I have noticed that there is some panic in the market place as I am sure you agree there is as well.
Being through 19% interest rates in the 90’s and surviving I have learned to seek the opportunities that others are not looking at.
Too many people seem to focus in one particular area like buying existing stock. Although this is a good strategy in itself the frenzy over the last few years has depleated many of the good buys.
I am finding that building new has some magnificent profits now available for the pickings. Paying stamp duty on the land component only makes up for the cash flow saving on the house saving of no stamp duty.
If you are new to the property market I believe that there are more opportunities to make money now than there was 2 years previously.
Phil
Hi there,
I wish this was the case in WA.
If you purchased land 12 months ago building new would have been the way to go, and certainly many people have made handsome profits.
Unfortunately land prices have risen 20-30% in WA over the past 12 months. It is taking 12-18 months to build a home, and from what I can see too many new homes on the market.
In WA I believe there is still more value at present in purchasing established homes.
Regards, M
Hi Phil,
I agree as I am in the middle of a subdivision at the moment, and am pretty confident of a positive outcome. I’ll be onselling the original house and keeping the new “to be built house”. The new house/unit will be positive cashflow, even to the point where interest rates rise to 10%.
I bought this house 8 months ago, which I suppose was the peak of the cycle.
As I was not looking for capital gains, the timing was really irrelevant.
Cheers,
Sue“Be careful not to step on the flowers when you’re reaching for the stars”
Falling prices, reduced demand, increased interest rates… any rational investor with a hint of foresight (and some liquid reserves) would see these as positive signs. The panic you see in the market place is surely restricted to over-stretched CG speculators and long-term investors who have maxed out their LVR at the wrong time of the market cycle?
I don’t think development is for everyone, and an increase in new builds would only compound existing over-supply issues.
Cheers, F[cowboy2]phil – do you have a vested interest in talking up the market especially for new houses???
Hi Aussie,
I’m not sure what you mean by a vested interest however I do have a vested interest in making profits.
I think while there is doom and gloom out there it doesnt mean that you/one can’t make money in property.
Phil
so are you saying there are more opportunities to make money now? if so, how long will this last for (approx?)
Also, would anyone know if i am exempt from stamp duty if my income is so low?
Tech,
I guess if you don’t own any property your exempt. You could try earning more money though
In Wa stamp duty is based ont he value of the house and whetheryou’re a first home buyer, not how much you earn…
Hi tech, yes I do believe that there are more opportunities now than in the boom time and I think there are more opportunities coming for a few reasons.
1. There are many inexperienced people out there that follow the flock of the doom and gloomers.
2. Any idiot can make money in a boom but only the smart know how to make PROFITS in a gloom market.
3. I was disapointed the interest rates did not go up higher, creating more opportunities.
4. Reading comments and questions on this forum has comfirmed to me that the few truley successful people here would make up a mere 5% while the remaining 95% are doomed to fail.
5. There are less people in the market today buying and trading, this is where the opportunities are, and I am surprised so few can’t see.
6. last night I put a deal together and sold 20 blocks of land in Ipswich. I am working on a simultaneous settlement contract with a $400k onsale profit in the whitsundays.
How about a deal to purchase a car wash (fully automatic) positive geared and the opportunity to sell signage rights of $150k per year.
For those of you doom and gloomers I suggest that you develop skills of looking for deals out side the square. Property is more than buying a house in the country using the 11 sec rule.
IMHO regards Phil
Thanks resiwealth for the words of encouragement, and the practical and informative suggestions re what to look for in a stalling or correcting property market. If I am ever lucky enough to shake your wise hand, remind me not to wash it for a month.
[strum]
Originally posted by resiwealth:3. I was disapointed the interest rates did not go up higher, creating more opportunities.
Phil,
Me too! But, even at current levels there’s enough jitteriness in the market to start opening opportunities. I’m not the deft hand that you are, but I am still looking and will let you know how I get on in the next couple of months…
Good on ya,
Michael.Well, I was certainly NOT pleased interest rates went up, but we all have a different psychology and approach to these things.
resiwealth, I think you’re a bit harsh on people, in suggesting that 95% of people on here are “doomed to fail” (pullease) and that 5% are the “truely” successful. There is not one way of doing things (as you’ve pointed out- we should not be following the flock…) and it’s not a big competition. Everyone has their own aims, thanks- yours is merely one of the many ideas floating around- not all of us have “vulture” mentality.
kay henry
Hi Resiwealth,
I find your last post vaguely arrogant, but good on you for being so in touch with yourself.
I wonder if I may address a few of your points in the hope that you may spare a further few crumbs of wisdom:1. There are many inexperienced people out there that follow the flock of the doom and gloomers.
Are these ‘inexperienced people’ the ones selling out to crystalise profits, selling out at a loss or those on the sidelines watching and waiting as prices fall? Or are they perhaps the ones who can be lead into buying overpriced, depreciating assets from slick salesmen who talk the market up?“No doom and gloom here sir! How ’bout this 60 sqm ‘townhouse’ for $150k? Six months ago it sold for just $55k! You know what that means sir? Yes, this is a solid gold capital gains investment! Sign right here”
2. Any idiot can make money in a boom but only the smart know how to make PROFITS in a gloom market.
Agreed. Apart from your suggestion to build new houses, do you have any other helpful ideas?3. I was disapointed the interest rates did not go up higher, creating more opportunities.
