Hello all, has anyone purchased any HOT property in the last say 3 months, where, why I am curious…..
I did purchases and settled one last month and one this months. They are +CF in SA.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]thanks Chan for your contribution.
Always can reply on you not being too specific…. (no offence intended).
Never mind ….. better luck next time.PS
Did you read the posts where you have been “missed”…..As at this stage I am not intent to buy more property, but I want to wait and see what the area is doing in the near future. If I am not successful in shares trading then I will go back to property and maybe buy more +CF there. So I better keep it quiet at this stage…lol
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Originally posted by Chan$:If I am not successful in shares trading
All the best, but watch those %#@!ing market makers Chan!!!! They have horns and a pointy tail![satan]
Marisa,
I am hoping to exchange on what I think is a hot property this week
) Negatively geared at 6% yield and maybe not in a hotspot you’re looking for- sydney city I’m hopelessly excited though [hair2]kay henry
Secured an option within the past 3-4 months [no money down] on land in Queenstown, New Zealand subject to the vendor receiving re-zoning approval.
The offer was slightly higher than the asking price.
Approval was granted.
The land was flipped for more than twice the agreed price on the date the deposit was due – closing + 30 days.
Total time committed ~8-10 hours.
There are a number of locations in New Zealand where the same strategy can be applied with a guaranteed [as close as you will find] return on investment.
Moral of the story, you do not require an abundance of cash or equity to make money in real estate.
The key is due diligence [doing your homework] and presenting an offer which is risk adverse and a “win-win” for both parties – this type of transaction does not require disclosing your intent in terms of resale or otherwise.
— Michael
Originally posted by Michael R:Secured an option within the past 3-4 months [no money down] on land in Queenstown, New Zealand subject to the vendor receiving re-zoning approval.
The offer was slightly higher than the asking price.
Approval was granted.
The land was flipped for more than twice the agreed price on the date the deposit was due – closing + 30 days.
Total time committed ~8-10 hours.
There are a number of locations in New Zealand where the same strategy can be applied with a guaranteed [as close as you will find] return on investment.
Moral of the story, you do not require an abundance of cash or equity to make money in real estate.
The key is due diligence [doing your homework] and presenting an offer which is risk adverse and a “win-win” for both parties – this type of transaction does not require disclosing your intent in terms of resale or otherwise.
— Michael
There is another moral to this story…
I knew a chap in QLD who used to do this ( Sunnybank Hills/Browns Plains/Calamvale area). But when I knew him, he was doing this in a bear market…made millions!
The moral; you “can” make pots of money even in a crappy market. (giving myself an uppercut here…I have been armed with this knowledge for years…hmmmm)
“you “can” make pots of money even in a crappy market.”
Absolutely agree – in fact I have touched on this several times in earlier posts.
However, in a bear market the strategy is different because it can be difficult to flip the property – as in the example used – if this is the intention when taking the land option.
This example is very much reliant on foreseeable capital growth [appreciating value].
In a bear market the best strategy is to “accumulate” longer term options [preferably] or the land/property with conditions in place – to draw out the closing date.
Vendors are more likely to negotiate favourable terms when the market is down.
You are then in a position to off-load the options/property when the market turns – or retain the property and benefit from the capital growth.
Whether the market is up or down there should always be contingencies [i.e. conditions] in place so you as the buyer can walk away if the “risk” exceeds your comfort zone.
Furthermore, the deal should be positioned where there is no cash investment [minimal at most] – which can be achieved by simply conducting a fair negotiation, i.e. offer a slight increase over the asking price – if confident it will not have a negative impact on the transaction.
— Michael
Hi Marisa,
well… i dont know, how hot this property is… but the figures definetly stack up….
signed a contract for a townhouse, last week, and now, just waiting now for settlement…
but 2 parts to the story… Chan and me are now neighbours… lol (which is very convinent) and the other happy news is, in the same complex, there was a town house for sale for $45k more than the asking price, on the one, i manage to negotiate down on…
…but, the best news of all, is that townhouses has just sold, and the townhouses are exactly identical, but the asking prices… were on 2 different market ends…
Cheers,
sisMichael,
sorry if this is obvious to anyone out there…. But how do you flip a property? (find a willing buyer?) I’ve read the book + others, and still can’t figure how someone would pay more than you did originaly. And you got double? Must be a trick to it! Feel like sharing?
“But how do you flip a property?”
The option to purchase [a contract] was simply assigned [sold] to another party.
“still can’t figure how someone would pay more than you did originaly.”
Supply and demand. Demand well exceeds supply in this market which was the basis of the decision to acquire the option – when there are more buyers [including a high ratio of overseas investors] than available property, real estate values will increase across the board.
The primary reason the value doubled is the re-zoning. The land can now generate a substantially higher return on investment than under the prior zoning.
Why did we not retain this land? Because it did not offer the attributes we seek for development purposes – it was used as a mechanism to leverage other investments in the same location, therefore reducing our capital outlay to almost zero.
— Michael
Hi Marisa,
We purchased an IP in Mornington (Victoria) last month; still awaiting settlement. It may not be everyone’s idea of a HOT spot, thus property, but I believe Frankston (neigbouring suburb) is in the throw’s of a huge popularity boom with Melbournians opting for a “sea change”. Furthermore, I read recently that Mornington along with other surrounding districts would benefit from the renewed interest in these increasingly favourable bayside areas.
Oh well, here’s hoping anyway!!!!
Jo
) Negatively geared at 6% yield and maybe not in a hotspot you’re looking for- sydney city 
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