Auctions slump signals end of boom

Its either a boom or a slump!

Anything inbetween just doesn't sell papers.

I understand that last weekend and the upcoming weekend have a large number of properties due to the post Xmas stock coming online. That may partially explain the poor clearance rate. Lets see if it continues under more normal conditions.

The inner suburbs were scheduled to slow this year after a stellar run last year. IR warnings were probably the reason the market was looking for.

The outer suburbs are more interesting. If the ripple gets broken before it takes hold there will be some nice yields develop over the next year or so. Especially if prices drop a little
 
Yes ... the articles are the same here in Perth.

Agents told me I'd get $890k - $900k for my 4 yr old home in Karrinyup ... So I sold it myself asking for offers close to $1 mill.

Sold it twice in two weeks ... last one a cash offer at $985k.

If I believed the papers and RE's I'd have lost $100k.

Sensationalism sells papers ... and the best time to invest was always yesterday (literally speaking).
 
muzz22 said:
I'm confident that the feeling will not be one of regret but relief.

Property doubles every 7 yrs doesn't it pieman? Your delusional.
Click to expand...

Well, since 1985 I've been buying and selling PPoR's, and since 2001 buying IP's, and every single one of those properties has gone up heaps.

I wish I had been able to keep 'em all.
 
Hi

I watch the Parramatta market.

Two units came up for auction in the last fortnight in Harold street.

Excellent looking units - 2 bedrooms, renovated kitchen/ bathroom, lockup garage, - the first went for $212k.

The second one (lower floor, IMHO less attractive) - there was one bid at $210k and that was it - no further bidding.

The owner and the agent went into a huddle and, amazing, I read on Sunday that it went for $228k.

Either way the agent was either a great negotiator (the buyer was bidding against himself), or the purchaser of the first unit got a bargain (relatively speaking) at $212k.

Prices have dropped in Parramatta, and continue to do so.

Tony
 
So I am reading articles stating that the 'boom is over'. Then I read postings suggesting bargains soon to be on the market. I am asking how do I know when to stop waiting and when to start buying these bargain IP's??
 
Lilli said:
So I am reading articles stating that the 'boom is over'. Then I read postings suggesting bargains soon to be on the market. I am asking how do I know when to stop waiting and when to start buying these bargain IP's??
Click to expand...

Don't rely too much on newspaper articles - do your own research - for example, read lots of threads on here.

For some areas - such as inner melbourne houses - it could be argued that prices won't go up much in the near future, probably not until the next cycle.

Not all outer suburbs have had a large increase in repossessions (are these the bargains you are referring to?). Some outer suburbs are chugging along OK.
 
Lilli said:
So I am reading articles stating that the 'boom is over'. Then I read postings suggesting bargains soon to be on the market. I am asking how do I know when to stop waiting and when to start buying these bargain IP's??
Click to expand...

It's a little bit like buying petrol.

Everyday, you see the prices on the signs as you drive around. You see the prices go up one day, down the next.

They might stay the same for a week or two after a jump up in price, then drop 5c per litre one day. You know that's a good day to buy it cheaper than normal.

Through constant observation you get to know what is happening.

Property is similar in that you watch your particular investment area, get to know the values and see the changes. You will know when it's time to buy.

Deeper research however will tell you things that others don't see. For example; a number of new businesses, a new housing estate and a school are under construction in an area that is normally a bit of a sleepy hollow, cheaper, but near a good employment area. This is a sign that the area is about to expand, maybe boom.

Be careful of listening to the papers; the reports they give are of a general nature, with a few anecdotes of certain areas, but it does not reflect the whole city or country
 
L.AAussie said:
It's a little bit like buying petrol.

Everyday, you see the prices on the signs as you drive around. You see the prices go up one day, down the next.

They might stay the same for a week or two after a jump up in price, then drop 5c per litre one day. You know that's a good day to buy it cheaper than normal.

Through constant observation you get to know what is happening.

Property is similar in that you watch your particular investment area, get to know the values and see the changes. You will know when it's time to buy.

