I've been going to a great number of auctions in the Sydney area trying to find a PPOR. Unfortunately i haven't had much luck finding a bargain. My weekends don't exist and quite frankly, i cant wait to get back to work.
I guess my question is… should i just look for something with value but at around the market price or keep looking for a bargain.
Thanks for your advice in advance
I'm looking to spend about 650k and areas are all over Sydney. I would like the inner west if possibleTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Don't just buy something because you are frustrated. Maybe take a break for a few weekends and then get back into it. I know the feeling and have felt it many times before
Is looking for a bargain the way to go or market value
Hello and welcome aboard.
What do you mean by a bargain? Perhaps that's the reason why you haven't purchase anything yet – maybe you're expectations are set too high in terms of purchasing something for a lot less than what it's worth.
I agree with Terry – no point in rushing in just for the sake of buying something. There's a lot of money at stake – and it's a decision you'll live with for a long time.
What's the strategy? E.g Buy and reno? Subdivide, develop? Have you considered the possibility of buying 2 properties with $650k or even buying something at the $300k mark and then using the remainder of the money to develop? Make sure you crunch the numbers and have a strategy.
The inner west is probably second to western sydney in terms of traffic and activity right now. I have had 3 people go to auctions and not even be able to put in their bid.
The inner west is heating up heaps – I had a few clients in the same boat this weekend. All went to auction to see the properties sell at much higher than expected prices.
So this is my strategy, well my way of thinking. I'm a carpenter so I would like to purchase a house (ppor) renovate it and use the equity to purchase another place as a IP. The bank will give me a loan of 550k. I have a deposit of 150k. What do you think about the strategy.
So what's the best way to find an indication of what a property is worth?rob-waParticipant@rob-waJoin Date: 2003Post Count: 36
Have you thought about using a "Buyers Agent"
I've used them for development blocks and easily made their commission plus profit back..
Strategy is fine but I would run the numbers and see whether you want to use the entire $150,000 or some of it (i.e. do you go with an 80% vs a 90% LVR).
Adding a Granny Flat would assist more in cashflow than it would for building equity but I would consider it as an option (or at least an option for somethign to do at a later stage).
An alternative strategy is to purchase 2 properties for around the $600k mark live in renovate both. You will be obviously sacrificing a level of lifestyle but I think its another strategy worth considering.
I agree, maybe my expectations are too high. What would be a good indication if a bargain?
Thanks for you reply
Could you explain to me the renovate strategy? Is this to buy, renovate and sell?
Well as an amateur i haven't even considered this. What would the cost be and how does it work?
From experience, are they worth looking into?
Yes but the problem with this strategy is that the market is completely flooded. I am personally looking at fire damaged properties (which are harder to find) as the market is generally smaller. You being a carpenter will be able to tell which properties can be salvaged and which properties should be left alone (i.e. roof beams caving in,etc).
ShahinCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
Yes. But as with all things there are good and not so good. A good one can sometimes source deals before they even hit the market. Agents can contact them if they know a seller wants a quick sale or is willing to drop their price. At the end of the day agents want a sale. If they know an agent has lots of clients they'll often ring them.
I've bought a few bargains through a buyers agent.
You need to find one that specialises in the area you want. Name a few suburbs you are interested in. People may have recommendations.
A renovation strategy mnay also be buy/reno/hold. That's what we've been doing the last few years. Increased equity gives you the deposit for your next purchase plus your yield goes up making it CF neutral at worst (assuming you do a good job and don't blow your budget).
Yes, I think a good BA is definitely worth it depending on the individuals circumstances.
I agree with Catalyst though – like any industry there's good and bad ones.
You could start a new thread asking for recommendations for BA's in the area – you might get a few options to choose from.