Is anyone buying now?!
- Thread starter Canberra Milk
- Start date
LOL, yes I too will be buying on a hill.
Woohoo! After failing to get finance in December for a property we'd put an offer on (which had been accepted), we changed approach (and brokers!) and found out today that we've had our finance approved for a 3x1 villa in Balcatta, WA. 
Needs a bit of work, but nothing that some hard yards and paint can't greatly improve.
Many thanks to Rolf Latham, who assisted us when we thought all was lost!
Needs a bit of work, but nothing that some hard yards and paint can't greatly improve.
Many thanks to Rolf Latham, who assisted us when we thought all was lost!
just purchased another one, another Melbourne cbd property apartment, first time in 5 years.
large two bedroom apartment 85sqm+ (cant be bothered checking exact size for the purposes of this post).
Comes with car park (car parks will be increasingly rare in cbd)
cash flow positive (with 20% deposit) up to interest repayment rates of 6% (I like to provide a margin of safety, if interest rates drop further, all good, but I like to hedge risk).
Purchase price 10% above medium apartment property prices for Melbourne (ie realestate Melbourne, not cbd Melbourne), yet this is smack in prime location in Melbourne cbd.
Below replacement costs, you cant build in the cbd an 85sqm apartment for purchase price of ball park figure $510k with car park. Off the plan apartments for this size are going for $650k+ (conservative figure)
commercial car parks in the cbd are attracting government taxes of somewhere north of $1500 per year. So what does intrinsic_value do in such circumstances: sorry this is a residential property so no tax, anyone want to rent a car park?????
(by the way its gone already, a nice contract with an another government department, lol, to be signed up on settlement, yes they like the other car park I have already leased to them). Oh I know its illegal, shouldn't be renting out residential carparks, yet here is another government department happy to rent from me (makes it number 2).
You have to love government beucracicy. You just have to make it work in your favour.
Also want to spread my eggs a bit more. Made a killing on the stock market again this financial year. But things on the stock market side of things looking a bit iffy.
May will be the first month I will cop a bit of a hiding, my overseas stock holdings will provide a buffer, but am liquidating some of those holdings now. Locking in those profits, especially with AU$ dropping (rising overseas shares with AU$ dropping equals more profit, I have held those shares for more than 12 month, so CGT (capital gains tax) concessions apply).
In the absence of price, terms, rentals, this sale does not indicate anything. They could have slashed the price and hence the market is getting colder.
Peter
Not sure where you're looking, but trust me the market is hot right now (this is coming from someone who's been telling people it's a weak market in 10/11).
Offer on a 70ies fairly original 4/2 on 700 sqm in Hillarys, WA has been accepted. The guy who initially overbid me "very significantly" was made redundant from his FIFO job, so I was next in line and could even negotiate the price down over minor building inspection findings.
Now fingers crossed for basic reno, loans.com.au, self managing and a coastal relet in summer to get it cash flow neutral in the next 12 months.
Tradies actually call me back, offer reasonable rates and want my custom. This is news in WA.
Now fingers crossed for basic reno, loans.com.au, self managing and a coastal relet in summer to get it cash flow neutral in the next 12 months.
Tradies actually call me back, offer reasonable rates and want my custom. This is news in WA.
Its never too late, but you have more competition.
I would also look at Craigie, and phone relevant Councils in these areas to find out more about pockets earmarked for rezoning.
and another one,
that makes two in the last few months.
Also Melbourne CBD, 2 bedroom with car park.
Also large apartment (for the city) just under 80sqm + 5sqm balcony.
In a nut shell looking at replacement value.
New apartments being built are 30% smaller for 10% higher price, or around 30-40% more expensive for the same size.
That's it for me for a while now.
Bought another old house on a dual occ block in Frankston Vic last month.
Incredibly cheap. 4 bedrooms. 620sqm. Sold for $299,000. Tenant came with the property. The sort of property where you can keep the house and build another up the back once plans are in place.
I own several in Frankston and this was not the cheapest. Still plenty of value out there for people who care to do the work.
Incredibly cheap. 4 bedrooms. 620sqm. Sold for $299,000. Tenant came with the property. The sort of property where you can keep the house and build another up the back once plans are in place.
I own several in Frankston and this was not the cheapest. Still plenty of value out there for people who care to do the work.
