I hate (love) to say I told you so! The State of the Market.

I was involved in three property transactions today and have been astounded at the state of the market in Sydney and Melbourne.

1. I convinced my mum that she at 80 should no longer own investment property as she no longer has the temperament to handle the problems and after land tax, vacancies, repairs, agents fees and costs, she only nets about $300 a week out of each of her two properties each valued at about 750k. So she agreed to sell this one as the holiday house has too many memories of my late father despite being rented permanently for the last few years. After 2 weeks of hard work I renovated the home for mum and it hit the market yesterday at 9.00am with 12 good offers by lunchtime today. The highest was $40k above my valuation.
https://www.realestate.com.au/property-house-nsw-quakers+hill-134749830

2. A member of my family was interested in a diy up investment unit and I recommended one that was cheap, affordable, easy to rent and needed major renovations that would add to its value. I calculated value at $350k once refurbished and retail cost of refurbishment at $40k, so bid to $310k was my advice. https://www.realestate.com.au/property-unit-nsw-richmond-134551574 The unit sold for $335k $40k above reserve.

3. An associate wanted advice on building two terraces at 248 Rae Street, Fitzroy North VIC 3068 | Domain. I calculated costs to demolish and build, including interest, council fees and a 20% profit margin which is considered low in development. I told him not to bid above $1.875m as the margin could be as low as 18% and there was no allowance for delays, increased costs or sale prices going below $1.95 per terrace on completion. This value compared favourably with the agents guide of $1.6-1.85 and later was in the range of the reserve. The auction saw this 412 metre block of land sell for $2,351,000 being over $500,000 above the agents maximum value bracket. And I don’t blame the agent!

This was one hell of a day in real estate and when you consider the ASX, I swear all markets have gone crazy, if only someone could have predicted this at the low point in March, so we could all have jumped on board.

The next few months will make Millions!

 

This was one hell of a day in real estate and when you consider the ASX, I swear all markets have gone crazy, if only someone could have predicted this at the low point in March, so we could all have jumped on board.

The next few months will make Millions![/QUOTE]
Some-one did, said Ducks lined up and a once in 3 lifetimes opportunity. But not many took advantage of getting only dreamed of yields and asset growth in real estate and great wealth building companies. Highly optimistic - covid19 the catalyst for great things Post # 9
Couldnt resist APT @ 9.00 after looking at it for a few days up 200%, others I mentioned before buying in the last month, ALC, PPH, NVIDA, up 60%, NAN, CURE 25%, Teladoc 20% and long term cash cows DDR 35% RFF 17%., a bunch of others have done as well but if you dont mention them at the time they dont count. Greatest bull run ever and people still sit on their hands waiting.

Fargo, 14th Apr, 2020Repor

 

But the vast majority feel the safety of buying when the market is already up. And no amount of research will convince them to pick up that fallen knife when it’s sitting on the floor.

 

I have learned that when the highest number of people saying you are going to catch a falling knife, that’s the time to jump in. Not only the prices are good, the choices are abundant too

 

I can tell you as a buyer's agent that I am busier in sellers markets than I am in buyer's markets. It's silly, but I have learned that this won't change about people.

When covid hit, the monetary overreach and the property boom was very easy to see. I called a "melt up" as early as March. When it comes from a buyer's agent though, I suppose it just sounds like spruiking.

 

Some old fart has been posting on PC for months that a golden age/era is coming.

I just did a search - 7 posts since mid-August.

I wonder who that was?

One does get a little tired of the naysayers/doomsayers.

IO cliff, property market crash, share market crash, ...

 

It seems that a significant shortage of stock may be contributing to a lift in prices in some areas.

 

It s funny how people are happy to pay a professional for advice, but if the same professional gives honest free advice they don’t like, it’s ignored or called BS.

I spoke many times as a public speaker being paid $10k for advice on business management and growth, strata and strata legislation, family and children. Yet I would many non paying clients including once an uneducated pensioner argue that I am only saying something against her because I am a biased gay man??? I have 4 children and a slight lisp.

 

It does look like we do not need high immigration to maintain property prices. I have seen in the last four weeks prices had been moving quite nicely up and interest rates wont follow up for quite sometime

 

Wait until migration starts - and it will at some stage. Then the fun really starts.

 

There is definitely pain the property industry, but it is showing for landlords as lower rents.

 

With the instability of a US election this coming week and Christians being beheaded in France, shouldn't we be on the verge of a calamity?

 

Nah, not a calamity - just the end of the world (again)!!!!

 

Listened to a great property presentation this week.

Normally 5% of dwellings are transacted each year. We are at 20 year lows in terms of stock transactions. Hence the lack of stock

 

I find those figures very hard to accept. That means the average Aussie retains a house for 20 years.

 

Although what will temper the price/demand effects of migration is expats (who scurried back home) leaving again.

 

Those figures are indeed correct - c$500k houses sold on average each year so that's your approx 6% of the national resi stock

 

I am way better than average - we have been at our current address for 32+ years

 

Us too. But neither of us is "average", are we, @kierank