It also depends on other factors even holding on to it long term.Did you acquire to keep them, or did you intend to do a quick flip? Property is fickle for the latter but if you’re holding on to it then you just ride the waves.
I'm sorry to hear that Ned - if you feel comfortable it would be a great exercise to work through so that others can learn from your experience.One I've held for over a decade
The notion of guaranteed capital gains is a myth
Was going to post similar. Many got burnt here(WA) buying in regional towns during construction phases and/or boom times.It also depends on other factors even holding on to it long term.
For example buying into a country tiwn which relies on a commodity such as mining for employment can be risky. If the mine is mined out or there is a down turn for the demand of the resource then it can affect property prices negatively.
Or another example is buying an apartment. As we have seen with the cladding issue it c an affect it negatively.
Even a deteched house in a capital city isn't safe if something undesirable it built close by (e.g. a land fill).
We have even seen a big down turn in Perth about 10 years ago.
However, it has been hard to 'lose' in property in the last 30 years in General. I know it has been said many times over the years, but I can't see how it can keep going the way it has. Especially if wages have been stagnant for a while now and there doesn't appear to be a rise in wages on the horizon.
I reckon that's where the money is. Over decades we expand and grow and if you buy just further out can see big returns in 10-30 years.I drive past farm land out near where I live and just see $$$$$. The property development going on in my area (outer northern suburbs) I'd love to own a farm out here. Heard of one that sold, over $100m dollars.....most would be in their families for generations I'd reckon as well
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It’s happening all the time. Put in max asking price 2 months back. Put in 10k over max last week and yeah 22k over this week. I need a house but this is madness, not sure what to do at this point.By law they need to update the quoted range if that's the case. Hold them to that, you can report them if they don't.
Early 2000s there was a significant parcel of land available for $1 mil in the north west (Plumpton, now called Fraser Rise, 5 mins from Caroline Springs). Fast forward to now and that entire stretch of land is worth tens of millions if not in excess of 100 mil.I drive past farm land out near where I live and just see $$$$$. The property development going on in my area (outer northern suburbs) I'd love to own a farm out here. Heard of one that sold, over $100m dollars.....most would be in their families for generations I'd reckon as well
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It's absurd. Everything around me is selling for subjectively good prices but also in a hurry. My house was on the market for months and sold for under the asking price which itself was under the previous sale price from a few years earlier. This was pre-COVID. A couple of houses down from me that is pretty comparable sold for $100k more, which was $30k above the asking price, within a week. And interest rates have been low the whole time. It's not like after the GFC when they went from 7/8% to 3% and below.Just put in 22k above max asking price, rejected. I’m getting real frustrated. This is ridiculous.
As FRUMPY said, there are no guarantees with any investment, property included.I'm sorry to hear that Ned - if you feel comfortable it would be a great exercise to work through so that others can learn from your experience.
Whereabouts did you buy?
From an investment perspective, what was the trigger for that particular property over others in different areas?
What changed since your purchase that changed the Investment value?
Is it still a worthwhile Investment, or are you trying to protect what are now sunk costs?
Way I see it, we own 70% of it, at worst it'll cover the last 30% of the loan life, probably 5 years.Personally would not bother with an investment property again. From my own experience and several others whom I know very well(including my brother) we've all been burnt. Just an honest to god head fu** of epic proportions if the market goes a bit sideways + other variable factors(job, tenant etc). Just my/our experience though. YMMV.
Come and rent off me and pay my mortgage for me (if and when I decide to put my current home up for rent)EDiT: in fact, with the benefit of hindsight, would not have even bought in the first place! If you had have just rented(at least in Perth) over the last 8-10 years or so, you'd be MILES ahead. The days of making money on property are numbered. The 'Great Australian Dream' will soon be a thing of the past IMO. New spheres are opening up, and old, tried and true ones are closing. If you don't have a house, or the means to get one, fear not, with a bit of head down and bum up and a bit of nous, you are going to be ok, same as it ever was.
I'm not sure about other states but I'd assume they'd have similar rules. In VIC under the underquoting rules, if you submit an offer above the range that is taken to the vendors and not accepted then they must update the advertised range.It’s happening all the time. Put in max asking price 2 months back. Put in 10k over max last week and yeah 22k over this week. I need a house but this is madness, not sure what to do at this point.
The price brackets are almost meaningless at this point. You have to well and truly exceed max price to even get a look-in.