From recollection, I recall accessing one of Rocket’seminars in Brisbane where one of his guest speakers, a Gracemere developer, stated that properties would increase in value in ten years (back in 2009) to a million dollars for a four bedroom home. I recall stating to the lady sitting next to me that that is a huge assertion and not likely nor possible (simply a greedy assertion) and would be happy with a 6% per annum increase over time…I did not think it would turn out the opposite with a ongoing decline since 2009

• This reply was modified 6 years, 11 months ago by  Clyde.

Hi Luke

It was our first investments and as a university graduate I assumed that when an agency advertises professional service and features in key Australian property magazines that there was credibility of advise. We have subsequently undertaken our own research to purchase IPs.

Many options have been undertaken to manage the situation but with the increased interest rates, negative equity and consistently dropping rents of these specific properties the situation is dismal.

Clyde

Hi

Our outcome 8-9 years after purchasing – we were advised to set and forget and wait but we cannot ‘set and forget’ with maintenance costs increasing with the properties being older, holding costs reducing with limited depreciation left and significant negative equity.

We took the expert advise of Rocket Property Group and purchased a house and land package in Gracemere for $375,000 with local sales sitting in the $290,000 – $320,000 presently and continuing to slide attributed to over supply matters. Current rent $320/week and two air conditioners packed in requiring replacement. Adani mine on hold has not helped either to stimulate the economy.

We also purchased a property in Far North Qld from Rocket 9 years ago now – purchase price $320,000 for the three bedroom apartment at Clifton Waters – currently the sales are sitting around the $250k mark for three bedders – high holding costs with high insurance, Body Corp fees and maintenance matters increasing and furniture requiring replacement a couple of years ago.

We have asked if Rocket had any buyers to enable us to sell however were advised they do not deal with second hand properties and to continue to hold on.

• This reply was modified 7 years, 1 month ago by  Clyde.
• This reply was modified 7 years, 1 month ago by  Clyde.