Blown away again...

Bl00dy melbourne RE...boy is it hot. Latest interest was a 2X 2br in a reasonable suburb. Needed some work, but was unusual as it was an ok block with split services in a good street.
My max. yesterday after doing lots of "what ifs" was 880. Whilst driving there i thought "gee id really love to own that - i could possible add another 1/2 on that block ina few years", so I crank my max up to 950k, bearing in mind at the beginning of the campaign they were talking 650k+.
Anyway, I got the odd bid in but when I drove off it was at 1.02m so it wasnt going to be mine. <4% yeilder at that price, seems exe but then again when ever i thought that over the last 15 years I've been wrong.
Back to the drawing board.
pieman
 
This is obviously a suburb that is not experiencing a "winter" in Warren Buffet speak.

Where were all these buyers last year ago when the money was really cheap, but the sentiment was doom and gloom?

Don't get sucked into the current frenzy with over-payers; go find another suburb that is in a winter, and by a few straw hats there.
 
Don't get sucked into the current frenzy with over-payers; go find another suburb that is in a winter, and by a few straw hats there.

Melbourne Age has reports of almost a billion of sales and 80percent clearance this weekend. Another thread talking about a flat in Armadale price that could buy 3 houses in Melton, and more experts talking a 3 year housing boom.

The trick is estimating how far from the CBD this wave of rises will reach (talking 'over' the long term growth - which seems to be happening out probably 20k radius - or am I wrong?

The interesting thing seems to be the range from highest to lowest prices in suburbs with some properties reaching twice the price of others in the same suburbs, so perhaps rather than suburbs, it's time to start looking at type of property. (e.g finding a bargain that the target price range turn their noses up at and turning it into something a target market would pay over the odds for, be it a luxury renovation on an Armadale unit or a FHB makeover on something less grand.

Thoughts?
 
The interesting thing seems to be the range from highest to lowest prices in suburbs with some properties reaching twice the price of others in the same suburbs, so perhaps rather than suburbs, it's time to start looking at type of property. (e.g finding a bargain that the target price range turn their noses up at and turning it into something a target market would pay over the odds for, be it a luxury renovation on an Armadale unit or a FHB makeover on something less grand.

Thoughts?
Back to buying the worst house in the best street. Do a reno to improve value. Works for me.
 
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