If you had only 250k to buy a house, where would it be and why?

[natmarie73]

Waroona is a nice 'little' place, 112 km from Perth and 43 km from Mandurah, we have a relly in a retirement Village in the town so have visited a few times

http://www.visitmandurah.com/destinations/waroona

I've been to Waroona a few times too, and it is a nice little place. The nearby lake is a pleasant place to spend the day and plenty of national parks and bush tracks to explore.
Don't know if I'd want to commute into Perth on a daily basis though but if you're FIFO like my friend's brother it is not an issue.

For $250,000 you can still get some good buys in Mandurah/Rockingham as well I'd expect if you didn't mind older style units.

 

[sanj]

Does Douglas think we're all idiots?

 

[Mom]

Mind you, by the time interest rate is 7% the property price already gain significant value. Could be double, and people will think today's price is cheap

I doubt it. Up is not the only way, depending on the economy, they can go down.

Everyone sounds so optimistic. I've seen what bad purchase do to people. I've attended too many of mortgagee sale. And it's not only happen to people with bad money management, it happens to investors too.

"Be fearful when others are greedy and be greedy when others are fearful." - Warren Buffett

 

[strongy1986]

I doubt it. Up is not the only way, depending on the economy, they can go down.

Everyone sounds so optimistic. I've seen what bad purchase do to people. I've attended too many of mortgagee sale. And it's not only happen to people with bad money management, it happens to investors too.

"Be fearful when others are greedy and be greedy when others are fearful." - Warren Buffett

Wouldn't you just look somewhere else in the meantime?

Or are you one of those that believes Sydney is the only market worth investing in.

Your effectively taking yourself out of the market for a couple of years
Which is enough time for another market to go from 7 to 12 o clock

 

[Doug Ithier]

Little confused?

How did you buy it so much under market value?

It's not often, actually very very rarely that the bank will value something above purchase price. And if comparable properties are selling for $340,000 then why wouldn't the bank value the property at $340,000

All of this isn't adding up, do you know the developers builders to get a below market price? Please provide more info

Hi Brady, the purchase is $275k because the land developer is reasonable with the land price ($95k). The builder is Ventura Homes who gained exclusivity on the lots by providing reasonable build prices ($180k).

I am CEO & Licensee of the company marketing these, but doesn't mean personally I am not an investor, nor that this investment is unique for me. When I personally saw this estate when we were not involved, I liked it so much I wanted it for our investors. So I made inquiries to get the agency.

I've been watching this thread since June and many other threads for some time. It was only when natmarie73 wrote "you couldn't get anything for $250,000 in WA" with a sad face that I felt the need post my personal experience.

The banks value these at or around the purchase price. Most investors understand what happens to the build value when they bring a completed property to the market in a good area. A good technique for researching the 'value for money' fundamental in your due diligence, is to look at what is being marketed or sold in your investment location of similar configuration. Its not an exact science but can give you a 'feel'.

Sorry if you thought my post resembled sales but it wasn't my intention. After re-reading my post now I can see what you mean. I can only say I was excited at the time I wrote the post after just receiving my bank valuation.

If property was your field of business, how would you post about something you thought was a good investment without it coming across pitchy, and does me being associated with FPA make the investment less appealing? I dont hide who I am or what I do so please take my words as intended.

Thanks knightm for linking the information, but I posted what I did as an investor like most forum members. I just provided information that there are low priced investments in WA. Feel free to complete due diligence on my investment and present any feedback here if it isn't a good investment. I like learning new things and I'd like to think I understand a good investment when I see one regardless of where it comes from.

To sanj

Does Douglas think we're all idiots?

would you think any person would successfully run a service based company if they thought people were idiots? Its not fair that you would assume I think this. I believe no person should be sold anything, but every person should be educated and informed.

Is this where I write how you can contact me to purchase? joke

 

[natmarie73]

It was only when natmarie73 wrote "you couldn't get anything for $250,000 in WA" with a sad face that I felt the need post my personal experience.

My bad, I was only thinking of Perth and completely forgot about the cheaper regional areas - not that there are too many cheap regional areas left.

 

[sanj]

Doug,

Thanks for clarification. The reason we are often sceptical is that people often come here to spruik their wares with no intention of sharing anything else or contributing in any meaningful manner. In your case i was especially suspicious because you recommended a property you bought but you did not declare that you were also selling that property and others like it and so stood to gain from the recommendation you were giving.