Deeper research however will tell you things that others don't see. For example; a number of new businesses, a new housing estate and a school are under construction in an area that is normally a bit of a sleepy hollow, cheaper, but near a good employment area. This is a sign that the area is about to expand, maybe boom.

Be careful of listening to the papers; the reports they give are of a general nature, with a few anecdotes of certain areas, but it does not reflect the whole city or country
Click to expand...

Good analogy and good advice.
 
muzz22 said:
Both properties were acquired pre CGT as part of a deceased estate. Why didn't i use a LOC? I have no desire to pay my bank 8.5%. I'd much prefer they pay me:D
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No experience in investing then and not a clue how to play the game! What an idiot letting go properties that were given to him and costing nothing to hold - talk about looking a gift horse in the mouth!
 
sparky23 said:
No experience in investing then and not a clue how to play the game! What an idiot letting go properties that were given to him and costing nothing to hold - talk about looking a gift horse in the mouth!
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Hi Sparky,

I actually think he made this up. Anyway, he is banned now. No doubt the mods looked at this post as well and decided that he should be reprimanded for making such a ludicrous remark!
 
sparky23 said:
No experience in investing then and not a clue how to play the game! What an idiot letting go properties that were given to him and costing nothing to hold - talk about looking a gift horse in the mouth!
Click to expand...
If an investment is about to plummet why continue to hold it debt or otherwise ? There will be much better returns in other markets in the coming years, residential property is not the place to be right now. I'd say this guy had some good advice- "The Game" also includes knowing when to take your profits and go elsewhere.
 
joeExpat said:
If an investment is about to plummet why continue to hold it debt or otherwise ? There will be much better returns in other markets in the coming years, residential property is not the place to be right now. I'd say this guy had some good advice- "The Game" also includes knowing when to take your profits and go elsewhere.
Click to expand...

I tend to disagree Joe.

If you are including shares into this topic, then I would agree, but we are talking only about property in this case.

The costs involved in selling the properties, plus any CGT, then getting back in again in a few years time when it is supposedly better, are very steep, and will erode away much of the profit.

On top of that, selling properties is a pain in the backside; dealing with pesky agents and pesky buyers, legal guff; too hard - I'd rather swim with piranhas.

I just like buying 'em and seeing the rental statements every month :).

Also, if you add to that my belief (based on experience - I'm old) that well selected and located property never really goes down in value; it just levels out for a time, then it is always good to hold 'em.

So, my view is to hold those better properties, cause they will still go up in value during flat spots, albeit not as much as we'd all like, and access the equity in them to invest into those better markets you mentioned.

That way, I've got double the bang for the buck.
 
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suburbangirl said:
Well whoever was doing that front page article for the Sunday paper wasn't at the action I was at over the weekend - inner/middle ring Melbourne house quoted 350k plus, sold for close to 450k.

Those bidders sure as hell weren't "sitting nervously on their hands".

Hmmm...
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It really depends on the area I guess, I've noticed the slow down out here, Altona Meadows, Point Cook etc, the inner suburbs must still be going hot. It's really interesting that there is a huge difference depending on the location.
 
investwest said:
It really depends on the area I guess, I've noticed the slow down out here, Altona Meadows, Point Cook etc, the inner suburbs must still be going hot. It's really interesting that there is a huge difference depending on the location.
Click to expand...

Location, location, location. :D
 
muzz22 said:
I'm confident that the feeling will not be one of regret but relief.

Property doubles every 7 yrs doesn't it pieman? Your delusional.
Click to expand...

Care to share your networth with me and if its greater than mine then I'll bow to your superior fiscal skills.
pieman
 
L.AAussie said:
It's a little bit like buying petrol.

Everyday, you see the prices on the signs as you drive around. You see the prices go up one day, down the next.

They might stay the same for a week or two after a jump up in price, then drop 5c per litre one day. You know that's a good day to buy it cheaper than normal.

Through constant observation you get to know what is happening.
Click to expand...

Of course, if you spend too much time driving around looking for the best petrol price then you may have a bit of a problem :D
 
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