Forums / Property Investing / Help Needed! / Any suggestions for independent advice

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  • Profile photo of habbyhabby
    Member
    @habby
    Join Date: 2008
    Post Count: 2

    Hi everyone I’m looking to buy a property on the Morning ton Peninsula in Victoria in the $300 to 350K range.  I would rent it out for at least 4 or 5 years and then maybe use it as a family holiday house but it must pass the investment test first. Have been looking for a couple of months now.  The market seems very quiet, auctions passing in, for a property we put a bid in we were the first offer since the house went on the market 8 weeks ago, 3 houses we had looked at have dropped the asking price by $20 to 30K.   We have put in 2 bids as 10 to 15% under the asking price but with no success, they are holding on for their price (that was probably reasonable for 6 months ago). Any suggestions on how we can get some INDEPENDENT advice on what’s happening with the local market.  Has anyone used a buyer’s brokers? Thanks for any suggestions

    Profile photo of CHISCHIS
    Participant
    @chis
    Join Date: 2008
    Post Count: 80

    Continue to offer
    Reality will bite them soon

    Profile photo of Jon ChownJon Chown
    Member
    @jon-chown
    Join Date: 2007
    Post Count: 254

    Hi Habby,   Questions like yours are difficult to answer at the best of times, however I do have a couple of thoughts but first I must ask the obvious.   How does a property pass your investment test?

    I know nothing about property in Mornington Peninsular, however i'm assuming that property in the $300K to $350K range would be the most sought after.   I would say that almost 60% of Buyers would fit this criteria (First time buyers and Investors) so competition would be tough.

    You say,
    3 houses we had looked at have dropped the asking price by $20 to 30K.   We have put in 2 bids as 10 to 15% under the asking price but with no success, they are holding on for their price

    Does this mean that a house that was listed for say $330,000 has been dropped to $300,000 and you have offered a price of $270,000 in the hope of getting a nick.   If so I suggest that you may be waiting a while for your first property.   List price on a property is not the only consideration when purchasing a property.  Past sales data is far more important, then you need to be able to fairly compare these sold properties with the ones that are currently on the market in order to ascertain if the subject property is better (dearer) or worse (cheaper) than the similar sold property.   This is the simple process that most purchasers go through when buying property, it's called Education.   Many buyers miss out on one or two before they learn the real values.   I suggest that in the example above $300K may well be the real value.

    Good luck with your first purchase, don't get frustrated and remember – through education we gain knowledge – through knowledge we gain confidence – and with confidence we are able to act.

    Jon

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 971

    If you want to find bargain… you need to waitttttttttttttttttttttttttttt and most of time you will miss out

    Profile photo of habbyhabby
    Member
    @habby
    Join Date: 2008
    Post Count: 2

    Thanks for your responses – my take so far – local knowledge (experience/education) plus patience/persistence. 

    Jon 

    Median price is $385K so I agree we are probably in the most price resilient part of the market.  
     

    No, we have offered on properties that hadn’t dropped their asking price, offered around $310K on properties asking  around $360K – No attempts by the agents to negotiate just saying the vendor was sticking to their price.  My assessment is these 2 properties probably would have sold for $350 – 360K six months ago (I have been able to get local sales data for the last 6 months from a friend who is as valuer)
     

    Any comments on buyer brokers?
     Thanks

    Profile photo of BaysideBayside
    Participant
    @mornington
    Join Date: 2018
    Post Count: 64

    The Mornington Peninsula is a great market to be investing in as of late. Just look at the growth rates in each suburb.

    Check out these suburbs:

    https://www.realestate.com.au/news/near-perfect-gains-for-mornington-peninsula-sellers/

    https://www.realestate.com.au/news/outsiders-and-locals-to-keep-mornington-peninsula-prices-steady-in-spring/

    Bayside

    Coastal markets 2019

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