Blanket statements

From: Apprentice Millionaire


Blanket statements I have heard:
"People who buy investment properties in the same postcode in which they live are wasting their money"
The latest one I have read from John Fitzgerald (flyer for Untold Wealth seminar):
"If you buy a new unit for an investment you are a fool".

What do people think of these statements?

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)
 
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Reply: 1
From: Owen .


I own my home and live in a postcode that has one of the highest growth rates in Sydney. I bought my 2nd IP last year in the same area because it was a deal and I am getting similar growth. Yes, it helps to spread IP's a bit wider but if the numbers stack up, why not?

I guess it all depends on your postcode.
 
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Reply: 2
From: Jeanette .


I wouldn't buy a new unit because I think they are overpriced. I think the vendors play on the 'sparkle' appeal of a new building to make people buy emotionally rather than on reasoned figures.
 
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Reply: 2.1
From: Ian Findlay


I agree that new units are overpriced. The developers also push the tax
advantages a little too strongly.

Ian

----- Original Message -----
From: "propertyforum Listmanager" <listmanager@bne003w.webcentral.com.au>
To: <Recipients of 'propertyforum' suppressed>
Sent: Tuesday, May 15, 2001 12:18 PM
Subject: Blanket statements


> From: "Jeanette ." <jeanetteadams@bigpond.com.au>
>
> I wouldn't buy a new unit because I think they are overpriced. I think
the vendors play on the 'sparkle' appeal of a new building to make people
buy emotionally rather than on reasoned figures.
>
>
>
> To reply: mailto:propertyforum.3650@bne003w.webcentral.com.au
> To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
> To login: http://bne003w.webcentral.com.au:80/~wb013
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Reply: 2.1.1
From: Dave :)


Great...John Fitzgerald has just shot down my ego and confidence in one hit!

....maybe I'll recover once I talk to him and buy some old properties in HIS postcode (or those of his mates?!)

...like Michael Croft said - they just want to grab your attention and lead you to believe they know stuff that you don't..convincing you that their seminar is a must if you're to succeed in the world of property investing.

...I'm going now, before I say too much that could be misconstrued...

Cheers AM

Dave

p.s. Has your first IP settled yet and have you sorted out the HIH issue?..just curious.
:)
 
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Reply: 2.1.1.1
From: Apprentice Millionaire


Hi Dave

>p.s. Has your first IP settled yet and have you sorted out the HIH
>issue?..just curious.
>:)

I have actually called in both the state and the federal government to help me out :) So my IP should settle in the next few days.

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)
 
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Reply: 2.1.1.1.1
From: Dave :)


Good on you AM...I enjoy your posts too so keep up the good work.

Dave
 
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Reply: 3
From: Felicity W.


One thing that I discovered at the John Fitzgerald intro night is that he's involved in large scale suburban house developments.
That's all I have to say.
Keep smiling
Felicity :cool:
 
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Reply: 4
From: Charles Homme


"If you buy a new unit for an investment your're a fool".

I just hate it when people generalise like that. Some new units can be overpriced. However, some can be absolutely fantastic.

For those that know Melbourne, there is a project being built on the corner of Fitzroy St and Canterbury Rd, St Kilda. 119 apartments, 21 specialty shops and restaurants and a David Jones Food Supermarket.

All 119 apartments sold out last July in 2 weeks, mainly to investors. Construction just happening now. Many apartments re-valued for bank purposes (by the bank)six months later (December 2000), and showed an average increase in sworn valuation of $70,000.

Using a deposit bond as a deposit (Cost approximately $2,000), this equates to an annualised return on investment of 6,900%. Is there anyone out there who thinks I am a fool for buying one of these?

This obviously doesn't happen all the time, and occassionaly a property of this quality comes along, and great profits can be made from these new units. I am only concerned on ROI (Return on Investment), and purchasing new units, off-the-plan, on some occassions can provide an outstanding ROI.

Fantastic opportunities do come along with new units, so this very general statement can be very misleading, and I for one don't agree with it.

Charles
 
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Reply: 4.1
From: Dave :)


Well said Charles...I agree with you 100%..couldn't have said it better
myself.

Dave
 
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Reply: 5
From: Michael G


Hi,

I live in Quakers Hills (rent) and bought a townhouse there in 1998 for $167k, found out yesterday that the townhouse which is attached to mine (so its a pretty fair indicator of price) sold in March for $230k which is about 38% growth over the last 3 years.

Here's the most simple point to note about all this. What do you do if this guy promotes a suburb or street which will be the best place to invest in, and you ALREADY live there?

We're investing in RESIDENTIAL property, which means we're investing where people live. Factoring in the need that you too also have to live somewhere means occasionally these two locations will sometimes be the same.

What do you do then?, don't invest? If he has a free info night, it would be a good question to raise :)

Michael
 
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