If you were Starting RE again in 2021 what would you do ?

Absolutely. Double time I say. Nothing lasts forever. The eventual retraction of markets will undoubtedly come, at varying levels of intensity depending on stock and location.

Some will be left standing with no chair to grab.

Recently an acquaintance asked me if they should go ahead with an OTP apartment purchase for an investment. The price was insanely inflated and the strata was exorbitant. Massive building.

I told them the odds of this property performing well in the next 10 years is minuscule.

So what do they translate that to mean? Buy!

Oh well.

 

Crazy

 

I don't get it! People ask for an opinion, and then when you give it, they say "Nah, I'll do it anyway". I guess they really don't want an opinion at all, unless it agrees with their own.

 

Exactly.

 

You dont understand property ??? The value of their property gained $2.1 B, after realizing $80m. Gotta luv capitalism ,Privatising gains and socializing losses. Reduced operating costs and goverment subsidies turning $540 million loss to a $ 40M loss. It is losing peanuts to make $$$$Billions.

 

Interesting

 

Yes it's very interesting ...thanks

 

I once spoke with a sales agent around World Square (those “pop-up” booths) selling some OTP garbage to gullible purchasers. With the beautiful brochures and impeccable sales pitch selling you the “dream” of making huge profits from the OTP deal, I can see why some could fall into this.

I walked past this real estate agent a few months ago and saw an OTP townhouse in the upper north shore for $3.5m. Think about the amount of equity you lose instantly the moment to buy one..

 

i think we cannot generalize this . May be need to mention what to lookout for in the OTP or brand new .
It really worked out well for the OTP purchase we did .

 

yup, sorry !

 

Great points, can i request for few example of buy and add value sort of deals ?

 

Wow, cant believe you are saying this after contributing so much to the property enthusiasts

 

Lets a you buy a house which requires renovation for 500K and you need to spend 100k more . However, if the fully renovated house is available for 620K which one do you prefer and why ?

 

the renovated house $20,000 is not much of savings buying in that price range for all the work you put in

 

So do you need to spend 500k or 600k? In any case if I'm not able to add value to an asset in some significant way, I'm not interested in buying it.

 

yup, its so hard to find a property nowadays where the cost difference between renovated house and ready to move in house is big.

 

These are my thoughts also. I'm looking for some significant point of difference.

 

Yes, I think we have to be careful giving opinions too, because many people like to blame someone so that it eases their conscience.

I remember reading in Jan Somers white book where she talks about this very issue.

 

Yes I am finding this too.

There are still great deals out there though and probably in every market.