Nice demonstration of empathy. Yes, the higher interest rates go, the more houses will become available as a result of overstretched ‘investors’ selling and repos being auctioned.4. Reading comments and questions on this forum has comfirmed to me that the few truley successful people here would make up a mere 5% while the remaining 95% are doomed to fail.
We possibly have differing definitions of ‘successful’ people. No matter how rich a person becomes (at other’s pain & expense – see 3. above), if he or she is an arrogant prat with no empathy, that’s a curious definition of success.
If you mean that 5% of ‘property investors’ will become ‘independently wealthy’ I agree… 5% would even be overstating it by an order of magnitude. I would suggest very few of them are buying to hold at the moment.5. There are less people in the market today buying and trading, this is where the opportunities are, and I am surprised so few can’t see.
Perhaps they’re too busy noticing how quickly For Sale signs are breeding, right across the country – then staying. Perhaps they’ve noticed that their ‘property investor’ friends don’t want to talk about their properties over dinner? Perhaps they can’t afford to buy because the bank’s latest valuation was lower than the value of their current loans? All symptoms of ‘less people in the market buying and trading’… perhaps they can see after all?6. last night I put a deal together and sold 20 blocks of land in Ipswich. I am working on a simultaneous settlement contract with a $400k onsale profit in the whitsundays.
Good for you. It’s a shame the other 3 Million Australian property investors hadn’t done the same thing this week – imagine how rich we’d all be then.Best wishes, F.[cowboy2]
Foundation, not defending resiwealth, he does not need me, but I must say your post of late do hurt to read. You have some unresolved issues there.
_________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceThanks chief.
Just remember who said that 95% of the people on this forum are ‘doomed to fail’ (while clearly placing myself in the 5% of ‘successful people’.
I think you’ll find I’m more than happy to value-add, but only where there is value to add to.
Cheers, F.[cowboy2]“The power of accurate observation is frequently called cynicism but those who have not got it.”
. – George Bernard Shaw“2. Any idiot can make money in a boom but only the smart know how to make PROFITS in a gloom market.
Agreed. Apart from your suggestion to build new houses, do you have any other helpful ideas?”gees F – are you suggesting you have zero ideas of how to make money in this market? as I posted on SS… I have seen 2 developments this week being sold off the plan at well under 10% of their true worth (and that was an asking price). On one of them an investor I know snapped up 3 of the units. The agent seems very proud that he has sold half of the development already!! by the time they make it to the market they will be worth another 10%. no idea how the developer will make money out of one of the projects, but it’s a free world.
even buying a block in a new estate is seeing around 10% returns by the time title issues and that’s about as easy as it gets.There are many many ways to make money in any market and to throw your hands up and say “everyone has bought too many plasmas and therefore the end can’t be far away and this statisitc and interest rates and oil prices and share market crashes and bond rates and…” is just defeatism. I do however agree that you can’t just pick up the phone and ask an agent what to buy and hope to double your money in a year.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Originally posted by AUSPROP:
gees F – are you suggesting you have zero ideas of how to make money in this market?No, I was just trying to get Resi to add some value to his thread rather than simply taking cheap shots at the ‘doomed 95%’…
My way to make money in this market is simple – both feet out. As long as the properties I’m watching in the areas I desire are falling in ‘value’ by 10% per year, that’s a better than 10% return in lateral-think.[thumbsupanim] Not to mention it’s as safe as houses then some!
And FWIW, I’m not throwing my hands up over the price of oil – my BHP, OSH & ROC more than make up for any pain I feel ‘at the pump’.[biggrin]
I’ll check out your thread on SS when I get a chance. Buggered if I know why I can’t register as a poster there. Perhaps I’m not welcome?Cheers, F.[cowboy2]
hmm imteresting accounting concept… booking profits from a falling market that you aren’t in – I like it! I might put that one to my bank manager
BHP – I sold way too low… pessimism got the better of me. but the market seems to be topped out anyway (not that I know anything about it)
SS – initially it seems a bit less user friendly but once you get use to it the postings seem more frequent. I think Steve and SS should consider a merger. most users are just flicking between the two sites anyway. Look forward to the reaction of your negative views over there… keeps em honest anyway!
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Well seems I have upset a few people (foundation) he! he! oh well who cares any way, sorry mate just a cheap shot, I do welcome your comments no matter how shallow they are.
With out writing another book the doomed 95% is as old as the hills and well published in many financial areas. Even Kiyosaki refers to it MANY times in his books, go read.
Ausprop, other suggestions to making money in real estate is out side the square stratagies. Look for commersial opportunites with signage rights that can be sold or leased seperately etc etc
My purpose to this thread is to look for opportunities that others don’t see. I thought that instead of being so gloomy it would be nice to talk about ways to MAKE money in property, isn’t that why we are here, amonst other reasons.
Yes Ausprop I am direct however if u know me I am not arrogant. Most peoples theories can be tested by the level of their bank account, the rest are opinions, IMHO
Kay Henry, yes I am a little harsh on people, but what gives me the s..ts is that this country is going back wards. Credit Card debt is now 30 billion dollars – our debt to equity level on the family home is the highest it has been in over 50 years.
Australians are amonst the worst per head of population in the world for debt, so maybe Foundation I was wrong with 95% are doomed, it could be 98% in reality. we r doing some thing wrong because to me it appears we r going back wards.
If interest rates went to 10% 2morrow this market would crash, but how did we surrive in 1990 – 1994 with 17/19% interest rates, go figure!!
regards Phil
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