That’s the sound of real estate in Sydney.
Made an offer on this apartment for $721,000 – http://www.domain.com.au/for-sale/-hampton-court-road-carlton-nsw-2218-2012079562
its a nice apartment but small for a 3br at 96m2 (check out the floorplan magic for the kitchen/3rd bedroom)
I think $721,000 is a reasonable price on something that will probably rent for $580pw.
I also bid that price knowing full well that 12/16-20 Hampton Court Road, CARLTON NSW 2218 sold in January 2015 for $531,000 but I figured after stamp duty/capital gains/carpet/paint/bathroom and kitchen that it was a fair increase over the original price but my offer was rejected.
http://www.domain.com.au/sold/12-16-20-hampton-court-road-carlton-nsw-2218-2011679621At the end of the day the investor probably will be getting a better offer….but whoever buys it is going to be having difficulties justifying the purchase price when mortgage rates go back up to 5-6% and only making 25k a year after expenses (but before interest).
Unless rental rates go up dramatically in 2016-17 there are going to be some awesome bargains happening in Sydney as interest rates go back up.
I find it interesting that you’re offering on properties at what you’re suggesting in the peak, and that there will be definite bargains moving forward. How do you reconcile with that?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Corey,
That’s because I’m a long term investor buying one property every year and holding for the long term. I dont care if prices go up or down for the next few years (to be honest I don’t care where prices go until I start to sell in 15 years…..and even then only plan to be selling slowly over time).Dean do you fund all deposits with earned cash or do you ever refinance? If you plan on refinancing to generate more deposits then having 2-4 yrs of no growth will definitely put the breaks on the purchasing plan. You can have your cake and eat it too if you are willing to move the location of purchases around a bit to beat the ripple or invest more counter cyclically. Eat to their own and I am all for long term but Corey is right buying if you really believe we are entering bubble phase seems counter productive to me.
Hi Corey,
That’s because I’m a long term investor buying one property every year and holding for the long term. I dont care if prices go up or down for the next few years (to be honest I don’t care where prices go until I start to sell in 15 years…..and even then only plan to be selling slowly over time).<i class=”rw-ui-like-icon”></i>0<i class=”rw-ui-dislike-icon”></i>0<i class=”rw-ui-info-nub rw-ui-info-outer-nub” style=”border-right-color: rgba(153, 153, 153, 0.498039);”></i><i class=”rw-ui-info-nub rw-ui-info-inner-nub” style=”border-right-color: rgb(255, 255, 255);”></i>Rate this
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Dean do you fund all deposits with earned cash or do you ever refinance? If you plan on refinancing to generate more deposits then having 2-4 yrs of no growth will definitely put the breaks on the purchasing plan. You can have your cake and eat it too if you are willing to move the location of purchases around a bit to beat the ripple or invest more counter cyclically. Eat to their own and I am all for long term but Corey is right buying if you really believe we are entering bubble phase seems counter productive to me.
Hi BA,
A bit of both. The reason “waiting” doesn’t make sense is because as deposit funds are available we “re-up”.
The term for buying on the “ups” and “downs in the equity markets is called “averaging” and as long as the overall trend is in your favor its helping your overall asset based grow.Cheers,
Dean
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