Join Australia's most dynamic and respected property investment community

Buying IP's for the sake of it

Discussion in 'General Property Chat' started by Darlinghurst Boy, 15th Jul, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    866
    Location:
    Darlinghurst Sydney
    i often read on here posters writing that they want 10 IP aiming for 15 this year etc.
    I really cant understand buying ips just for the sake of getting numbers up, wouldnt it be better to own say 3 ips in rising areas of Glebe in Sydney rather than 20 ips in muswellbrook Moree and Windale?
    Some of you people as one real estate agent told me in Maitland NSW yesterday are rushing into Country towns from Sydney etc and quickly buying homes that you know nothing about just to become a investor as such.

    Eg Maitland NSW last Saturday young couple from Sydney inspecting a house advertised 275k say to the real estate agent in front of me and a whole group of Maitland people inspecting the property that they will pay 300k for it !!
    They make sure everyne hears them.

    BUT 30 minutes before and this is before the real estate agent arrived i heard this young couple telling another guy they were still paying off their unit in Lane Cove in Sydney and were using equity from that and they had 8 properties.
    Now why would u need to tell everyone you will go 25k over the asking price and i think these type of people are not really propertty investors but mum and dad type who watch tv shows and then get a bit rich with their sydney property rising and rush out there and throw their money around .
    They will lose interest soon you watch .
     
    Last edited: 15th Jul, 2015
    WattleIdo likes this.
  2. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Because they are Specufesters.....seriously that is dumb dumb....

    I just bought a place in Brissie where my performance as a first naive investor should have won me the Oscar...the Golden Globe....and BAFTA. The amount of dumb questions I asked....was astounding. I just secured a place off market for about 40k under the market. With a tidy there is possibly another 20-30k in it.

     
    teg499 likes this.
  3. Hodge

    Hodge Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    513
    Location:
    Melbourne
    Sash what's your strategy with asking the dumb questions?
     
    aussieB likes this.
  4. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,122
    Location:
    Brisbane
    Never ask a question you don't know the answer to.
     
    Natedog likes this.
  5. Hodge

    Hodge Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    513
    Location:
    Melbourne
    I agree but wouldn't real estate agents rather deal with seasoned investors rather than noobs? Saves them a lot of hassles.
     
  6. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    923
    Location:
    Adelaide
    They probably read about Nathan Birch:rolleyes:
     
  7. Jamie_Monkey

    Jamie_Monkey Member

    Joined:
    24th Jun, 2015
    Posts:
    22
    Location:
    Melbourne
    Real estate agents will deal with anyone who they believe will actually put their money where their mouth is....regardless of what comes out of that mouth.

    All they want to do is shift a property quickly, collect their commission and move onto the next one
     
  8. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,936
    Location:
    Brisbane
    Hey Sash. How much do you plan on spending on the new place? And what do you think it will be worth when done? Are you aiming for a finished value in line with the renovated one? We looked at the other one last night (after you snaffled the one we were keen on seeing :)). It was pretty nicely renovated. Had we wanted to offer on the renovated one we would have gone in lower than asking as it is tiny (small but well formed :D) and for the asking price there are sixpack styles with larger living areas.

    It had good rent for purchase price.
     
  9. Pistonbroke

    Pistonbroke Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    395
    Location:
    Guangzhou
    @Hodge Yes, it's easier to deal with the pros but better to extract the extra $$ from the punters.
     
  10. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    This is the; "humble brag", and/or; "telephone number" brigade.

    Pay no attention, or call them out and have a ding-dong fun argument and upset them.
     
    WattleIdo likes this.
  11. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    How about; "what do they need to sell it?"
     
  12. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    I think their preference is to deal with folks who will pay money.
     
  13. Pistonbroke

    Pistonbroke Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    395
    Location:
    Guangzhou
    .


    Both @Bayview. Seasoned investors will tell you how much they want to pay, noobs how much money they have to spend.
     
    WattleIdo likes this.
  14. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Been there, done that..

    Wise strategy sometimes for an agent to get the impression YOU have no idea what you're doing and that they're going to pull their wool over your eyes when in fact, it's the other way around.
     
  15. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    455
    Location:
    Sydney
    When I started investing seriously, our airm was to buy 10 properties in 10 months. We were 33 at the time and the plan was to sell half down at 40 and retire on the rents.

    We got to 5 in 3 months but then I had job issues and property buying was put on hold. If we had bought the other 5 back then and sold off in this boom we'd now have 5 unemcumbered properties bringing in 60k net rent.

    So those who sprout at how many properties they want to buy may actually have a reason for it and not just chest-pounding.
     
    Brian84 and fols like this.
  16. Hanison

    Hanison Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    242
    Location:
    Brisbane
    The loudest person in the room is most often the weakest.
     
    Jacque likes this.
  17. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    I often wonder how this can occur?

    I mean; the buyer wants to pay nothing, and the seller wants to retire off one sale.

    The agents chips away in the middle, telling and receiving lies from both sides, and trying to close the gap?.

    How can the con occur? The agents know all these games and strategies....the cashed up buyer who dresses down to look like a homeless guy, the cashless poser who hires a Jeep Grand Cherokee for inspections and looks like Donald Trump, and everywhere in the middle.

    An experienced agent will know the "would-be-wool-puller-overers" in a flash, and just crack dumb and keep on playing, and have a massive chuckle with the guys back in the office about the clowns he/she is dealing with each day..
     
    Jacque and WattleIdo like this.
  18. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    Ah, but you are in the rare league, baby!!

    Also; I'd wager you'd not be standing there in the crowd talking just too loud enough about your plan so everyone would hear.
     
  19. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    What about in inexperienced agent?
     
  20. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    ...in this case...the agent is so pissed off with the other party that he is infact giving you the upper hand....if you are really nice and communicate well...I find the Brissie agents really responsive.

    Both my partner and I came across like absolute amateurs.....we managed to pull it off without looking over the top.

     
    York likes this.