Are any investors finding it difficult to buy?
- Thread starter tigerGT
- Start date
Nathan mentioned it, we met in Blacktown and looked @ some units
Mmmm as I said in a previous post:
If demand drys up then it takes many months for vendors to become conditioned to new pricing. Prices will not drop on 1 July after being at a more inflated level the day before on 30 June.
I would say that the lower end of the market is fairly bullet-proof anyway. Even without a grant or a boost this end of the market was always moving.
As investors we are always out for a bargain (me included) but the $300K ship might just be sailing off over the horizon
TigerGT:
No.
Signed another contract for some more land last week, oops, this week. Plus just signed a build contract, plus off to auctions next week.
Buy well when I can afford it...and when I can't afford it, get creative.
No.
Signed another contract for some more land last week, oops, this week. Plus just signed a build contract, plus off to auctions next week.
Buy well when I can afford it...and when I can't afford it, get creative.
Allan
Good point so anyone waiting and expecting to buy at lower prices after June could be waiting for a looong while.
However, the vendors are quick to put up prices.
I saw a property selling for $359K a few weeks ago and a similar one went to the market yesterday and they want $400K for it.
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I honestly think the longer people wait the more money they will be spending.
I sold another property to an investor this week and there were a couple more investors through the homes today plus more phone enquiries from Sydney investors. Yes a few FHB have come back after I went about 6-8 weeks without seeing ANY but aswell as upgraders and investors well and truly back in my marketplace I have been seeing more Asian people. Bear in mind that I am down the coast and not in Sydney so since being on the estate I have seen very few Asian buyers, however this week I have had 3 lots through, 2 paid deposits but one couldn't get finance. I always feel that the Asian people do a lot of due diligence and wonder whether if they feel the time is right this is another buy signal to take heed of?
Yes I know the above is just my little neck of the woods again but I am also personally seeing good things through colleagues all through the state including several sales this week around $1.2m and several around $800,000 - these are highly unlikely to be FHB. The world of real estate is NOT about to collapse in a heap on July 1st!
I sold another property to an investor this week and there were a couple more investors through the homes today plus more phone enquiries from Sydney investors. Yes a few FHB have come back after I went about 6-8 weeks without seeing ANY but aswell as upgraders and investors well and truly back in my marketplace I have been seeing more Asian people. Bear in mind that I am down the coast and not in Sydney so since being on the estate I have seen very few Asian buyers, however this week I have had 3 lots through, 2 paid deposits but one couldn't get finance. I always feel that the Asian people do a lot of due diligence and wonder whether if they feel the time is right this is another buy signal to take heed of?
Yes I know the above is just my little neck of the woods again but I am also personally seeing good things through colleagues all through the state including several sales this week around $1.2m and several around $800,000 - these are highly unlikely to be FHB. The world of real estate is NOT about to collapse in a heap on July 1st!
Is an idea.
I get agents calling me on daily basis of late presenting me with undervalued bargains, but pretty stringent on what I take.
Today (saturday) I had 4 diff agents SMS me their must sell with prices where they'd sell at. It is getting harder to find the great deals where you make $100k for signing contracts but they are out there, as i post them from time to time.
I believe we will see prices go crazy even after the 1/7/09. Its not all FHB action.... its positive sentiment.
Just here on SS we have heaps of members saying they going to hold back till this time, if the whole market waits till the 1/7/09 and then nothing negative has happend by late 09 then those people will get tierd and go ahead with their purchases.... therefore there is still a massive pool of buyers in the market for the fin yr 2010.
Its all happend before... BTW I hope i can pick up property cheaper, but fear this wont be the case.
I think you are right Nathan, lots of investors we talk to as well, who do not want to compete with FHBs, are holding off till 1 July.
Taken together with what BV (Bill) says I think we are in for some more action post 30 June. Vendors are putting prices up as they see others around them sell for good $s.
Some of the FHBs we've been talking to, are having valuers mark down what they have offered to pay - and when their LVRs are high it means they can't get finance. But the property still sells at the higher price to someone else with more cash.
Property shows are back, reno shows are rageing, even peter spann is sending out property newsletters pro property.
It has got legs, just need to make sure the legs carry the market running thru the checkpoint, and not crawl across the line lathargic and out of breath.
I am pulsatingly optimistic about the next 12-24 months.
It has got legs, just need to make sure the legs carry the market running thru the checkpoint, and not crawl across the line lathargic and out of breath.
I am pulsatingly optimistic about the next 12-24 months.
Interesting, reading through these posts. It's generally BA's saying buy now and others saying it's a sellers market (which I agree with) so wait until boost is gone...
I would sell now too, if thats the plan.
However I was also the guy being pelted with rocks last year for buying property when steve keen was out tehre saying prices will fall by 40% and buying everything with rates almost double digits. I always think its great to buy well value stock. I just dont see the market retreating 50k a prop or that on the bread and butter homes. There are less homes being listed of late aswell which may suggest that we are running out of sellers. after july 1, if every1 is selling now before grant ends, how many new listings will be coming on market? Guess its all relevant.
Just depends on timeframe, and what impact this will have on market. None of us know what impact will be unfortunately. Just being controversial as per usual
However I was also the guy being pelted with rocks last year for buying property when steve keen was out tehre saying prices will fall by 40% and buying everything with rates almost double digits.
