I am in a few property clubs and do continued education to keep up front with what is happing in the industry in Australia. I am amazed watching new people come and spend $1,000's, & years of time procrastinating. If only they had entered the market back then. Interestingly they can tell you a bunch of stories about the big ones that got away.
In the hope of motivating new investors I would like to start a thread where both new and old investors commiserate. I will start the ball rolling with a property at Banoria Point with ocean views northern NSW a few years ago.
Deceased estate & asking price $360k. We had our offer of $335k accepted, placed a 10% deposit in the real estate’s trust, presented all documents to a solicitor in Coolangatta who then help up the document for 2 weeks before sending it to the vendor. Amazingly that same day our document was presented he presented another of his clients asking price contract to the vendor. We were told that we had to pay over asking price for us to buy the property.
LESSON 2 ME: Get a good team of professional people who I trust
20 Years ago I was in Noosa QLD and I was walking past a real estate agents office when someone came out asking if I wanted to buy land at the back of Noosa on a man made water canal. Me in my stupid mind set was worried about the mowing of the lawn as I lived interstate in Victoria. I think they wanted $15,000 for it and I reckon it would be worth over $1,000,000 now that you can't buy on man made canals anymore.
Ah, the ones that got away…
I've advised plenty of people over the years, and I've seen plenty of good deals get away, but two come to mind:
1. I recommended a property I found to a client just outside of Manly, Sydney NSW. The property was a 3br unit, on a hill with views over the surrounding areas. The asking price was circa $260k. The client accepted the offer and was ready to proceed but went to go get some separate advice. They later came back to me after speaking to their accountant saying: "Becuase it's going to be negatively geared, my accountant told me it's a bad idea becuase it will increase my capital gains when I sell it in the future". After making sure he was being serious, and explaining that long term capital gains are in fact a good thing, we parted ways. The value is now a multiple of the original asking price.
2. I found a property in Marickville, Sydney NSW for another client. It was also a unit, 3br, 9km from the City (or there abouts) near the train station etc etc – pretty much the idea inner city deal. Asking price was around $230k, off the plan. My client could see the value in the property and I was finally happy to have found him something good as he had looked at a few ideas previously with me, and a few before he became a client. He was ready to sign and decided to head over and have one more look around, so armed with the plans, he went and stood on the street to get a better feel for the property he was about to purchase. He eventually came back to me saying that he wasn't happy with where one of the walls was going to be built inside the unit and wanted it shifted – obviously on a block of apartments about to be built, a developer isn't going to move a wall for one purchaser. Suffice to say, he didn't go ahead and I passed the property onto another client who has subsequently sold it and make over $200k in profit. I would assume that he is one of those buyers that is never happy – I bumped into him several years after this happened, and he was sitll looking for that ideal property.
The lessons? You can think and think and think and think about it, but if you don't do it, you'll never make money from it.
Hi All,
I am new to the forum and after much procrastination have finally started. I have 4 houses and offered on a fifth this morning but the ones that got away……
2002 Asked my wife to come and look at a 2bdr unit in Applecross WA price $120k….. value now +$400
2007 Looked at 3 Houses one afternoon in Willetton all fairly similar all asking around $350k (I should have bought them all) Each of them would be worth over $550k today.
Whilst it sometimes hurts to think of the missed opportunities I am grateful for finding the path in my own time and looking forward to early retirement as a benefit.
Happy investing
In 1998 I finally found my ideal beach holiday house 150 metres from the beach just off the main road. 2 1/2 hour drive from Melbourne. Asking price $28k. Couldn't convince the Mrs. Today houses on the main road are advertised at $400K plus. It still breaks my heart.
Andrew
itsandrew
Go as far as you can see and you will see further.
Just heard….
recently we put in an offer on an old abc chilcare centre. At $385k it was a great buy we put in a lower offer but came to this after a week. This was what the recievers wanted. Had we put it in this offer first we could have possibly snaffled it up- as we were the first to see the only sign ,within the week though a few had seen it and we were out bidded at $425. We found out later an aquaitenace bought it and today found out hes just sealed a 30 yr total lease -$75k a year a little bit of work to do but not huge.
Still this is all good in hindsight. and we are happy with out little $150k unit we bought instead- a good reno adding a third bedroom and hope to increase to $240ish with a $25k reno.
Of course then theres all those houses we could have bought in Darwin- and more so the ones we bought but sold earlier!!
Was working in Moranbah in Qld as an apprentice, had an IP in Mackay and had an employer subsidised property which we were renting pretty cheaply. I did a fair bit of travelling throughout the day and one day was in Dysart for lunch and had a look at some properties for sale in the RE Agent’s window. Must have been about 15-20 properties for sale, all the same configuration, low set 3 br, 1 bath, carport. Average price was about $50k.
These days you can’t find much under $350k and median rent is up around $650/wk.
DOH!!!!!!!!!!!!!!
Couldn’t convince the Mrs that debt is a good thing. So there was only one thing I could do…………………..
I got a new Mrs, lol
Bought a 3br apartment in Parkville for $600k in Feb 2008. Was also looking at 700+sqm blocks of land in Glenroy for about $550k. Glenroy would now be worth $750k but our apartment probably hasnt moved much at all
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