Strategies in a rising market ...

[WillG]

I am under the impression that a lot of areas such as Canberra, Melbourne, Adelaide, Brisbane are currently rising (I understand I am making some generalisations here but you've gotta start somwhere).

What are your strategies in a rising market ?
* Quick buy'n sells (within 6 months) ?
* Sell poorer investments ?
* Quick buy, renno & sell ?
* Wait for market to flatten then pick up some bargains

I believe the market will continue to grow for at least the next 12 months (unless somethig drastic happens).

I personnaly don't like to buy in very hot markets but are trying to find a strategy that will bring forward financial independance. I am traditionally a 'buy 'n hold' knda guy but would like to make the most of the market.

Cheers

 

[steveadl]

With the Adelaide boom (Northern Suburbs anyway), my startegy has been to get as many properties as I can as quicky as possible, and use each one to leverage into the next.

So far has worked well, bought the first one up there in Dec '05, which leveraged me into next one in July 06, which just leveraged me into another one in June 07. And when I look at the market in the same suburb up there now, I believe in only 1 month since settlement (2 months since contract signing) I have already made 15% increase on the purchase price. So the plan will be to use this to leverage again end of this year/beginning of next year, although next IP might be near Port Adelaide next time, still investigating.

So my strategy in a boom is/was to buy quickly and use the equity staright away. Too much tax/fees in quick Buy'n'Sell, and if I waited for the market to flatten, I would have missed out on 2 or 3 IP's.

 

[grossreal]

hi WillG
the best way is to buy at the bottom or as it rises.
fixed an interest only loan for 5 years.
try to get the tennant to pay all costs if possible but not a major requirement.
hold until the markets adjusts.
revalue at the top of the market and the equity or loc the loan at this point and use the loc/equity to buy into a flat or about to rise market.a market rises and falls usually within 7 years but anywhere on the curve 5 is a good number.unless you look at waitara and thats been up and down within 2 consistantly look like a heart attack here in sydney.
you can buy very well in a falling market as long as you know the market very well and you are buying quality there will be always people that have to sell and those properties get washed into falling markets.
quantity is not an issue but quality is and time a flat or rising arket is very hard and you need to doa lot of reseach on an area before you can work out if its growing or just a hiccup in sales.
my .002

 

[Qlds007]

Utilise Put & Call Options to tie up properties with staggered exercise dates so you can spread your available funds around to a multiple number of projects.

 

[WillG]

Utilise Put & Call Options to tie up properties with staggered exercise dates so you can spread your available funds around to a multiple number of projects.

How does this translate to property ? Is this similar to asking for a longer settlement date ?

 

[Ol School Skata]

can anyone enlighten on the use of deposit bonds in a rising market?

Would this be of significant benefit?

OSS