Hi All
I'm new to this forum having stumbled across the many wonderful discussions you all have been having from google when I first typed in 'units vs land'.
Was very pleased that find out that the community here do look out for one another esp when there's someone panicking and try to give advice where possible.
I was just wondering if it's about time to add my bit of discussion, having been a viewer for the past few months.
As seen from my topic above, I am keen to hear ppl's views on Hawthorn Vic at the moment, particularly in relation to 2 br units.
How does one price an investment property in today's market? I know what the market is willing to pay for a 2br unit in Hawthorn, based on auction results. But is the market price the fair value for a 2br unit in Hawthorn? That I'm not sure.
Because market price = fair value only when the market is rational.
I suspect that due to the FHOG, markets are a little irrational at the moment and therefore market price > fair value price.
As with the golden rule of investing, you lose your profits when you pay too much for a property, even if it is in a blue chip suburb. It's like buying Macquarie shares during the boom times, only to find it sadly going down when the market re-adjusts its expectations.
I would love to buy in Hawthorn, but only if the price is right. The problem is, I don't know whether the price is ever going to be right. They say property prices always goes up, but does that mean if I overpay now I won't lose out anyway because prices are bound to go up anyway?
Hope I'm not talking gibberish here and people actually understand what I'm trying to get at.
Looking fwd to ppl's thoughts on my first post.
I'm new to this forum having stumbled across the many wonderful discussions you all have been having from google when I first typed in 'units vs land'.
Was very pleased that find out that the community here do look out for one another esp when there's someone panicking and try to give advice where possible.
I was just wondering if it's about time to add my bit of discussion, having been a viewer for the past few months.
As seen from my topic above, I am keen to hear ppl's views on Hawthorn Vic at the moment, particularly in relation to 2 br units.
How does one price an investment property in today's market? I know what the market is willing to pay for a 2br unit in Hawthorn, based on auction results. But is the market price the fair value for a 2br unit in Hawthorn? That I'm not sure.
Because market price = fair value only when the market is rational.
I suspect that due to the FHOG, markets are a little irrational at the moment and therefore market price > fair value price.
As with the golden rule of investing, you lose your profits when you pay too much for a property, even if it is in a blue chip suburb. It's like buying Macquarie shares during the boom times, only to find it sadly going down when the market re-adjusts its expectations.
I would love to buy in Hawthorn, but only if the price is right. The problem is, I don't know whether the price is ever going to be right. They say property prices always goes up, but does that mean if I overpay now I won't lose out anyway because prices are bound to go up anyway?
Hope I'm not talking gibberish here and people actually understand what I'm trying to get at.
Looking fwd to ppl's thoughts on my first post.