Same here. I'm selling my PPoR to fund it.
Is anyone buying now?!
- Thread starter Canberra Milk
- Start date
Same here. I'm selling my PPoR to fund it.
I don't think I could've made myself any clearer.
Then it wouldn’t be a good deal right? If you think property will drop by 20% and find something today 10% below market value you wouldn’t be saying to yourself that’s a good deal. However if you find something that is 40% below market value then you would say its a good deal given your views on the future of the market?
A good deal means exactly that i.e. all things considered a purchase is still a "good deal", risk assesment is just one of the many determining factors if a deal is considered good. To me this poll should be a straight yes or no having this third option is a little nonsensical...
A good deal means exactly that i.e. all things considered a purchase is still a "good deal", risk assesment is just one of the many determining factors if a deal is considered good. To me this poll should be a straight yes or no having this third option is a little nonsensical...
Then its not a good deal???
Everyones risk apetite is different for instance a property opportunity might come along with a 10% profit margin (I am a developer) and I dont look twice at it as I am looking (for example 20%). However someone else might be only to happy to take on 10% because "THEY" think its a good deal.
I dont think you will ever label something as a "good deal" if you feel the market is crashing its counter logical UNLESS the price being asked for the property is so low that it compensates and turns it into a "good deal". For instance if you told me you were certain prices would drop 20% and I said hey I can sell you the opera house for 100k, would you say no? You would buy it in an instant because its a damn "good deal".
Maybe I am being pedantic but my view of what makes a property purchase "good" includes, market analysis, risk, profitability etc etc. I have never not purchased something I deem as "good" unless ofcourse I cant afford it.
Everyones risk apetite is different for instance a property opportunity might come along with a 10% profit margin (I am a developer) and I dont look twice at it as I am looking (for example 20%). However someone else might be only to happy to take on 10% because "THEY" think its a good deal.
I dont think you will ever label something as a "good deal" if you feel the market is crashing its counter logical UNLESS the price being asked for the property is so low that it compensates and turns it into a "good deal". For instance if you told me you were certain prices would drop 20% and I said hey I can sell you the opera house for 100k, would you say no? You would buy it in an instant because its a damn "good deal".
Maybe I am being pedantic but my view of what makes a property purchase "good" includes, market analysis, risk, profitability etc etc. I have never not purchased something I deem as "good" unless ofcourse I cant afford it.
Good point. But I can't leverage my westpac shares as much as my bricks and mortar.
Installment warrants might be an interesting play....but that is a thread on another forum.
Voted the third option but equate it with the first in most cases. It depends on how "black and white" I am feeling about my decisions.
To boil it down (pardon the cliches);
I smell fear in the market. Thus my spidey-sense tells me it is time to buy soon. I am contrarian by nature and it has served me well to date.
Fortune favours the prepared. I am arranging my finances now so that I can take advantage of an awesome deal when I see it. Probably a "bread and butter" property. Capital City or large regional area.
I randomnly look back 20 years ago in just regional areas and I see most properties at least tripling in first vs last sale price. Lots has happened in the last 20 years and they have still at least tripled in value, many cases more. This suggests to me that if I can manage maximum investment for ~20 years, things are looking pretty darn good. If I can buy a few at the "bottom" of a cycle, I might be able to make that ~20 years look much shorter.
Also looking to buy in the US. I reckon the exchange rate and 40-60% drops in quality housing spells as close to a sure thing as you can get. If only I can navigate my way through the maze of financing, crud housing, dodgy spruikers, tax and other things faster!
To boil it down (pardon the cliches);
I smell fear in the market. Thus my spidey-sense tells me it is time to buy soon. I am contrarian by nature and it has served me well to date.
Fortune favours the prepared. I am arranging my finances now so that I can take advantage of an awesome deal when I see it. Probably a "bread and butter" property. Capital City or large regional area.
I randomnly look back 20 years ago in just regional areas and I see most properties at least tripling in first vs last sale price. Lots has happened in the last 20 years and they have still at least tripled in value, many cases more. This suggests to me that if I can manage maximum investment for ~20 years, things are looking pretty darn good. If I can buy a few at the "bottom" of a cycle, I might be able to make that ~20 years look much shorter.
