Picking yourself back up.

ohhh yeah.

 

hmm I am thinking to pick up in regionals

 

Bring plenty of lube.

 

well brisbane is no better so far

 

Have I got a deal for U !
Will PM you.

 

Aimon can definitely relate to you and agree this is a "great" place to share those details.. I can relate as I have a property that I've been considering a "dud" as well and it's my first one a 334k townhouse up in Zillmere bought May 2015 and has been valued at 335K in September this year. Given I've got a guarantor in place and owe ~103% (been paying IO) and it's positively or at worst neutrally geared and after speaking to a few guys on here about it I've decided to re-shape/frame my mindset.

There's usually plenty of silver linings out there i.e. mine doesn't cost too much and is really forcing me to make sure I'm disciplined with building up the deposit to buy the next one rather than having it too "easily" with equity. Ultimately while I and probably all of us would love 4 or 5 well purchased Sydney properties it highlights that if we want something enough you'll probably make some mistakes along the way.. Another option is to sell although would do some serious analysis on the area first to make sure you aren't selling something that is actually okay in the scheme of thing

 

Hopefully it "forces" you to learn how to conduct DD much better. That will be the game changer for you.

 

Agreed Leo! Being a bit naive and trusting a buyers agent based on their recommendation is a vital lesson I've learned. As they say you can outsource responsibility although no-one cares about the result as much as what you do

 

Great thing is your willing to learn and not being defensive, good attitude mate. Sharpen up on your DD process and you'll do alot better. Well done on getting started.

 

May have paid to much at the time. I wouldn't rush to sell now, if Brisbane is to have its run in the next couple of years, and when people are priced out of Geebung it should drag your town house up a bit.

 

I just want to know why it is a dud? the suspense is killing me



MTR

 

You’ve admitted you bought a lemon? That already puts you ahead. Most people would live in denial and keep reiterating that long term it will self correct.

 

Because paid 334k in Zilmere TH 2.5 years ago and no growth when ( painfully to hear) other place have done well depending where and what you bought.

 

True, next step is action, serious number crunching required

 

That is not a dud
Number one rule is "preserve capital" and that is what you have done.
No one can hopen to replicate Sydney growth constantly

 

When compared to other stock selling that time in Brisbane, to me its not the greatest choice. People can either live in a state of denial or try to get better.

 

tbh Zillmere is not a dud suburb. The problem here is you used a buyers agent who at the end of the day doesn't care of the outcome and honestly you probably overpaid for it in the first place.

Without knowing intricate details of your purchase its hard to comment otherwise. Is the townhouse a 1 or 2 bed or 3 bed?

Just because you bought something in a good/decent suburb and it hasn't grown from your purchase price does not necessarily mean its a dud. It most likely means you overpaid for it in the first place.

Just a quick 5 mins search on Zillmere suburb profile for 3 bedroom houses it shows a average price increase of $403k in 2014 to $460k in 2016. It should be higher now.

2 Bed units were avg $334k in 2015 to $365k in 2016. Not sure if TH's are considered in the same glut of oversupply as units which would also be a factor. But that should have been part of your Due Diligence knowing that there was an apartment oversupply when you bought.

 

Thanks Leo, all part of the process for me, have to get a bit more systematic on the DD process and have learned/realised that challenging those on why they've given advice and having your own DD is vital.. Not super concerned you lose if you sell although it's not seen a whole bunch of growth plenty of people I've spoken to have had similar "lemons"

Yeah, I'll simply save my way to the 2nd IP + get creative with earning extra income, for me no point crying over spilt milk. If there's wasn't a guarantor in place may have considered selling

Thanks Jaybean, agreed!

I'm from Sydney, have seen properties in my local area see close to 60% growth last 2.5 years.. You can't change the past, can only change the present and future!

due diligence on the next purchase will be vital!

When you're looking to be financially free by 40, sitting still for 2 years is a "dud" not a tragedy although even 5% would've been nice.. Not the end of the world though

Yeah 100% Leo!

BA's can be great although the particular one's I used weren't fantastic especially for the fee paid, could've probably negotiated better myself, the place was on realestate.com

It's a 2 bed 2 bathroom, paid exactly the average price for 2015, which goes against the rule of buying under market value.. 335K is the valuation so in reality it could and would sell or should sell for higher than that although it's being affected by the glut of units and valuers in Brissie have generally been ultra conservative.. Houses have done well in the suburb, TH's not so much due to the supply that has come on the market

 

Thanks all, appreciate the input, didn't want to take away from the original post and question. Wanted to empathise with Aimon as I'm sure all of us have made that purchase we feel we could have done better on!

 

I've been working on setting up more income streams over the last few of months. One thing I've learned very quickly is that money doesn't fall into your lap just because you took some action. You can take alot of action, do what seems to be the correct method and still no profit. I think business requires you to keep picking yourself up. If it was that easy to make money everyone would be rich.