Hi,
Just wondering on people’s mindsets…
Who is actively looking to buy, and what are your reasons…
Who is sitting back, watching and waiting (for what?) and what are your reasons…
Thought it might be worthwhile to get people to re-assess or share what their mindset is at the moment.
I’ve just settled this week on 4, but won’t be going again for a little while cos I’ve got a bl*ody wedding and mudbrick barn (for said wedding) to pay for… just kidding, it’ll be fun!!
Also, the 5 yr fixed IO period on another place ends in March, at which point I’ll get a line of credit put against it to boost my investing capital for new opportunities to over 120k… although I’ll just be sitting back and biding my time, hopefully picking up the odd bargain as I go…
Cheers
rHi Richmond, whilst auction clearing rates are climbing 77% in Sydney an hour north and things are much slower. The euphoria has settled around here and prices have stablised – took 6mths to sell a reno and the other is now clocking up 3mths. So I’m sitting out for a while taking a wait and see approach.[}
]Hi Richmond
I am always on the lookout for a good deal therefore will never sit it out completely.
Good deals have a habit of coming around when you least expect them! Having said that, it is obvious that as prices rise one must go further and look harder to find deals that stack up. With prices so high at present it is much harder to find IP’s that fit my profile. I am expecting that this will continue until interest rate rise by at least 2%. This is expected to happen in the next 24 months but may be as soon as 12-18 months-who really knows?Hi Richmond
I have just bought a unit off the plan, finally managed to get back into the market after 3 years.
My reasoning for this is that I managed to get a 10% discount on the place as the builder needs his pre-sales.
Otherwise I am not so sure that I would get into the market right now. I was actually going to buy a block of four units but my finances didn’t come through. I am not really disappointed though as who knows what is going to happen in the coming months.
I read yesterday that the CEO of Wizard Home Loans thinks that the market is slowing but another CEO, (I think he was from one of the big building companies), said that the market was strong, a biased opinion you might say.
There are of course suburbs that will always be strong despite what the rest of the country is doing but for the rest … who knows?
From my point of view it all comes down to ‘the right deal’. Whether the market is booming or in a slump it is whether the deal makes sense on paper, (ie. crunching the numbers).
Cheers
EnuffIsEnuff
We’re confused.
We’re ready to buy and have been looking, but apart from something that we discovered was in a flood prone area, we have not been able to find a property where the numbers totally work for us.
Using the 11 second solution as a guide for the relationship between rent and purchase price, even on the few occasions when that requirement has been met, by the time we factor in the rates and other expenses, we are not ending up cash flow positive. We get things like -$10 per week.
Has anyone else found this?
Also, with the boom all the way up the Queensland coast, where else do we look. Places have already moved and the bargains have all be picked over 3 – 6 months ago. Do we just wait.i’m still in a buying mode for the right property.
at the moment im not 100 pct focused on +ve cashflow because i think that market is a bit mad at the moment.
clsoe to +ve is good enuf for me even if that means plowing more of my own funds into it.
the one area that i think will be well hedged against any downturn and infact still holds great growth potential is the baby boomer retiree market.
if you can find a low entry level place near the water, anywhere in australia – i think its not a bad buy.
i think the baby boomer exodis from cities will be the driving force in property trends in the next 10-15 years
cheers
aussierogue
I agree that baby boomer movements will create demand near the water out of but close to the larger capitals, e.g. Sunshine Coast which has had a very hot run lately but still has further room to grow as the boomers from south get pushed out and wind their lifestyles down.Won’t baby boomer exodouses from cities create new cities?
not sure about new cities
but regional cities could get bigger
mildura case in point
huge exodus of young people yet it was the fastest grwoing country town in victoria last year (up 4,000).
why?? huge increase of baby boomers. murray river/climate/cheap/development and most importantly good italian food.
thats the last specific tip im giving and dont tell your friends
cheers
Hi there,
I’m always looking (and finding) opportunities, however I’m settling a couple of issues now and doing some research and then I’ll be hitting the gravel (so to speak).
Cheerio
Sooshie []“small steps make the journey” (SAS)
All this talk about baby boomer exoduses lead me to ask a question – if all these people are swarming out of the city into the country, where does that leave city properties?
Cheers
MTo answer your question M, city properties are taken up by new migrants.
g’day Elysium-m
city properties. depending who you talk too. but one theory is that middle class suburbs will infact go through a downturn.
immigrants (as a whole) unfort dont have the cash to buy in the leafy suburbs of melbourne.
might be a good time to be cahsed up in about 5-7 years time.
cheers
Good point trueblue.
But will there be enough migrants to fill the gap?
Given all these cash-rich baby boomers moving to the country to eat a lot of peaches, maybe I should start investing in developing a swanky retirement commune in the country…
Hey I’ve been censored! And I wasn’t even using a rude word, although I can see how you could extract one from it. In the interests of protecting my good name, I was only trying to say: “s-w-a-n-k-y”, meaning “flashy”, or “high-class”.
Thanks for your reply aussierogue. I think you’re right for the majority of migrants. However, if most +ve cashflow properties are in the lower price brackets, that may well be good news for the low-end rental market, and hence +ve cashflow investing.
Cheers
MDoes anyone have real stats on the number of people migrating into and out of Aus. as well as some population flow figures between cities and towns? It would be interesting to know which areas are growing in terms of population, at what rate and from which sources (i.e. OS immigrants, interstate). Also cross matching this with some employment/unemployment data may point us to areas we have not seen before.
michael and kaye
congratulations – looks like your timing was perfect
cheers
Good on you Michael and Kaye,
I left the city a year ago (still work there) for 60 acres 1 hr north of Melbourne… plans to grow grapes, get some cattle etc… best move we ever made, and we’re still within striking distance if I want to go and watch my abysmal Tigers play AFL.
Cheers
rHi Richmond,
i want to buy immediatly. It will be my first and i believe the right strategy for the right IP will make money.
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