Join Australia's most dynamic and respected property investment community

Post your worst price dropped ip

Discussion in 'General Property Chat' started by TMNT, 6th Feb, 2016.

  1. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,397
    Location:
    Melbourne
    Ok. So let's see if people have the guts to admit a dud ip


    What's the property with the biggest % or net drop from purchase price as of today (and suburb)

    Mine isn't too bad

    Bought 180k went up to 250
    Now down to about 175k
     
    Colpio79 likes this.
  2. adrian_christian

    adrian_christian Well-Known Member

    Joined:
    27th Jul, 2015
    Posts:
    147
    Location:
    Mauritius
    What was your suburb?
     
  3. Santaslayer

    Santaslayer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    74
    Location:
    Sydney
    One of mine has gone sideways for about 3 years straight since purchase!
     
  4. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,708
    Location:
    Sid en e - olympic city
    Sydney....valued and re financed on 700k, shortly after forced to sell and full campaign only reaped 560k, at the time labour govt just meddled with the duties, it caused some instability and was at the end of growth cycle.

    Worst part was about 70k sunk into it which would not have contributed to the sale price, only made it easier to sell.

    That and a development which cost more than that were 2 bad losses, lot of people got caught in developing when market turned.
     
  5. Meisterin

    Meisterin Member

    Joined:
    19th Jun, 2015
    Posts:
    18
    Location:
    Sydney
    dabbler when was this? And which suburb?
     
  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,932
    Location:
    Sydney
    That was my worst one too!
    Then over the next 2 years it gained 45% on purchase price. :)
     
    BigKahuna, Leo2413 and Paterson00 like this.
  7. Casteller

    Casteller Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    344
    Location:
    Barcelona
    My worst dropped about 25% over 4 year period. Still down at that level but seems to be bottoming.
     
  8. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,123
    Location:
    Kimberley and NZ
    I've got one just returning to 2007 value. It dropped around 30k at the bottom, but you couldn't sell anyway, the market died. Finally putting it back on the market whilst there are some signs of life.
     
  9. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,262
    Location:
    Melbourne
    Buying at the top of a cycle and it cooling off a bit and loosing day 5% is one thing.

    However where are you guys buying properties to loose 25%???.. Jesus
     
  10. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,461
    Location:
    Perth, Melbourne, USA
    Mandurah, Madora Bay, WA - this market boomed pretty much overnight and then tanked in 2006/2007

    Purchased 2001 - $199,000, bank value in 2004 - $600,000

    $400,000 (approx. value today)
     
  11. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,123
    Location:
    Kimberley and NZ
    Europe perhaps????
     
  12. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,262
    Location:
    Melbourne
    Or Mericccaaaa
     
  13. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,461
    Location:
    Perth, Melbourne, USA

    70% falls in Atlanta USA 2007 crash, market has now recoveredi


    grey
    there are posts on PC where some have experienced 80% drops - mining towns
     
    Last edited: 6th Feb, 2016
  14. peastman

    peastman Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    119
    Location:
    Melbourne
    Over a period of 10 years in Kalgoorlie
    Bought $185k
    Went up to $300k
    Then down and sold it for $235k
     
  15. Casteller

    Casteller Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    344
    Location:
    Barcelona
    Costa Brava, Spain. Prices have dropped 50%, but I bought 2/3 of the way down, so my loss is 25%

    25% drops are not unusual in global real estate markets. I would expect many parts of Sydney to experience drops of this magnitude in the next few years from the peak.
     
    barnes likes this.
  16. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    1,326
    Location:
    melbourne
    Man that's crazy - since you sold any chance to reveal where that suburb is?
     
  17. barnes

    barnes Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    674
    Location:
    Adelaide
    18 years ago experienced a fall of 55% on IP purchase in a single year, broke even and sold 3 years later.
     
  18. Mac Fields

    Mac Fields Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    168
    Location:
    NSW
    Canberra unit - bought 2008 $245K, sold 2015 $255K - who said prices double each 7 years....

    Mistake I learnt from in this - -keep an eye on the market and if you see market movements starting that might affect the property's prices, make a decision quickly. I didn't see the apartment building boom in CBR fast enough and was caught up by it.

    Also, (purely my opinion here) that CBR's market is heavily influenced by political movements.
     
    BigKahuna likes this.
  19. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,262
    Location:
    Melbourne
    This forum is mostly geared towards domestic markets. My comments were in reference to that.
     
  20. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,262
    Location:
    Melbourne
    The position I've taken and still stand behind is that you are ignorant if you believed mining towns were sustainable investments. They were cyclical at best. No empathy from me.
    Greed clouds judgement..
    Thanks for your reply MTR
     
    S.T likes this.