I always think its great to buy well value stock. I just dont see the market retreating 50k a prop or that on the bread and butter homes. There are less homes being listed of late aswell which may suggest that we are running out of sellers. after july 1, if every1 is selling now before grant ends, how many new listings will be coming on market? Guess its all relevant.Just depends on timeframe, and what impact this will have on market. None of us know what impact will be unfortunately. Just being controversial as per usual
Good thread, ... enjoyed reading it.
Nathan .... great work, .... well done.
Vic Govt has made the announcement (see link below) that they will expand bonus for first home buyers. This should help keep the property market ticking along from July 1st in Victoria. It will be interesting to see if other states follow ....
http://www.hotspotting.com.au/index.php?act=viewArticle&productId=1233
Martin ....
Nathan .... great work, .... well done.
Vic Govt has made the announcement (see link below) that they will expand bonus for first home buyers. This should help keep the property market ticking along from July 1st in Victoria. It will be interesting to see if other states follow ....
http://www.hotspotting.com.au/index.php?act=viewArticle&productId=1233
Martin ....
I am more conservative then everyone here, I don't know why people are treating this recession so lightly.
Unemployment HAS NOT filtered through yet, yes people are being retrenched but we are yet to fully realise the lag affect of a bad economy.
I am and always will be PRO property, buy when you can afford and don't be focusing on short term market movements.
This is very important.... DO NOT FALL INTO THE TRAP OF BUYING FOR SHORT TERM GROWTH.
DO NOT FALL INTO THE TRAP OF BUYING FOR SHORT TERM GROWTH.
Seriously consider your positions at work, seriously consider the demographic of the areas you are purchasing into, and read up on the economy and consider that we are in a 1 in 60 year economic event which will have serious affects on the money supply and sentiment. The two very things that will create growth.
Now is the time to look for bargains, NOT TO BE WORRIED ABOUT BUYING BEFORE A BOOM.
--------- Seek professional advice, do your own research and form your own strategy --------------
Unemployment HAS NOT filtered through yet, yes people are being retrenched but we are yet to fully realise the lag affect of a bad economy.
I am and always will be PRO property, buy when you can afford and don't be focusing on short term market movements.
This is very important.... DO NOT FALL INTO THE TRAP OF BUYING FOR SHORT TERM GROWTH.
DO NOT FALL INTO THE TRAP OF BUYING FOR SHORT TERM GROWTH.
Seriously consider your positions at work, seriously consider the demographic of the areas you are purchasing into, and read up on the economy and consider that we are in a 1 in 60 year economic event which will have serious affects on the money supply and sentiment. The two very things that will create growth.
Now is the time to look for bargains, NOT TO BE WORRIED ABOUT BUYING BEFORE A BOOM.
--------- Seek professional advice, do your own research and form your own strategy --------------
What's happening now that's happened before is that those selling real estate keep touting it's a great time to buy.
Buy Now! Be Quick!... yeah right.
I went out the burbs looking yesterday, and what i see is a whole heap of properties in that 270-350k bracket coming on the market, and another raound of price decreases.
Sure that trashed & vandalised, or termite ridden places may present an opportunity to some people, but that's not the general market.
The general market is that most buy property, pay for it rather than make an ROI, so they later they buy the more they have saved in holding costs.
Interest rates are so low, and money is being handed on every street corner because the flush button was pressed on the world economy.
All the "Buy Now, Be Quick, Better Hurry" has caused all the credit to be maxed out, many out there (like Sparky) were only just holding on.
But the banks would've made a loss, so they need to cut rates and let some catch up so they can avoid losses, but many won't.
Mortgagee sales will likely rise soon.
Spann??? does he really count?
Buy Now! Be Quick!... yeah right.
I went out the burbs looking yesterday, and what i see is a whole heap of properties in that 270-350k bracket coming on the market, and another raound of price decreases.
Sure that trashed & vandalised, or termite ridden places may present an opportunity to some people, but that's not the general market.
The general market is that most buy property, pay for it rather than make an ROI, so they later they buy the more they have saved in holding costs.
Interest rates are so low, and money is being handed on every street corner because the flush button was pressed on the world economy.
All the "Buy Now, Be Quick, Better Hurry" has caused all the credit to be maxed out, many out there (like Sparky) were only just holding on.
But the banks would've made a loss, so they need to cut rates and let some catch up so they can avoid losses, but many won't.
Mortgagee sales will likely rise soon.
Spann??? does he really count?
Piston
Decreases?
Where did you look?
Just courious because that's not what I see
Fantastic - congratulations OO. You are gathering a substantial chestnut pile there for the winter.
We also have taken a leaf out of your book and purchased something this week.
All of the family has joined in this time around, so it's been a massive learning experience for them, and a new experience for us taking partners along for the ride for the first time.
Just a boring concrete box, but it should serve us well.
My experience of just selling (finally sold!) - Cashed up investors are prepared to pay $290,000 when first home buyers are prepared to pay up to $355,000. The property was $100/month positive for me so there was no need to take crappy offers.
Last month I found a property for my sister in Bris that was about $60,000 cheaper than similar properties. (Divorce sale) The properties I've been watching in Bris have gone up about $30,000 - $50,000 in last few months. I'm expecting them to drop back down in about 6 months. My Perth property barely went up in FHB rush so I'm not expecting any major drops in those areas. Plus exployment in Perth seems a bit stronger than Bris. Not sure if it was just my experience but some of the first homebuyers didn't seem to have their ship together, I think a few will be ill-prepared for an ongoing mortgage commitment so we'll see a few more bargains popping up in 6 - 12 months.