Also looking to buy in the US. I reckon the exchange rate and 40-60% drops in quality housing spells as close to a sure thing as you can get. If only I can navigate my way through the maze of financing, crud housing, dodgy spruikers, tax and other things faster!
The only property market I have knowledge on is Melbourne. With the growth that Melbourne properties have had I don't expect the market to do much over the next year except stay the same or go down.
Saying that though the last Melbourne boom seemed to occur overnight (around April-May 2009). One day the property market wasn't doing much then all of a sudden prices went up and everything was selling. I remember following two properties that went to auction in a subdue market they sold then pretty much the next day asking prices went up and everything was selling.
My point is from my experience booms seem to happen overnight sometimes. I can't see a boom happening in Melbourne anytime soon, but you never know.
Saying that though the last Melbourne boom seemed to occur overnight (around April-May 2009). One day the property market wasn't doing much then all of a sudden prices went up and everything was selling. I remember following two properties that went to auction in a subdue market they sold then pretty much the next day asking prices went up and everything was selling.
My point is from my experience booms seem to happen overnight sometimes. I can't see a boom happening in Melbourne anytime soon, but you never know.
I can't see a boom happening anywhere right now but for me this is a good time to accumulate well yielding properties and to keep them for the long run.
I'm doing this now that interest rates are still low and my cash flow is good because when interest rates head north I won't be able to borrow as much.
I'm going to open houses again today.
In fact I'm already late,
adjos
I have noticed some of the major banks turn around times have started blowing out a bit lately. Usually a sign of increasing market activity although this time might be more refi action not sure.
Properties are still selling in sydney even at the top end. I had a client exchange this week on a property listed at $2.8 mil + which clients actually paid $2.45 for so quite a discount. Another party offered $2.6 but wanted 3 months settlement and cooling off period. Property was only listed for 1 week. Not sure what that all means but obviously vendors were keen for quick sale! They did buy it for $1.2 in 2000 with no renos so didn't do too bad..
Properties are still selling in sydney even at the top end. I had a client exchange this week on a property listed at $2.8 mil + which clients actually paid $2.45 for so quite a discount. Another party offered $2.6 but wanted 3 months settlement and cooling off period. Property was only listed for 1 week. Not sure what that all means but obviously vendors were keen for quick sale! They did buy it for $1.2 in 2000 with no renos so didn't do too bad..
Buffett once said, when everyone is fearful it's time to be greedy. Maybe you're thinking too much.
Not really.
Based on your iterative logic, a good deal will only happen for a seller when there are no buyers (because if someone buys it then that means the buyer has found a good deal and the seller shouldn't be selling).
Gee if everyone over-analysed like hic nothing will ever get done.
was making a point about the uselessnes of the 3rd option in this thread...
regarding your comment ill say this, if i had more money right now ill keep buying more development sites.
regarding your comment ill say this, if i had more money right now ill keep buying more development sites.
Why?
What would you do with a new development site in an environment where buyers are about to stop buying and interest rates are tipped to head North?
Its not that credit is about to start flowing again any time soon either....
You obviously have no idea about the time-frames required for getting a development site off the ground.
Credit is flowing to developers with good credit and a history of succesful projects. When they say "tight" credit it simply means some people are getting finance just not anyone.
I run a business, interest rates do not stop me or any other developer from developing just as it doesnt stop people buying property it simply changes what type of properties are being bought/developed.
If food prices jump are you planning to stop eating? So beleive me people wont stop buying shelter either.
Hope this answers why.
Credit is flowing to developers with good credit and a history of succesful projects. When they say "tight" credit it simply means some people are getting finance just not anyone.
I run a business, interest rates do not stop me or any other developer from developing just as it doesnt stop people buying property it simply changes what type of properties are being bought/developed.
If food prices jump are you planning to stop eating? So beleive me people wont stop buying shelter either.
Hope this answers why.
Good point, I forgot about the red tape
