Bid like it's 2017!

Discussion in 'Property Market Economics' started by Yek, 2nd Jun, 2018.

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  1. Yek

    Yek Well-Known Member

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    What bubble?
    Sold for $5.75m

    Check out this property on Domain - 20 Wilona Avenue, Greenwich

    20 Wilona Avenue, Greenwich
    http://www.domain.com.au/2014354261

    Sent via the Domain App
     
  2. snoopy

    snoopy Well-Known Member

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    15 Wilona right across from the property above sold for $2.55m 3 months ago. Far better house and views for 20 Wilona but that’s a great price. Market can’t be all bad
     
  3. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  4. Yek

    Yek Well-Known Member

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  5. Sackie

    Sackie Well-Known Member

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    Screenshot_20180603-080254.jpg


    Also if you read Matt's post again you'll see the answer ;)
     
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  6. highlighter

    highlighter Well-Known Member

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    It's important to keep in mind some assets will always do well. With the proportion of investors in the market falling, regular home buyers will replace them, so the need to appeal to that group has become critical. You just need the assets those buyers want.
     
  7. Eric Wu

    Eric Wu Well-Known Member Business Member

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    South coast is hot. Had a friend trying to buy at Port Kembla 2 yrs ago, 500m2, 3 bedder, around $410k, he thought it was too expensive, :(
     
  8. Sackie

    Sackie Well-Known Member

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    Poor bugger :D

    I've seen this time and time again. Ppl always thinking markets are too expensive and never get in. They're looking for guarantees to make money buying at rock bottom prices. Unfortunately it doesn't work that way.

    Screenshot_20180603-170151.jpg

    Screenshot_20180603-170211.jpg
     
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  9. Eric Wu

    Eric Wu Well-Known Member Business Member

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    a bit too late for him now.
     
  10. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Me too Leo - and I have tire kickers to ring to discuss the BA service (and the market) and their fear is something I can almost smell through the phone. I usually let them go as I don't ever want to convince someone to buy against their own inner competing emotions. The same people won't be convinced to buy in a market that is cheap (just before a boom) because they convince themselves something is fundamentally wrong with the area. Its a double bind, if it hasn't grown in the last few yrs something is wrong, and if it has grown in the last few yrs it must be overpriced. I'm not saying corrections or stagnation never occur, just that this particular mindset is fixated on loss and very difficult to shift.
     
  11. Sackie

    Sackie Well-Known Member

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    Very ethical of you mate.

    Agree mate. And I think if people are looking to BAs to convince them to buy etc, then they shouldn't be buying in the first place. Its not a BAs job to convince anyone of anything, but rather to help guide and facilitate a good purchase that the client already wants to make.
     
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  12. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    just curious, what do you think of investors who bought it at peak of Perth boom 9/10 yrs ago?
     
  13. Sackie

    Sackie Well-Known Member

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    I think anyone who buys at the peakish part of any cycle (and there are clear signs indicating a dramatic increase of risk) doesn't know how to do market due diligence.
     
  14. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Peak is determined in hindsight,
    now I am confused what you mean by " I've seen this time and time again. Ppl always thinking markets are too expensive and never get in."
     
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  15. Sackie

    Sackie Well-Known Member

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    Yes peaks are determined in hindsight, but increase of risk can be measured as time progresses.
     
  16. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    how do you measure risk?
     
  17. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Lets compare IP holders in Perth and Sydney who has invested five yrs ago.
    Is Sydney investor brilliant and Perth investor dumb?

    what made one a great buy and other a dumb investment?
    I guess I am trying to understand the difference between luck and skill.
     
  18. Codie

    Codie Well-Known Member

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    Wouldn’t supply vs demand metrics tell the story? Stock vs listings etc even in hindsight, I’m pretty sure the story would be clear if you done the correct DD
     
  19. Yek

    Yek Well-Known Member

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    Efficient market hypothesis. . There are always 2 sides to a trade... The reverse could be said of those that sold out of Perth and Sydney pre bust/boom.
    There has been no shortage of commentary warning the lemmings about irrational exuberance since 2015. Buyer beware. What would be an almighty kick in the guts would be govt policy that steals from the prudent to prop up the investor/broker/rea parasites.
     
  20. Sackie

    Sackie Well-Known Member

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    Some of my list:
    - looking at last boom period and try to determine (guestimate) where markets are at in a particular state.
    -analyse DOM increasing/decreasing
    -analyse Discounting rate increasing/decreasing
    - Look over last 10 years CG and changes in median prices in state and chosen suburbs
    - Media sentiment
    -General market sentiment
    - ACR increasing/decreasing (more relevant to Syd and Melb)
    - SOM low or high, %age changes
    - Buying in the majority stock type' dwelling of a suburb.
    - Vacancy rates trending for particular suburbs
    - %age of owners/renter/mortgage holders in chosen suburb
    - ripple suburb potential
    -add value potential
    -buy BMV potential
    - Talking to different players on the ground and discussing with other peers. Very, very important.

    @ Mr wiggles maybe have a read of these books. They're interesting, May help you. Though I seriously doubt you're interested in building wealth.
    1. Grow Rich with the Property Cycle by Kieran Trass
    2. Books
    3. 20 Must Ask Questions for Every Property Investor
     
    Last edited: 4th Jun, 2018
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