Anyone selling?

Discussion in 'Investment Strategy' started by MTR, 15th Sep, 2015.

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  1. Biz

    Biz Well-Known Member

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    It's not a bad idea. I have considered doing similar in Western Sydney. Buy a 5 acre lot and use as our PPOR, wait for the subdivision to come through in 20 years and sell up.
     
  2. Yson

    Yson Well-Known Member

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    I am not selling but just holding
     
  3. MTR

    MTR Well-Known Member

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    on sell it to a developer and make a killing...:) but what if it does not happen, am I being negative??
     
  4. Dean Collins

    Dean Collins Well-Known Member

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    Sure but make sure you buy your retirement "easy access to shops/doctors/no stairs" etc apartment now as you might be priced out of inner city by the time 20 years from now rolls around.
     
  5. Biz

    Biz Well-Known Member

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    Already own a house in the inner city. My shizz is hedged.
     
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Selling a couple in outer northern suburbs here, onto bigger and better things. They'll suit someone who wants cf + now and development later.
     
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  7. MTR

    MTR Well-Known Member

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    In the process of selling 2 properties, hoping for an offer this week on 1 or 2:)

    MTR:)
     
  8. MTR

    MTR Well-Known Member

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    To date have sold 6 properties in financial year of 2016.

    Anyone else selling? Reasoning behind this, I am curious.

    My motive is purely to reduce debt take some profits off the table while the markets are strong and move onto other markets that are performing/other opportunities. I may also have not realised all the potential gains, but as they say a profit is a profit.

    MTR:)
     
  9. Cactus

    Cactus Well-Known Member

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    you wont go broke making a profit
     
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  10. highlighter

    highlighter Well-Known Member

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    Absolutely.

    I'm a big believer in the greater fool theory.

    The idea of that is that if markets have got to the point where too much profit and market growth is derived from selling assets on to a "greater fool" for more money (i.e. as opposed to purchases by owner-occupiers), you know the market is living on borrowed time - simply because a time will come when the "greatest fool" buys i.e. when new buyers, either investors or owners, can no longer afford to buy in (either due to rising debt, crunching credit, unwillingness, an oversupplied market etc). When price growth is defined by investors (especially recent investors), and when prices have decoupled from fundamentals - rents, physical supply, wages, population growth etc - it's time for caution. When the masses get greedy, when investment is seen by the majority as less of a dedicated, difficult calling and more of a bandwagon to jump aboard ASAP - it's time to worry.

    The point where the "greatest fool" buys is the point where a shift occurs - where buyers/investors stop paying higher prices. At that point, the risk is that many of the recent, inexperienced fools (investors who bought indiscriminately, without a plan, often into new developments) will realise they're not going to make a profit and will exit the market.

    The trick is to check out before the greatest fool buys. It's a very tough thing to time, very tough. But given that this country has the highest private debt in the world, incomes aren't growing much at all, houses are in many places out of reach of those on median incomes, the market is no longer short on supply, banks are clamming up and rates are looking likely to rise - well, I'd say we're closer to running out of momentum than we've been in years.

    Don't get me wrong, I'm not by any means suggesting investing isn't an awesome road to go down. But the worry is that when it starts to become very easy for a lot of "greater fools" to enter the market, taking on ever higher debts to purchase increasingly poor quality assets, you know something's wrong. Property investment is traditionally a difficult thing - it takes attention and intelligence, and being willing to call time if you're not feeling comfortable with the direction of the market is part of that. You won't always be right and you won't always act with perfect timing, but if you're making gains that's the important thing.

    I sold two places in Brisbane last year, paid off my main residence (though I'm renting elsewhere right now). I'm a relatively conservative investor having lived in Ireland, though.
     
  11. MTR

    MTR Well-Known Member

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    bump
    Anyone selling/settled prior to 2016??? Just curious whether investors are actually now rationalising debt and looking at the big picture?? or just continuing to buy buy buy
     
  12. Sackie

    Sackie Well-Known Member

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    Sigh me up for more ... I was actually driving past a place today with the Misses and saw a cool site and was seriously thinking to park and check it out, upon which the wife swiftly said " WHAT, are you CRAZY!"

    :oops:
     
    Last edited: 23rd Dec, 2016
  13. alexm

    alexm Well-Known Member

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    Have a few projects about to hit the market. One beach front reno should (hopefully) hit $2m+.

    A couple more high-end projects are in the design/DA phase plus looking to secure a few more brownfield beach-side project sites (including reno's). Also have a couple of smaller deve's under construction.

    Need to find time to do my company day job :)
     
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  14. Sackie

    Sackie Well-Known Member

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    Wow great stuff! Wish you would post some details In the Development thread but I know privacy is a huge issue to be aware of. Any devs in Brissy?
     
  15. drg86

    drg86 Well-Known Member

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    Accepted an offer on my regional last Saturday. Was hoping to have it under contract today before the 2 week holiday closure, but looks like January now.

    Sold to fund new PPOR build.
     
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  16. MTR

    MTR Well-Known Member

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    Was this a strong market? just curious
     
  17. Perthguy

    Perthguy Well-Known Member

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    We did :)
     
  18. alexm

    alexm Well-Known Member

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    I'd prefer to keep the details private. It is great though that yourself and others post your project details online. It is great reading and appreciated.

    I only focus on the southern Sydney, Illawarra, and southern highlands markets.
     
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  19. drg86

    drg86 Well-Known Member

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    Very poor market. Zero growth in 7.5 years (an ex PPOR I held onto) GFC saw 30% fall in value a year after purchase, just recovered this year. Paid down the loan too much and ended up with too much cash tied up in it. High PPOR loan and low IP loan not so good for tax:oops: Many mistakes but I was 22 when I purchased it, have learnt so much since then and had excellent growth in the rest of the portfolio.

    Onto bigger an better opportunities now.
     
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  20. Gockie

    Gockie Life is good ☺️ Premium Member

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    I like this part.... and that you managed to flick it.
    My sister also bought regional (cheap suburb in Wagga) and held it from ~2009 to 2016. Zero growth, so she made an overall loss, and rents were flat and even dropped over the time too.

    Difference though is that you also bought elsewhere and read this forum...
     

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