Are any investors finding it difficult to buy?

Hi,
I have recently found it harder to convince myself to buy an I.P in the range I am looking for. I was looking to buy an IP in the 300-400 range and in the areas that i am looking a house that 3 months ago would sell for 360k they are now listing it and asking for 430k. Everything is selling for 30-40 more than what it was late 08/Early 09. I am finding it hard to convince myself to pay these prices. Is anyone in the same predicament as me?

thanks
 
Yes!!

Obviously depends on area but I think in Melb Metro at least unless you're looking to buy an expensive place (750, 800ish+ - these have fallen a bit i think) there would be no harm in waitng a year or two for usual IP range stuff...

In the 'blue chip' suburbs FHBG seems to have pushed up prices to a < 4% GROSS yield... Its a bit crazy.
 
Yes, the good stuff is going quick and up in price, I am struggling in the same bracket $300-$400k.

Hanging on now till July 1, to see what happens, unless a bargain comes my way!

Big Tone
 
I am glad im not the only one! I am seeing many potential I.P however without government 26k i dont see it as a good option. These FHB have a $26,000 headstart and the funny thing is that they still whinge. They are so lucky. Many people had no head start or only 7k back in the days and no SD exemption.
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At these prices in the 300-400 range I would prefer to wait and see what happens as prices are reflecting low yields again and are more expensive than late 2003 prices in my area.
 
Good idea to sit back and wait guys. It is the same on the coast and everything in that price range has practically been sold. If not, they are snapped up fast. I was able to sell an IP for 420k that I had previously been told was worth 370-380k.:D

There will be some great deals in a few months. Stay practical and not emotional.:)

Regards JO
 
A few good ones pop up occassionaly out in the burbs, but with the FHB rush to get in before July, I see no point competing with others at a 24k handicap.
Still not seeing 03 prices up here though. Some are far from it.
Mainly those new developments under mortgagee sales.
I fell sorry for them, but I think I'm going to stop saving the world and just take their money and smile when (and if) the FHBG ends.
 
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I am glad im not the only one! I am seeing many potential I.P however without government 26k i dont see it as a good option. These FHB have a $26,000 headstart and the funny thing is that they still whinge. They are so lucky. Many people had no head start or only 7k back in the days and no SD exemption.
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At these prices in the 300-400 range I would prefer to wait and see what happens as prices are reflecting low yields again and are more expensive than late 2003 prices in my area.

I'm not sure where you are getting 26k from??

From NSW OSR
The $3,000 New Home Buyers Supplement is in addition to the $7,000 First Home Owner Grant and the Australian Government’s $14, 000 First Home Owner Boost. With the NSW Government’s New Home Buyers Supplement Scheme, first home buyers of new homes will receive maximum benefits of up to $24,000.

But you're not even competing with the 24k grant kids, because you're not going to find a new build in Sydney for 300-400k are you??

and the funny thing is that they still whinge.
You're not whinging are you ;)
 
Why don't you get in touch with a buyers agent in another city? I know 300-400k can get you a townhouse in Brisvegas with a good yield..
 
Why don't you get in touch with a buyers agent in another city?

How could I let that go thru to the keeper :D.

Good advice vb - as BAs we do get the jump on a lot of stuff before it hits the market. I see good deals on a weekly basis and really good deals at least every 3 - 4 weeks without even looking hard.
 
Seems you buyers agents giving yourselves a plug forget that agents & vendors want to get the best price and expose the sale to the widest possible market.
Any active buyer buyer will find the same deals.

And if I ever catch an REA doing secret deals....well most are no longer REAs.
 
Seems you buyers agents giving yourselves a plug forget that agents & vendors want to get the best price and expose the sale to the widest possible market.
Of course they do and in a perfect world that happens all the time. But perhaps you forget that there are lazy agents, out-of-area agents with listings that they don't know the real value of, desperate & anxious vendors who are going thru a divorce or the bank is closing in and the last thing they want is the neighbours seeing OFIs etc.

Any active buyer buyer will find the same deals.
Well at the risk of repeating myself, (and since you did too :p) I've said on previous occassions:
I will be the first to admit that we as Buyers’ Agents are not for everybody.
If you:
• have the time and patience to go looking for a property or properties, attending ‘open-for-inspections’ and auctions,
• know what price you should be paying for a particular property,
• get calls from Real Estate Agents when good value properties are about to come onto the market (before they are advertised),
• are confident putting in offers, negotiating and dealing with Real Estate Agents and the games they play,
then you probably don’t need a Buyers Agent.

And if I ever catch an REA doing secret deals.
What is a secret deal?
There are plenty of off-market share transactions that take place with out going through the ASX, just as there are plenty of RE transactions that take place without ever being listed on re.com, or having a photo in a REAs window display or having a for sale sign erected.
 
Sellers market for sure, this stuff on allhomes, gets "offer" written up on side of it straight away. no chance for negotiations , sit back and be patient;)
 
phew - i thought i was a nutter waiting - but something was telling me to.

as much as i want to jump in now, i am FORCING myself to wait until Aug / Sept / Oct.

I'd liek to see the FHOB effect play out.

cheers.
 
I am glad im not the only one! I am seeing many potential I.P however without government 26k i dont see it as a good option. These FHB have a $26,000 headstart and the funny thing is that they still whinge. They are so lucky. Many people had no head start or only 7k back in the days and no SD exemption.

It doesn't matter that they have a "head start" over you.

What about the cashed-up investor who can pay cash? They have the head start, and they are always around.

Just move forward based on your own plans and figures, and pay no attention to anyone else's good or bad fortune.
 
phew - i thought i was a nutter waiting - but something was telling me to.

as much as i want to jump in now, i am FORCING myself to wait until Aug / Sept / Oct.

I'd liek to see the FHOB effect play out.

cheers.

I'm with you, but still looking so if the right deal comes along, then I'd be comfortable buying now.
 
So, in Aug/Sept/Oct we will have a plethora of 'waiting' investors hit the market just in time for the Spring sales and a very Happy Christmas for vendors....and an unhappy one for FHB's...? Could this happen...?

It's being mentioned plenty in media that many many investors are waiting, waiting , waiting...waiting for what..? All waiting for the same thing to happen then hit the market all at once....?:eek:

Don't ya think ya setting up for a market to rise when all this pent-up demand comes flooding in...?

Just questions that I'm sure will get answers here....;)
 
Exactly my thoughts thorpe, If all these investors on sidelines move in July/Aug/Sep then we are going to see more upward pressure from all the investors. I think however with new bank lending criteria that there will be less out there looking for stock. but the same question you raise plagues me too!
.
options
1. pay 20% more now for what was 20% cheaper 6 months ago due to FHB demand on 300-450 range
2. Pay more than 20% after July/aug/sep coz rates drop again and all investors get off the sideline
3. wait and house prices come of boil end of 2009 and then buy

Who has crysal ball?
 
Tiger

I agree it's very hard to find something of good value.
But didn't you buy 3 IP's not long ago?
What do you want more for? ;)

cheers
 
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