douches that has never existed before in the history of man kind!
+1
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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