a friend of mine has just sold his house to a mainland investor for 145K. Three years ago he paid 88K This investor has bought over the net,did not even inspect the house and has probably paid 20 to 25 thousand to much. The house is pre 1985 so lacks obvious deductions.
I know of other examples similar. This is madness as prices like these are just not sustainable.PS. Tasmanians are just laughing to the bank
I have a friend who is a real estate agent in country NSW and has been telling me exactly the same thing, people are ringing up asking the expected rental, size of the block and confirming the asking price, then making an offer.
She can not believe they are not even interested in inspecting the property, it is all on the figures. I guess a few people will be stung and pay too much or buy in a town where there isnt a strong rental market.
But good luck to them, I really like seeing what I am buying.
WHJ
Hi,
I was reading your posts with interest. On calling some RE agent friends, they were telling me similar things. Some of their web sites were so far out of date, because they haven’t had time to update. One RE said due to the feeding frenzy he had no houses for sale! [
] Another said the vendor upped his price by 15K after listing it for 60K, it sold within hours, by an interstate investor!
Buyer beware! I’ve learnt the hard way.Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Hi!
I’m back in the office for a day and then off to Mackay tomorrow for some R & R.
This is a very interesting post for a few reasons.
I actually believe making offers without seeing the property is not necessarily a bad thing, provided that you know what you are doing.
That is to say that there must be some due diligence over the property, which means an inspection by someone who knows what to look out for.
This may (and usually should) be a builder – however, once you’ve looked through a thousand or so properties then you get some idea of the danger signs yourself.
As for crazy prices… for +ve cashflow investors the yield is the most critical thing to review.
As for time… the less you do at the beginning the more you’ll have to do later when things go wrong.
If you are going to gamble… buy a lottery ticket. It’s a lot less expensive when you lose, and a lot more exciting when you win.
Happy investing!
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi, I’ll have to say I would be very hesistant to buy sight unseen, similarly buying interstate.
I just don’t know rental demand and markets.
Alot of little things can go wrong, at least we are local and have a measure of control over our properties.
we can do our own repairs and keep an eye on our assetts.
maybe its different with wraps.
Maybe I am old fashioned.
By the way, rental market very soft in the outer east! My manager has just told me, not many calls despite advertising etc.
I have one properety vacant at present.
I have had more calls by agents selling potential dual occ’s, but I think I will pause for the next little while and concentrate on my current properties and developement etc.Typically, so I’m led to believe, the market will basically crash in Tassie as there is relatively little local interest/pressure to sustain the inflated pricings. Only 100,000 people in Hobart and 440k in Tassie – oh yeah, another telling stat was that 75% of all stock is Owner/Occ! ;o)
Warmly,
Jason Seperic
Triumph Publishing
http://www.triumph-publishing.comI was in Tassie only recently, lovely place but not much changed since my last visit about 15 years ago, growth? I don’t know.
Tasm. doesn’t have a lot of industry and seems to survive on tourism.
Also, when i saw some stats. on growth rate, it is very low, as opposed to say QLD.
So after consideration of all of the above, I decided to stay clear.
Its also really, really cold, I had to buy a coat!Tasmania was discussed as an investment option at the recent Kiyosaki seminar. The general consensus was that why would you even bother buying there in the first place, unless you are a local. O prospects for population growth. Declining industry. Basically a waste of time.
PS These are not my opinions, but were by several RE gurus.
Hi All,
Depends what you are looking for. I’m with Steve on this one. It’s about the numbers. You don’t go investing in Tasmania and look for capital growth – if it happens great – if not – so what – you are looking for positive cashflow properties – along with the research of vacancy rates and other due diligence questions when purchasing IPs – you could help mitigate risk – and some of Tassie properties offer great returns.
Cheers,
Violeta.Yeah, a heaps interesting thread this one.
Firstly – yeah i remember on my Dolf de Roos tapes, he specifically warns people off Tasmania and Invercargill in NZ because of their declining population. However if 99 percent of people are running a mile from something and the house prices sink so cheap that someone says ….hey we can trade in our one bedroom unit for a palace…let’s do it….and then suddenly – a trend starts, that becomes a trickle and a current….then you get a situation like what’s happened in the last three months alone in Tasmania – 1000 people have moved there! Yep – and it’s the first turnaround after 12 years of decline if i remember the article correctly. I read this in the mebourne paper, it was a feature many pages long, “TAsmania is HOT!!!” , the same weekend as the Masters’ weekend. So I bet the stampede went nuts after that.Re buying houses off the internet, just make sure you get a builder’s report, and better still one that includes checking out the plumbing and wiring. Don’t make your offer too high. Hard to get offer back down if you still want the house but you sudden’y found out you need to do this and that and the other urgently.
Basically make the builder’s report person your new best friend.!
that’s all for now
Cheers-
Mini
] Another said the vendor upped his price by 15K after listing it for 60K, it sold within hours, by an interstate investor!
]
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