Rags to riches in the current market??

[markpatric]

We`ve all heard about the lucky ones who rode the market and made fortunes in the recent property boom but do you know anyone who has done well in the current market or since prices of R/E have settled?.

Also, seems development is the hot new strategy, is there anyone in the forum new to developing and really making a go of it?.

 

[Glebe]

Be careful using the word 'lucky'.

 

[Bellstar]

Yep I reckon so

Hi everyone,
My first post, so be gentle with me...... I have noticed that there are some bargains to be had on units currently in sydney. Yeah I know that you have to be very very careful where you invest, but I am currently tracking 2 deals that, if the vendor sees things my way will mean cashflow neutral and a heap of equity plus future growth. Beachside suburbs (3 blocks from the beach, small units but inviting..)Now I would prefer a house, but if a deal lands in your lap... then i aint going to say no..

Be interested to hear what everyone has to say... Ill be totally honest, Im a newbie that has "paralysis by analysis", but after 2 years of research, trawling the forums and speaking to my like minded peers, and of course seeing so many areas boom and saying "if only I....." Im motivated to do something about it.

 

[XBenX]

I sourced a deal recently (in the Sydney market) that made quite a considerable amount of instant $$$ if the bank val is anything to go by...

Not a rags to riches story but the deal certainly beats working for a wage...

 

[Corsa]

Hi everyone,
My first post, so be gentle with me...... I have noticed that there are some bargains to be had on units currently in sydney. Yeah I know that you have to be very very careful where you invest, but I am currently tracking 2 deals that, if the vendor sees things my way will mean cashflow neutral and a heap of equity plus future growth. Beachside suburbs (3 blocks from the beach, small units but inviting..)Now I would prefer a house, but if a deal lands in your lap... then i aint going to say no..

Be interested to hear what everyone has to say... Ill be totally honest, Im a newbie that has "paralysis by analysis", but after 2 years of research, trawling the forums and speaking to my like minded peers, and of course seeing so many areas boom and saying "if only I....." Im motivated to do something about it.

Dear Bellstar!

If you have run your numbers and believe that the deal/s are cashflow neutral and some instant equity plus future growth PLUS with the location being near the beach etc it sounds like a great opportunity.

Dont worry to much about the paralysis by analysis...that's in the past now. You are actively evaluating deals and are on the point of pursueing the ones that are right for you at the right time for you which is fantastic.

And even then if you work out that these deals are not going to suit you then you know that you can walk away as there will always be other opportunities if you are opening up your mind and getting out there to find them.

Let us know how you go

Best Wishes

Corsa

 

[kph]

Hi markpatric.....

Yes...on both counts.

There are niches' in every market...including property, in the current market.

We do just what you suggested....develop...build.
Its profitable from day one....ie...at the 'buying' stage.

The downside or risk, is the delay in getting the product to market....beyond that..its looking good.

I don't know about 'done well'...but its profitable..thats good enough for me.

KP

 

[markpatric]

Thanks for the replies.
I have brothers who have developed land with mixed success, one had two properties subdivided both and has done quite well, but due to delays and extra costs he`s made well under half what we all thought he would.
This really is not good as this deal looked fantastic, what about the ones which are only making a small profit from the get go I say forget`em.
But then again some hate thier job so much getting by is not a bad option, like someone said though, the risk is there to lose out, a lot of work and stress to not make a profit.
I`ve gone back to my dayjob....for now.

Glebe.....lucky....... as compared to everyone else

 

[Beach Bum]

Beach side burbs have been going down for a while now, but i think it's still a hard market to read and am going to wait for mid 2005. There is some new stock coming to market, but I don't think I'll miss out on much growth.

 

[Ausprop]

"Beach side burbs have been going down for a while now"

just curious to know where this is occurring?

 

[markpatric]

I`m not sure about beachside suburbs but there are pockets in Brisbane, which reached highs above $300,000 and now homes are not selling for 6 months at $260,000, this is not rare make no mistake prices are actually going down in areas while many others are still going up and selling very quickly(acreage 10-15 k to CBD).
Six to 12 months ago this was obvious as acreage was cheap all things considered, prices were not adding up at all, and homes on small blocks way out of town were actually catching right up with inner city stuff etc there was always going to be a correction.
The worry is for people who has overextended themselves at the red hot point, a lot of those houses would not sell for quite some time if back on the market and even at a 20 %discount. The herd mentality in R/E never ceases to astound me, absolutely fascinating.
I agree though with the opinion that R/E will rebound slowly over the next couple years so I will continue to selectively buy in Queensland due to the migration rate.

 

[House_Keeper]

Hi everyone,
My first post, so be gentle with me...... I have noticed that there are some bargains to be had on units currently in sydney. Yeah I know that you have to be very very careful where you invest, but I am currently tracking 2 deals that, if the vendor sees things my way will mean cashflow neutral and a heap of equity plus future growth. Beachside suburbs (3 blocks from the beach, small units but inviting..)Now I would prefer a house, but if a deal lands in your lap... then i aint going to say no..

Be interested to hear what everyone has to say... Ill be totally honest, Im a newbie that has "paralysis by analysis", but after 2 years of research, trawling the forums and speaking to my like minded peers, and of course seeing so many areas boom and saying "if only I....." Im motivated to do something about it.

Bellstar,

You seem to have done your research. Purchasing below market value and with a neutral cash flow lowers your risk considerably.

You might want to consider how this purchase is affecting your borrowing capacity though. Even though it may be cash flow neutral, banks do not see it that way. Their conservative assessment means that holding this property will reduce your borrowing capacity.

Cheers,

 

[alemap]

I've just bought a house (with a flat under) in the inner city in West Hobart. We bought the property for $290,000 and the total rental income is currently $400 per week. The house is sunny, has views is 10 minutes walk to the CBD and should have good capital gain potential in the mid to long term.