may be lower than the bank val evand
So...has anyone picked up a bargain yet???
- Thread starter HandyAndy888
- Start date
Hi Lizzie
Probably about another 0.4-0.5% realistically. The five units were fully refurbished 2 years ago so it only leaves the three bedroom townhouse as a reno possibility. Probably more rental in airconditioning the five units.
Cheers
Shane
Been hard getting good deals even in this market. I picked up more good deals when the market was hot !
Anyway...
Picked up a highset in logan in early Oct 2008. $145,000. Needs 35k reno. Rent will be $310 per week after reno but i am going to flick straight away in the new year for $280k plus.
Anyway...
Picked up a highset in logan in early Oct 2008. $145,000. Needs 35k reno. Rent will be $310 per week after reno but i am going to flick straight away in the new year for $280k plus.
I have just bought a house in Merrylands (to live in) right next to Granville Park. I don't think i have a great reduction on the house.. I think the price was fair with the current market.
18 months ago it was almost imposible to get a house near Granville park
but under this condition it has create opportunities for people like me to join the best area in the Suburb.
18 months ago it was almost imposible to get a house near Granville park
but under this condition it has create opportunities for people like me to join the best area in the Suburb.
I am impressed, i almost smashed my keyboard in jealousy when reading...
Good work, that is true value investing, what i aspire...
$310/week in Logan, you're kidding right???
Possibly BC but i never trusted valuers accuracy too much.
My point was more that its value could be less in 6 months/1 year/2 years.
My point was more that its value could be less in 6 months/1 year/2 years.
So could anything. Your salary, home value, share portfolio. So what is your point?
Yes, you're right they could all fall in value but my point is (thanks for asking) is i don't claim instant equity in anything and so i was asking "where is the instant equity"?
A valid question i think. Maybe you can help with the answer.
A valid question i think. Maybe you can help with the answer.
Since equity is simply value that may be realised either by selling an asset or borrowing against it...then instant equity would be the amount that a lender may lend against the asset over which you paid for it or the amount that a buyer pays over what you paid for it less costs..
It is similar to buying a company for less than the net tangible asset value. There is instant equity in that scenario also.
Hopefully this helps answer your question.
Cheers
Shane
It is similar to buying a company for less than the net tangible asset value. There is instant equity in that scenario also.
Hopefully this helps answer your question.
Cheers
Shane
Yes i know what the word 'equity' means.
From the example of AnneDe's post.
If something is valued at $500k last year and i bought for $400k yesterday, i cant claim to have $100k instant equity. $400k is just today's market price.
Next year it might be worth $300k.
From the example of AnneDe's post.
If something is valued at $500k last year and i bought for $400k yesterday, i cant claim to have $100k instant equity. $400k is just today's market price.
Next year it might be worth $300k.
And following that to its logical conclusion, you would never invest or buy anything as it may be cheaper sometime in the future. This is the deflation phenomenon that the central banks and governments of the world are frightened of as the economy would grind to a halt. I might suggest googling the Paradox of Thrift.
Cheers
Shane
Cheers
Shane
Hi evand
Did plenty of research into the area and was satisfied with below bank valuation (giving instant equity) and below medium value purchase price of $335,000, as long term prices are likely to trend upwards again.
Had previously bought a property in Rochedale South 20 years ago for $68,000. Unfortunately, sold it in 2001 but if it was on the market today it would be listed at approx $360,000+.
I aim to hold this new property long term, so am not concerned by possible falls in valuation in the current economic conditions, as I am confident they will rise again.
Cheers
AnneDe
damn - looks like the pay office was right. what confused me was that they included company super contributions on the salary review form for the first time, which means the gross pay doesn't equal the total salary review because super isn't part of your gross pay ... it's just super.
looks like i gotta raise my deposit the hard way.
Hi Anne,
My take on it is if you cant sell it on the same day for the amount you consider 'instant equity' then it isn't.
Its just the market price at that time.
By the way, valuers are known to be wildly inaccurate. But its all we have beside our own research.
My take on it is if you cant sell it on the same day for the amount you consider 'instant equity' then it isn't.
Its just the market price at that time.
By the way, valuers are known to be wildly inaccurate. But its all we have beside our own research.
Evand... i think we are splitting hairs over this equity thing, really.
You just consider it to be only based on a SALE, whereas others (including myself) consider it to be based on what you can get it valued for.
What does it really matter? If you are buying a holding for the long term, and you get finance based on a valuation that is higher than your purchase price - then that is a good thing for your investing strategy, yes?
Well it is for me!
Anyway... back OT.
Looking at a place out in Colyton (western sydney). 3Br, 600sqm, $227000.
rent would easily be $270/wk, and it needs no work.
Looking at sales in the area, similar properties are selling for $260-280K regularly (actual sales).
This one is cheap thanks to a motivated seller who has already put a deposit on a new house.
You just consider it to be only based on a SALE, whereas others (including myself) consider it to be based on what you can get it valued for.
What does it really matter? If you are buying a holding for the long term, and you get finance based on a valuation that is higher than your purchase price - then that is a good thing for your investing strategy, yes?
Well it is for me!
Anyway... back OT.
