Post your worst price dropped ip

Discussion in 'Investment Strategy' started by TMNT, 6th Feb, 2016.

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  1. Sackie

    Sackie Well-Known Member

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    Yeah I hear ya buddy. I think like you said the income limited your buying options..

    Once you offload and bring your CF position to a neutral one, do you have a new plan going forward after that mate?
     
  2. BigKahuna

    BigKahuna Well-Known Member

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    You are spot on. I've been here 30 years and Canberra has always been highly susceptible to change of government. I think that will slowly change as the population grows to sustain itself and is not reliant on public service.

    During the last downturn nothing moved for years while the Liberals were in power. As soon as Labor got back in, whoosh, things went wild. It'll be interesting to see whether that happens this time. imho, not a good time to sell in Canberra (although I hear that a knock-down in Forrest fetched $4 million last week).
     
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  3. TMNT

    TMNT Well-Known Member

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    not sure to be honest,

    at my age (late 30s) and with a lot of IPs
    I feel that I have a lot to lose, so im always on the look out, for good deals, for reno and refinance, which increases my risk, so im thinking of not refianncing, or refinancing and putting into offset and increasing my buffer

    im also thinking about doing a business, however, im not going to buy one and hope for the best, im going to start small and build it up, and have little/no commitments like rent, office, stock, so if it goes pear shaped, I minimise my loss
     
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  4. New Town

    New Town Well-Known Member

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    A bit different but a mate bought a nice boat in Perth during the mining boom then a year later sold it back to the guy he bought it from for $100k less. Ouch!
     
  5. Whitecat

    Whitecat Well-Known Member

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    Which suburbs? Forest Lake? My guess is relatively distant ones perhaps with new houses on them?
     
  6. Truly Exotic

    Truly Exotic Well-Known Member

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    Not a property

    But i have invested in a single diversified share fund.

    I checked for the first time in a few years.
    Only down MINUS 10%!

    And i bought in 2009!!!

    Basically went down 40% in about 2012. And now at its peak of minus 10%

    Can only laugh
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Falls Creek in Victoria had a big fire sale over 5 years ago, prices are still very subdued. Some units sold for less than their levies.

    To make matters worse all of the property is leasehold and income is very seasonal.
     
  8. HUGH72

    HUGH72 Well-Known Member

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    ASX200 currently at the same level as 2006:oops:
    At least there are fully franked dividends.:eek:
     
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  9. fitwealth

    fitwealth Member

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    There would be stories out there much worse than anything we have heard so far. Spare a thought for those in Dysart or Moranbah who bought at the height of the mining boom. Properties in Dysart have gone from 600-700k in 2012 to under $100k today. Moranbah is similar going from up to $1m to $200k today.

    These towns are in Australia and it is happening right now.

    My worst is in Mackay, purchase (build) of $500k, I'd get around $400k if I had to sell now. The rent has gone from $800 per week to $370pw now! Ouch. It's only one of many properties but it still hurts.
     
  10. Marg4000

    Marg4000 Well-Known Member

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    Brisbane is a big city.

    Our suburb has gone up nearly 30% over the last 3 years and probably doubled since 2007. Thankfully we are in an area highly desirable to Asian owners.
    Marg
     
  11. dabbler

    dabbler Well-Known Member

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    No, most of Brisbanes area is only getting back to prior levels, or just passing from the lower end I look at.

    Some suburbs have pulled away a while ago, but you still see a lot of places where they are not going to be ahead after years of holding or just passing break even, I think a lot of people are flicking them now that they have recovered & that could turn out to be a good move.
     
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  12. TMNT

    TMNT Well-Known Member

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    damn, 700 to 100k is terrible

    surely anyone with more then one would be bankrupt by now

    just checked you can rent a 3bdr for $100 per week too,

    313 rentals in a population of like 10 people too
     
  13. fitwealth

    fitwealth Member

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    I'm sure many would be if banks were able to call in the loans. As it stands, unless they default on their payments they can continue servicing the debt, with huge negative equity. If interest rates rise and they can't make the payments, then many will be bankrupt.
     
  14. dabbler

    dabbler Well-Known Member

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    Brisbane, like others, are big areas with different things going on.

    But you can broadly say, it has been on the move in a lot of places, and has played catch up from GFC and floods.
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    At those prices you could afford to rent a whole house for each kid not just an extra bedroom.
     
  16. dabbler

    dabbler Well-Known Member

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    Well that would be one way to lower outgoings if the going gets a lot tougher....
     
  17. Depreciator

    Depreciator Well-Known Member

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    Bought a nice furnished flat in a well positioned building in 2004 for $330K.
    Then developers built lots more nice flats in well positioned buildings - *******s.
    Sold in 2014 for $320K.
    Still we had a lot of holidays in that flat, so that was some consolation.
    Scott
     
  18. TMNT

    TMNT Well-Known Member

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    700k 90% lvr, 5% is 630 pw

    rent 100pw, is like 60 pw including rates and mgmt fees,

    thats almost 600 pw short,

    id be bankrupt if I had 2 or more

    that scenario scares me and puts into persecptive
     
  19. Tyler Durden

    Tyler Durden Well-Known Member

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    Ouch indeed. The glory days were 2009-11, business associates were picking up Riviera's from Florida and then flipping them over here (after a few boozy trips to Rotto of course). Post GFC fire sales, the strengthening AUD and big money in Perth made it a very lucrative hobby.

    Sounds like it's gone full circle now...I wonder if the Yanks will start buying them back? :p
     
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  20. ashish1137

    ashish1137 Well-Known Member

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    :eek:
    Is this one of the mining towns?

    I hope you get away from it soon.

    Regards
     

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