Buyers market?

[astroboy]

Originally posted by Aceyducey
TFB,

Don't forget that property is an asset you CONTROL.

There are many different ways to create your own CG.....

Renovation, replacement, sub-division, repurposing, etc

You may even be able to flip it quickly for a few bucks

Cheers,

Aceyducey

Well put Acey, there are many ways to create CG... and... an asset you control, often a big $ asset, that you have bugger all of your *own* money invested in.
Sounds good to me.
ab

 

[thefirstbruce]

"Renovation, replacement, sub-division, repurposing, etc"

Acey, one could argue the profit on a short term thing is in the buying price esp with renos and splits.

I have been looking around for a splitter or something I can throw a granny flat under/beside recently. And it isn't that easy to make the prices stack up.

Where I do think there are opportunities is in the price bracket outside of most people's consideration. i.e. subdividing a block selling for more than $500,000. A lot of individuals wouldn't consider this, and these blocks are sometimes too small for bigger developers. The vendors can be keener to sell as well now that they believe things are softening. It is a nice little boutique niche, but you have to take a professional approach. And I am treading cautiously as the holding costs would kill me if I didn't plan well.

 

[Aceyducey]

Originally posted by Mr Turkey
The time to buy is when people sell for tax losses.

No Mr Turkey.

The time to buy is whenever the numbers add up.

Cheers,

Aceyducey

 

[Mr Turkey]

The time to buy is whenever the numbers add up.

They add up all the way down.

Have a look at the long term charts of abc ugl mah wyl as examples. Find the bottom and note the month is June in all cases. This panic sell down is from people selling for tax losses.

The thing is if someone sells for a loss the lower the price the bigger the tax loss. So they are very motivated sellers (see charts mentioned above) who drive the price down dramatically.

Now will be ever see tax loss selling in property? Maybe, if people find that its not going up anymore. They are negative geared and can only sell for a loss. People with gains in one property and a loss in another might sell both to balance the books.

Mr Turkey

 

[astroboy]

Originally posted by Mr Turkey
The time to buy is whenever the numbers add up.

They add up all the way down.

Have a look at the long term charts of abc ugl mah wyl as examples. Find the bottom and note the month is June in all cases. This panic sell down is from people selling for tax losses.

Mr Turkey

What ??? Obviously english is not your first language. I don't understand a thing you are talking about. Can you elaborate or be more ......... readable ??
ab

 

[Aceyducey]

Originally posted by Mr Turkey
Now will be ever see tax loss selling in property? Maybe, if people find that its not going up anymore. They are negative geared and can only sell for a loss. People with gains in one property and a loss in another might sell both to balance the books.

Turkey,

People who bought a few years ago would have to dramatically reduce the price of their properties in most cases to sell at a loss on their purchase price due to CG.

The only people who may sell at a loss would be those who bought very recently or bought badly.

I think your view on this is highly unlikely.

Cheers,

Aceyducey

 

[Freedom]

LB

Re: the database at realestate.com

I, too, have wondered why they don't get in the business of metadata?

Do they even sell lists to real estate agents of new listings each week?

I have also wondered whether the internet has not had a permanent effect on prices. Would the boom in Hobart have happened without mainland investors being able to check properties? I think, if yes, to a lesser impact.

Maybe, apart from interest rates at long term lows, the internet has had a permanent effect on prices?

 

[Mikhaila]

Interesting point Freedom, I tend to agree with you regarding the Internet making the difference. It was certainly one of the factors during the tech crash as people could buy and sell without talking to a broker at the comfort of their home and very often media influenced the decision.

The property searching phase has changed forever. I hate to think what it would be like if we could buy and sell properties over the net in the future similar to shares…

M.

 

[thefirstbruce]

Mikhaila, imagine property sales via ebay.
The smarter REAs understand there will be a major change in the industry in the next 5 years.
As long as we keep moving towards a more informed seller and buyer, then everyone wins.