Another day. Another young property investor

Hi T-trade,

Yes I did consider that as well. But I basically disregarded the massive increase of the valuation within short period of time for all the properties bought after 2015. Unless he can demonstrate that a reno was done and in that case the purchase price should include reno for LVR calculation, I think the stated LVRs are deceiving.

Purchase price + stamp duty = $873,600 / (270k + $170k + $105k + $169k + $125k + $165k) = 87% LVR

Show me one property that you can buy in Eagleby in June 16 (this month) and already revalued 20% more by the bank. If he can achieve that, surely we have another Nathan Birch in the making.

 

There are deals out there believe it or not. Does everyone around here pay market val? ? never pay retail!

Funny story. Bought ip, replacement value came in higher than purchase price!

 

20% at the lower end doesn't make a huge difference, not unreasonable to think you can have something for 200k

This is under contract asking 220k - I wouldn't think it would be unreasonable for someone to negotiate 165k and be worth 200k today (only 35k difference). Bit different at 500k being 20% out (100k).
24/147 Fryar Eagleby Qld 4207 - Unit for Sale #122635098 - realestate.com.au

25/135-145 Fryar Road Eagleby Qld 4207 - Unit for Sale #117597807 - realestate.com.au - asking 89k (1 bed)

But I do query the figures as well however we will never know the full story but I say well done nonetheless.

 

6 properties can be easily done if you start working/saving at 18.. that's one cheapie a year

 

I'm calling shenanigans on that many bmv deals that quick, reads like the sort of numbers Nathan Birch spruiks.

I use gross yield as a quick indicator, but QLD seems to be the home the home of $100-300k units with $3,000 - 6,000pa+ body corporate & strata fees, so its not a particularly useful metric up here for apartments or town houses (more so apartments).

 

Further evidence this is ********, just found His supposed most recent Eagleby property property by reverse image searching one of the photos:

Jun-16 Eagleby, QLD Apartment $165,000 $200,000 (Bank valuation) 66% $250

10/1-7 Boyd Street Eagleby Qld 4207 - Townhouse for Sale #122704606 - realestate.com.au

• He's buying it at asking price
• He hasn't even settled on it (under contract) and he's claiming its worth $35,000 more than what he's paying
• There is no way in hell that property is worth $200,000

 

Just found this one:
http://www.smh.com.au/content/dam/i...articleLeadwide.620x349.png/1465880847838.png


Oct-13 Elizabeth South, SA Townhouse $130,000 $170,000 (Bank valuation) 67% $230

74 Willison Road, Elizabeth South SA 5112 - View Sold History & Research Property Values - realestate.com.au

Can a learned member from SA chip in on the valuation? I'm thinking its worth mid $140, maybe $155k max. He's claiming $170,000.
RP Data has high conf $110-150k, onthehouse has high conf $146k. Its a 3/1/1 up against stuff like this:

$115k
41 Hogarth Road Elizabeth South SA 5112 - House for Sale #122852210 - realestate.com.au

$115k:
42 Jeffries Road Elizabeth South SA 5112 - House for Sale #122278846 - realestate.com.au

$155k:
3 Whitford Road Elizabeth South SA 5112 - Duplex/Semi-Detached for Sale #122010846 - realestate.com.au


Why is Domain repeatedly giving a platform to spruikers with nonsense numbers. This is not a $170k property.

 

@Plutus are you the guy from that abc show media watch that picks holes in everything! well done.
With regards to strata etc it can vary but that's part of the investors dd and i don't think necessary in these articles

 

Before I bought my last property a number of price guide sites showed my new home to have an estimated value of mid 2 mills. (Onthehouse had it as 2.2-3.4mill.) After I bought it these websites reflected my purchase price. Bugger. Lost over $1m in valuations in a drop of a hat...

 

I don't have RP data but Domain says 150-200k.
http://www.domain.com.au/property-profile/10-1-7-boyd-street-eagleby-qld-4207

Recent sales in the same complex
Unit 1 - 184k - Jan 2016
Unit 9 - 175k - Sept 2015.

200k still doesn't seem that far off.

 

I wish, he probably makes a lot more money than me. I tend to be a bit pessimistic and apply fairly high levels of what i would describe as "academic rigor" to most of what I read. Maybe I'm a bit harsh but I think puff pieces like this tend to hurt property as an industry. For those who aren't knowledgeable, its selling an unrealistic idea of whats achievable & glosses over risk. For those who are knowledgeable, it just strikes me as adding more sleaze to an industry that already has a pretty mediocre rep.

I'm sure there are members on here who've achieved better numbers than this via a combo of techniques picking the right market, right point in the cycle, negotiating, developing/sub-dividing, renovating, etc. Just saddens me that this is the second story i've seen in a few weeks on Domain where the numbers (in my opinion) aren't telling the real story.

 

How?

Still better than not doing anything mulling over details OR counting holes in a sieve.

Big words. No meaning.

Yes, there are. Whats the point?

 

Because its advertising people who are claiming to have made fortunes off highly leveraged investments, when they haven't actually made those fortunes... Given that you're the one who keeps sharing this crap, I don't expect you to see eye to eye with me on it.

> Still better than not doing anything mulling over details OR counting holes in a sieve.

Being sold BS isn't better.

> Big words. No meaning.

Sorry I'll dumb it down for you. Clickbait articles about people claiming nonsense valuations do not help the property industry with its already fairly negative reputation.

> Yes, there are. Whats the point?

There are genuine success stories that Domain could feature, instead they seem to be focusing in on young people with nonsense numbers. I assume this has got to do with the huge amounts of overpriced OTP pouring onto the market over the next 6-12 months targeted at young people.

 

Strata is massively relevant on cheapie apartments, it often takes up a very significant portion of the rent.
Its similar to the way CBD apartments can look good and then you find out the strata is $6K-8K/year. It's often similar %'s.
It's by far the most substantial cost before considering the mortgage.

The difference between gross & net yield on cheapie apartments is massive.

It's what I have found always knocks them out of contention.

 

Almost feel this thread could be moved to the Nathan Birch thread haha.

 

Without seeing it in person, and bearing in mind the 2 comparables listed are inferior, I would suggest $135-150k.

 

The general conception by young people is that housing is unaffordable and it's everyone elses fault but theirs so why bother trying to buy a property. These articles probably give hope to a lot of young people that it is achievable and here is one person who did it and how they did it. I'd take this article over a article about negativity any day of the week.

 

Even if 'dumbed' down all market appraisals and bank valuations, he has earned more (wealth and experience) than a 24 year old reading the article and saying 'looks like I am being sold BS'

138000 => 250000
130000 => 155000
105000 => 130000
169000 => 200000
125000 => 140000
165000 => 180000
Total
832000 = > 1055000

Don't forget the depreciation, tax deductibles, etc.
Share yours mate. Let example speak better than words.

 

Definately the case but no strata on semis in Elizabeth though.

 

Hell, he's got me thinking I might just buy some cheapies as a next move. Not the very bottom of the market but a step or 2 up. At least the downside should be low if the market was to crash. Under 350k properties arent really a possiblity in Sydney.