I would treed very warily at the moment. Now is not really the time to be risking your equity.

Do you think maybe that guy was a dummy bidder. Did you look in the Sunday papers to see what it was passed in at? Did you see the guy walk in and make a later offer?

<<<Now, we really want this property…. >>>

How much do you really want this property. You are near market price – offer a few thousand more if you really want the property.

Just ask the agent when you do your offer. I have made verbal offers without even needing to write a cheque till the offer was accepted.

Many agents work in different ways.

Its like any toursit area in Victoria. Not really sure they are investments but more lifestlye properties.

Thats what history seems to suggest.

I recall many years of no growth or very little and even falls after a period of boom growth.

Now is a time to be conservative.

Pelican

I agree with your comments.

Bruham

I am not sure what your getting at. But Spann does acknowledge that you do need to generate other income to keep going and there will be times when you need to wait for market growth so your rents etc go up before you can make your next purchase.

Like Steve I suppose Spann does have other avenues of generating an income.

I have referred to the Peter Spann Book alot in my posts.

I agree with his strategy v the steve mcknight approach.

I believe (and its only me) Steves success was a product of the property cycle that he invested. He bought regional properties that had not increased in value for years. As the yield was good he was able to purchase many properties. Then capital growth rippled from the cities to the regional areas and he was able to take advantage of that. Its the capital growth that has made him successful.

Peter Spann is growth oriented. Buy quality undervalued surburban properties that require a renovation. Renovate them for some sweat equity. Rents will increase and your servicibility will improve. Over time they increase in value and rents thereby they become neutral. Jan Somers also advocates this.

If your investing in property would you rather regional or properties in a major city.

I would rather have $50k growth on $1m of surburban property than $25k positive cash flow on regional properties.

If you give it a long term perspective the Peter Spann strategy is better.