Looking at a place out in Colyton (western sydney). 3Br, 600sqm, $227000.
rent would easily be $270/wk, and it needs no work.
Looking at sales in the area, similar properties are selling for $260-280K regularly (actual sales).
This one is cheap thanks to a motivated seller who has already put a deposit on a new house.
Voted Yes.
Started a thread some time ago on cheapest IP's purchsed. As stated then, ours in Black Hill in Ballarat, was some 40 % below comparables in the area and had council valuation (as it was a subdivision at the rear of established dwelling) come in last month at nearly 50 % higher than what we paid.
Due to the small numbers it was ideal for our super fund, acknowledging that there will be no income for a couple of years, it’s like a mini land bank, and as stated well below comparables in the area. It also clears the heritage zoning that afflicts much of the town.
I still approached it as if I were develop it today outside of the fund, and even with borrowings for the build (assuming the cash land purchase) with the rent and depreciation it would be positive cash flow. We will build in the next two to three years.
Deals are out there....we've just got to look and sometimes get creative in the final vision and picture. This one’s our smallest, but as a strategy will add further rents to the super fund that will all be tax free in 12 years.
Started a thread some time ago on cheapest IP's purchsed. As stated then, ours in Black Hill in Ballarat, was some 40 % below comparables in the area and had council valuation (as it was a subdivision at the rear of established dwelling) come in last month at nearly 50 % higher than what we paid.
Due to the small numbers it was ideal for our super fund, acknowledging that there will be no income for a couple of years, it’s like a mini land bank, and as stated well below comparables in the area. It also clears the heritage zoning that afflicts much of the town.
I still approached it as if I were develop it today outside of the fund, and even with borrowings for the build (assuming the cash land purchase) with the rent and depreciation it would be positive cash flow. We will build in the next two to three years.
Deals are out there....we've just got to look and sometimes get creative in the final vision and picture. This one’s our smallest, but as a strategy will add further rents to the super fund that will all be tax free in 12 years.
Why I do believe I picked up a bargain, a house that had sat empty for a considerable time, some graffiti and a little vandalism...bit of a hole in the wall, pretty untidy looking but a good solid home basically.
It went up for auction, no bidders, just opportunist me standing, waiting....made a lowball offer, accepted, patched up hole in the wall, ($250)....cleaned it up, (my elbow grease).....a little paint job, (few hundred bucks, me on the end of a paintbrush), airconditioning, (inverter split system Mitsubishi $2000), some curtains and blinds, ($800).....few light fittings and few new power switches, new toilet seat ...$300)....little basic landscaping...me and shovel, lawnmower, barkchips etc ($120).
Place looks pretty swish, great tenant and rented for (150 p/w) I think a return of around 14% gross?, (forgive the math it is not a particular strength)..after paying $55,000. Basically repairing the hole in the wall lifted it's value to $75,000 (from the 55,000).
Regional city of Victoria- Horsham. The Wimmera. About a 88% median house growth change over 10 year period, 97-07 Vic Valuer-General stats), and it just happens to be the property next door to another property we own.
All good fun.
It went up for auction, no bidders, just opportunist me standing, waiting....made a lowball offer, accepted, patched up hole in the wall, ($250)....cleaned it up, (my elbow grease).....a little paint job, (few hundred bucks, me on the end of a paintbrush), airconditioning, (inverter split system Mitsubishi $2000), some curtains and blinds, ($800).....few light fittings and few new power switches, new toilet seat ...$300)....little basic landscaping...me and shovel, lawnmower, barkchips etc ($120).
Place looks pretty swish, great tenant and rented for (150 p/w) I think a return of around 14% gross?, (forgive the math it is not a particular strength)..after paying $55,000. Basically repairing the hole in the wall lifted it's value to $75,000 (from the 55,000).
Regional city of Victoria- Horsham. The Wimmera. About a 88% median house growth change over 10 year period, 97-07 Vic Valuer-General stats), and it just happens to be the property next door to another property we own.
All good fun.
Why I do believe I picked up a bargain, a house that had sat empty for a considerable time, some graffiti and a little vandalism...bit of a hole in the wall, pretty untidy looking but a good solid home basically.
It went up for auction, no bidders, just opportunist me standing, waiting....made a lowball offer, accepted, patched up hole in the wall, ($250)....cleaned it up, (my elbow grease).....a little paint job, (few hundred bucks, me on the end of a paintbrush), airconditioning, (inverter split system Mitsubishi $2000), some curtains and blinds, ($800).....few light fittings and few new power switches, new toilet seat ...$300)....little basic landscaping...me and shovel, lawnmower, barkchips etc ($120).
Place looks pretty swish, great tenant and rented for (150 p/w) I think a return of around 14% gross?, (forgive the math it is not a particular strength)..after paying $55,000. Basically repairing the hole in the wall lifted it's value to $75,000 (from the 55,000).
Regional city of Victoria- Horsham. The Wimmera. About a 88% median house growth change over 10 year period, 97-07 Vic Valuer-General stats), and it just happens to be the property next door to another property we own.
All good fun.
Brilliant stuff.
How are the rental vacancies and demand there in sunny Horsham at the moment?
