Join Australia's most dynamic and respected property investment community

Disappointment... we didn't get the property.

Discussion in 'The Buying & Selling Process' started by SWprop, 2nd Jul, 2015.

  1. SWprop

    SWprop Member

    Joined:
    21st Jun, 2015
    Posts:
    5
    Location:
    WA
    Ok... I know I'm suppose to be a hard headed investor but we are bitterly disapointed. :(
    We're in our late 50's and have decided on a strategy. The plan is to rent our current home out which is too big for us, and it'll achieve a rent that will cover our mortgage. We would then purchase a smaller and less expensive home, freeing up cash and putting us in a position in a year or so to purchase another cashflow positive investment property.
    We made an offer today on a unit we really loved but lost out to another offer. AARRRGH! Regretting now we didn't go a bit higher, I think we were trying to be too cold about it and it's backfired and set us back another few months.
    Is the strategy sound? I probably just need to toughen up. :mad:
     
  2. Kinnon Bell

    Kinnon Bell Finance Broker

    Joined:
    14th Jun, 2015
    Posts:
    474
    Location:
    Cairns
    It's tough to be hard headed when it's for your PPOR . Totally different ball
    game.

    Seeing as though it's a unit are there other similar ones in the same block not on market where you could contact the owner and seeing they're willing to sell?
     
  3. alexm

    alexm Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    304
    Location:
    Sydney
    That's life, suck it up and move onto the next one.
    At the top of the week we went to an auction for some beachfront land with the intention of getting atleast one of the lots for a new PPOR. We were outbid for all of the one's that we wanted. Even though one was planned to be a new PPOR, at the end of the day it's only a house and there's plenty more out there. Personally we treat all property's as business deals as that's what they are.
     
    Tekoz and SWprop like this.
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,140
    Location:
    Canberra and Sydney
    Sorry to hear - I understand the frustration. Especially for a PPOR.

    I know everyone will say it - but another property will pop up. They always do.

    There's also a chance that the current offer could fall over if it was subject to conditions.

    Cheers

    Jamie
     
    SWprop likes this.
  5. SWprop

    SWprop Member

    Joined:
    21st Jun, 2015
    Posts:
    5
    Location:
    WA
    Good thought Kinnon Bell, but the other three are all owned by one person. Not the same person as the successfull offerer.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    That's such a shame! Especially in WA, you don't expect competition at the moment!
    I'm sure your strategy is fine - it is a numbers game but sometimes a 'PPOR premium' is worth considering if the property is just perfect for you.
     
    SWprop likes this.
  7. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    When you say WA is quiet or just certain pockets are quiet? I used to rent in Murdoch and wished I bought a duplex or something then in 1995. Close to Freo.
     
  8. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    The strategy is sound. Toughen up and be prepared to miss out 2-3 times. It's a bit harder to keep the emotions in check with a PPOR, I understand that.
     
    SWprop likes this.
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    It's pretty quiet across the board from what I can see - there are always some pockets bucking the trend but in general it's definitely a buyers market. I've seen some big discounts, especially in the $600+ price ranges.
    Murdoch is an area I've been looking at a little too - there's the train there now too, hospitals, uni...
     
  10. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Train??? What? I remember the days of lugging groceries from supermarket in Kardinya. Maybe I should have a poke at WA. :)
     
    MTR and Jess Peletier like this.
  11. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,293
    Location:
    Perth, Melbourne, USA
    Talking Kardinya, I think this is one bucking the system, dependent on the location/property. There is one at the moment on corner lot I believe, cut it up, clean the front/original property and build a nice little one with own frontage, good location, always in demand. Anything where you can add value is worth looking at IMO, see if it does make sense. New product in Kardinya is very much sort after because its unique, don't get many of these. Going to auction I believe.

    MTR:)
     
  12. rhinsor

    rhinsor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    437
    Location:
    Perth
    I missed out on a property about 2-3 years ago by $5000.

    It went up 60% in value in a few years.

    Always other properties to buy
     
    SWprop likes this.
  13. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Do you have the picture? I'm going to Tassie in August (a week)...will be looking around.
     
  14. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,293
    Location:
    Perth, Melbourne, USA
    Check out realestate.com as I think there is only one property going to auction and it clearly is sub dividable, rare. Of course there will be competition, that's why its going to auction.

    MTR
     
  15. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Dumb and dumber are running the CBA...I just found out it did not qualify for a CBA loan...yet 2-3 lenders have indicated I would be able to borrow another 2-3m.

    This is largely due to them removing negative gearing from the serviceability calculator for invetors. This banks has serious idiots working for them....do they realise that with this tightening and reliance on more first and second home buyer they will drop market share significantly. They will realise this in the next 2-3 months.

    Also...over the years...the service has become woeful...i much prefer Westpac/St George...they seem to have lifted their game. NAB is also woeful.

    Seriously...I believe the guys running retail is an absolute idiot! I would be very vary if I had CBA shares at the moment. He has over reacted to APRA...I think APRA went harder on them Westpac because of the trail of stuff ups ...STORM...recent Financial Planning. Perhaps they should sack their whole internal risk team...they have been a sleep at the wheel....no one there seems to have picked up the risk in investor lending early...now they are having to over correct!
     
  16. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    Were you borrowing over 90%? If you can get it under 90 they'll use neg gearing.
     
  17. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    Nope....the issue is that their staff are poorly trained...and you get inconsistent advice.

    The funny thing is you brokers are better trained than their internal staff.

    The funniest conversations was with a guy call Stuart Hickman who proclaimed he was a Senior Manager from Group Customer Relations...he seem to think that the Bank could do no wrong. He was rude...bullying..and condescending at best....he was not prepared to discuss anything. His approach is go to the Ombudsmun...he was not willing to resolve anything. If her works in Customer Relations...then the bank needs to revisit their hiring policies.

    This clearly indicate how the CBA handles any sort of complaints...they either deny or litigate to the end. They have done this before and will continue to do this. Be very careful with this bank.....they have the least amount of ethics of the Big 4....



     
  18. SWprop

    SWprop Member

    Joined:
    21st Jun, 2015
    Posts:
    5
    Location:
    WA
    The property is in Busselton and had been on the market for several months. I think it's more coincidence rather than a sign that the market was heating up. Both offers were well under the asking.