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FOMO and IP for PPoR

Discussion in 'Property Market Economics' started by Be Developer, 21st Jun, 2015.

  1. Be Developer

    Be Developer Property Developer Business Member

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    I am noticing two trends

    1. FOMO, fear of missing out
    2. buyers are buying Investment properties first in order to buy PPoR

    FOMO (Thanks to @MsAli for abbreviation)

    spent a day helping a friend yesterday to find a free standing (torrens title home) in southern Sydney (past Campbelltown)
    her main reason to buy house was FOMO , she didn't care what price was, or other factors related to properties.. she just wanted to buy.

    went to an open home in Narrlen.. corner block....nice single story brick home.. had all sort of easement, convent, restriction on use of land... most buyers didnt even care about it.. first 5 min of open home agent had around 4 offers.. it was listed for offer over $480k.... ended up selling for $575k

    IP for PPoR

    i personally think this is a good strategy in current market..


    love to hear you view?
     
    Tekoz likes this.
  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I'm not quite following this?
    What's the strategy and who is it good for?

    Good time for sellers to move their more difficult properties.
     
  3. Be Developer

    Be Developer Property Developer Business Member

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    i am seeing at plenty of young buyers are in hurry to buy with fear of missing out...... using small deposit amount to go higher LVR/borrow from friends and family to buy over priced property.....



    on other hand

    Lot of buyers are going for investment property to get in to property market..
    using Higher LVR.. Rental income to maximize their borrowing capacity.


    either way.. both trends are pushing property prices up.. which is good for sellers...
     
  4. Arashi87

    Arashi87 Well-Known Member

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    :D
    Mainly because of low interest rate ... Plus FOMO but if theyre reading ss and here, then they shouldnt be FOMO :p

    low interest rate + high purchase price = high interest rate + low purchase price ?:rolleyes:?

    I dont know about purchasing ip as ppor or vice versa is ideal considering emotional decision can often lower investment return :D all depends on the market i suppose ...
     
  5. sash

    sash Well-Known Member

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    FOMO = **** whooping down the track...keep the powder dry in Sydney...only deranged venture in this market,..... :(
     
  6. Be Developer

    Be Developer Property Developer Business Member

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  7. sash

    sash Well-Known Member

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    I spend all of today looking at Melbourne again....man...I would buy 10 blocks today...but that would freak the banks out...so have to do 2-3 at a time....patience...patience..%#$$%@
     
  8. Be Developer

    Be Developer Property Developer Business Member

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    @sash...why not buy acarge and do subdivision your self?? :):):):)


    Saves you buying 10 blocks..
     
  9. sash

    sash Well-Known Member

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    Yes...thought of that...but as I said...I am lazy...lazy....lazy...but have looked at a couple of blocks..which are about an acre or so in Melbourne.....
     
  10. Be Developer

    Be Developer Property Developer Business Member

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    @sash land subdivision is just paperwork.. No less then 4 finance application/contract of sale..

    Call it sashland..;)
     
  11. Honeydew

    Honeydew Well-Known Member

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    Hi Sash,

    I'm assuming you're referring to one of the Melbourne outer fringe suburbs? When do you think the current boom in melbourne will ripple out and peak in these areas ?
    Also do you think there will be a good chance of future over supply of stock versus demand ? (considering the rental vacancy in melb is not as tight as sydney's etc)


     
    Last edited: 21st Jun, 2015
  12. sash

    sash Well-Known Member

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    It is already happening in the Southeast of Melbourne...for example land prices in Officer have risen from a base rate of $125k last year to 195k now! Still plenty of land being released...but prices are increasing...continually...

    As for vacancy there are markets within markets...do something different and target a demographic..

    As for the Outer North growth is just hitting...mind you the outer north is only 25-35 klms out...whereas in the SE it would be almost mid suburbs. The new estates start at about 45 klms out.

    The West is going nuts...but a huge amount of investors there...

     
  13. Honeydew

    Honeydew Well-Known Member

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    :) Thanks Sash.

     
  14. Egga

    Egga Member

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    Yes, it's a good foot in the door, wait for the gains then back in again.
     
  15. Tekoz

    Tekoz Well-Known Member

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    Yes, that's what happened in Sydney I guess.
    Because in the most new land release event, those lots have gonve in few hours only, not more than 1 day.