Post up your amazing result (or stupid price) of the week

Deltaberry · 3rd Mar, 2010

I would take CG over yields, but use yields as a proxy.

If yields are exceedingly low it would become cheaper to rent than to buy. You then need to take a view that yield growth will continue to underpin capital growth. So you start looking at disposable income among other things.

Neophyte · 3rd Mar, 2010

While you make more money from CG than from yield, I would have thought that yield helps you discern the underlying asset value. In theory rents should rise at the same rate as CG, in the long term yields should stay similar for a particular property type. However we seem to be getting ever lower yields and people are investing on that basis.

I guess I see accepting low yields as too much of a gamble.
e.g. 3% inflation, 7% interest, 2% costs, yield of 3%

To make an actual profit you would need to have CG >10%. I suppose this is not unreasonable. However in terms of costs and interest you are tipping in up to twice as much as the person actually living there.

You pay 6% a year for the chance to make money if CG is over 10%.

paul2299 · 3rd Mar, 2010

traveller said:
I think it was a record price for a house in Burwood so not sure how we can term it as "Reasonable"...

The Burwood median is now 800k, I don't think 1.4million is unreasonable for a large relatively up to date house in an above average part of the suburb. In a rising market there is likely to be record prices, doesn't mean the price paid was too high.

http://www.heraldsun.com.au/news/burwood-leads-melbournes-property-boom/story-e6frf7jo-1225822681527

beeroll · 6th Mar, 2010

Getting back to the original topic, this one in Marrickville Sydney is a cracker:

http://www.domain.com.au/Property/Sold/House/NSW/Marrickville/?adid=2008191728

According to the agent, $360,000 over reserve - and at $580,000, I think the reserve wasn't too far out of line with what I would have expected...

That is pure insanity. It's like going out into the share market tomorrow and wanting to pay $75 for BHP shares that everyone else is buying for $42.

HappyCamper · 6th Mar, 2010

beeroll said:
Getting back to the original topic, this one in Marrickville Sydney is a cracker:

http://www.domain.com.au/Property/Sold/House/NSW/Marrickville/?adid=2008191728

According to the agent, $360,000 over reserve - and at $580,000, I think the reserve wasn't too far out of line with what I would have expected...

$940k for Marrickville. Wow. I wonder who the buyer was.

Nathan · 6th Mar, 2010

unless you have CASHFLOW that is MASSIVE or PASSIVE you should not even consider studying investing ... Cashflow ladder first, Capital ladder second ... being asset rich and cashflow poor is a killer ... What ladder should you be studying now ????

The above line has been stolen off someone but relevant to some of the posts here

aussierogue · 6th Mar, 2010

Nathan - completely agree

K4K4M · 6th Mar, 2010

This one in Box Hill Nth sold at auction today for $552K.
very good result for 2 bed unit.(land >> 16m X 19m)

http://www.realestate.com.au/cgi-bi...r=&cc=&c=46540700&s=vic&snf=rbs&tm=1267835644

andrew_de_a · 6th Mar, 2010

Thats quite spacious for a 2 bed unit (and its quite new), doesnt seem out of the ordinary to me

MTR · 6th Mar, 2010

Nathan said:
unless you have CASHFLOW that is MASSIVE or PASSIVE you should not even consider studying investing ... Cashflow ladder first, Capital ladder second ... being asset rich and cashflow poor is a killer ... What ladder should you be studying now ????

The above line has been stolen off someone but relevant to some of the posts here

Nathan
never a word been so true.

Cheers, MTR

Player · 6th Mar, 2010

Sold for double the reserve price

Here's a beauty. Went to the auction on Wed for a sticky beak:

http://www.realcommercial.com.au/cg...t=&header=&cc=&c=26966829&s=vic&tm=1267845128

Sold for 3.8 Mill. The property was announced as "on the market at 1.9 Mill, therefore this sold for double

(100 % over) the reserve price.

Vacant possession.

Great location in a vibrant strip, however the retail market has gone nuts. If it's an owner occupier, I can't wait to see what type of cashflow business they have to ammortise/justify a purchase price like that.

To put a tenant in there now as is............the yield wouldn't crack 2 %

Trogdor · 6th Mar, 2010

Player said:
Here's a beauty. Went to the auction on Wed for a sticky beak:

http://www.realcommercial.com.au/cg...t=&header=&cc=&c=26966829&s=vic&tm=1267845128

Sold for 3.8 Mill. The property was announced as "on the market at 1.9 Mill, therefore this sold for double (100 % over) the reserve price.

Vacant possession.

Great location in a vibrant strip, however the retail market has gone nuts. If it's an owner occupier, I can't wait to see what type of cashflow business they have to ammortise/justify a purchase price like that.

To put a tenant in there now as is............the yield wouldn't crack 2 %

Thanks completely bonkers. The purchaser is mad.

Also have noticed that retail in the "blue chip" resi suburbs is crazy. Its either the CBD, dedicated retail strips (eg. sth yarra), or outer areas for value.

mattnz · 7th Mar, 2010

That marrickville purchaser was insane. How can you justify that? 150k still to spend by the look of it.

dunno · 9th Mar, 2010

dunno said:
No, what Im saying is where were these 'buyers' who werent around to buy it for $22k but will now be around to buy it at 3 times the price? Or are you doing reno?

Still waiting on an answer on this one Nathan?

Nathan · 9th Mar, 2010

Sorry,

Nah no reno beig sold as is. Just marketing it better. This one was not on market it came via reffereal of a local in town.

I asked their price and paid it.

dunno · 9th Mar, 2010

Thanks for the reply-if you can pull this off I will dip my hat to you...let us know how you go...

Nathan · 9th Mar, 2010

dunno said:
Thanks for the reply-if you can pull this off I will dip my hat to you...let us know how you go...

Will keep you posted. I am very conservative with my projections, as others here have seen from previous results.

Neophyte · 9th Mar, 2010

Player said:
Here's a beauty. Went to the auction on Wed for a sticky beak:

http://www.realcommercial.com.au/cg...t=&header=&cc=&c=26966829&s=vic&tm=1267845128

Sold for 3.8 Mill. The property was announced as "on the market at 1.9 Mill, therefore this sold for double (100 % over) the reserve price.

Vacant possession.

Great location in a vibrant strip, however the retail market has gone nuts. If it's an owner occupier, I can't wait to see what type of cashflow business they have to ammortise/justify a purchase price like that.

To put a tenant in there now as is............the yield wouldn't crack 2 %

340 sqm. That seems ridiculous. If it was an auction that means that someone else must have been bidding up to say $3.7M. The only way I can imagine paying a super-premium was if you owned half a dozen in a row and wanted to bulldoze and redevelope the whole set. But that can't be true for two people at the one time so the under-bidder must have also have seen value well above $3M.

RocketMan · 9th Mar, 2010

lol $3.8m for a VACANT commercial property in Bentleigh? so even if it's fully leased out, the yield is only ~2%? hahahaha! Where is this idiotic purchaser so I can sell him my Mitcham house for $4.0m

RocketMan · 9th Mar, 2010

btw - nathan's strategy would only work in a small country town where people either a) aren't looking for property and/or b) can't afford a property and/or c) the vendor is really really desperate. It could never happen in a metropolitan area - too many contenders

Post up your amazing result (or stupid price) of the week

More options

Deltaberry

Neophyte

paul2299

beeroll

HappyCamper

Nathan

aussierogue

K4K4M

andrew_de_a

MTR

Player

Trogdor

mattnz

dunno

Nathan

dunno

Nathan

Neophyte

RocketMan

RocketMan

Similar threads