Discussion in 'Introductions' started by au contraire, 30th Dec, 2015.

Join Australia's most dynamic and respected property investment community
  1. au contraire

    au contraire Well-Known Member

    30th Dec, 2015
    Hi all,

    I have been following this forum for awhile now as a corollary of trying to understand more about the property market, particularly in Melbourne. I have appreciated hearing others on the ground reports from auctions to negotiating deals in "hot" areas.

    Whilst I have tossed up the idea, at present i am not a potential investor but rather a person looking for a (fairly priced) first home to live in. Just a liveable fixer (a bit) upper. And initially I believed investors were my competition.

    Yes I want the 2brm+ house and yard (our large dog has something to do with that too) with room to improve. There are very affordable areas in Melbourne but the entry (stamp duty) and lifestyle (proximity to work, family, things etc.) costs prohibit "climbing the ladder" within the time we would look to trade up. Hence, we wait and watch..and save our pennies...and our fifties.

    I am curious to see what seasoned investors make of some of the "deals" in my area. As a FHB with a business mind even i believe FOMO and irrational exuberance is driving some of these deals. I can understand the emotional attachment driving a PPR purchase in the current marker but to me they make no sense. Business or otherwise. Three examples:

    To me, an utterly crap investment for the buyer that seems to be an afterthought to the developer: Sold Price for 1/89 Purinuan Road Reservoir Vic 3073

    Location wise ok but difficult to develop and a risk in the current market with (still unsold) OTP apartments going up left right and centre: Sold Price for 25 Bent Street Northcote Vic 3070

    Insanity (for the area), unless you own the block next door: Sold Price for 53A Pender Street Thornbury Vic 3071. The park is nice though.

    What do you folk think? Could you turn a profit?
  2. The Y-man

    The Y-man Moderator Staff Member

    18th Jun, 2015
    Wouldn't go for any of those.

    Did look at this though:
    Sold Price for 26 Clements Grove Reservoir Vic 3073

    536 sqm, went to auction in August, passed in on vendor bid of $620k.
    Vendor wanted $640k+

    Stayed on market for long time, changed agent, went to auction again in Nov, passed in at $590k.....

    Just sold.... not sure what price but I suspect in the very low 6's.

    Granted it's not near the station, but has some buses etc.

    The Y-man