Regretting buying property?!

Discussion in 'Investment Strategy' started by Amber83, 3rd Feb, 2016.

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  1. LCK

    LCK Active Member

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    If you keep it for 5+ years I'm sure it would increase in value..

    I went through this very same feeling when I brought my first.. Then I started to realise that if you loose 10 grand if you need to sell its not the end of the world.. Just got to learn from the experience and move on
     
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  2. Sackie

    Sackie Well-Known Member

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    Stop it with that dirty word already! :D
     
  3. Sackie

    Sackie Well-Known Member

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    If only that was consistently true....
     
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  4. datto

    datto Well-Known Member

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    Buying an IP is like getting married. Great to start off but after a few months you slap your forehead and cry "what have I done!".

    Polygamy is the answer. Have multiple IPs. The law of averages will work in your favour.

    Out of four or five spouses you're bound to hit the jackpot. The same applies to IPs. Make sense?
     
  5. barnes

    barnes Well-Known Member

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    I was a property investor for more then 20 years. And I had enough. I will sell my last IP this year, hopefully. The stress is not that big, but the market has changed. You don't get good capital gain anymore compared to what I have got used to.
    It's also getting harder to buy property without the help of financial institutions, which is sad also - because I never borrow.
    But on a bright side there are always other ways to make a living, as long as you don't put all your eggs into one basket.
     
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  6. Sackie

    Sackie Well-Known Member

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    @barnes what kind of investments in property could you do in the past that got you good CG, and you didn't need to borrow any money at all from the banks.... am I missing something mate?
     
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  7. Travelbug

    Travelbug Well-Known Member

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    I think your reaction is pretty typical, which is why over 90% of investors only have 1-2 properties.
    I bought my first IP in 1999. We still had a PPOR mortgage. Prices rose and there was talk of a crash and interest rates going to 12%. I had no one to talk to. I was losing sleep so decided to sell. Luckily it was in the boom so we made a profit. I was saying the same things as you (what if they move out, what if etc etc) even though we had wonderful tenants and it was all in my head.
    Fast forward 9 years and I had the courage to start again (but this time I was not letting anything stop me).
    This forum is a wonderful place to help alleviate fears. I just wish I had something like this back then. Use the expertise here. Mind sharing is a wonderful thing. Take advantage of it.
     
  8. barnes

    barnes Well-Known Member

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    You are not missing anything. I use my own money and nothing more. Good investments I have made overseas mostly in 90-s and a few in early 2000-s.
     
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  9. Sackie

    Sackie Well-Known Member

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    @barnes good on you mate. Great and interesting stuff.. I wish I knew how to make money without any leverage. But more power to you.
     
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  10. Inov8ive

    Inov8ive Well-Known Member

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    Whatever works is whats right for you but I have to disagree with the capital gains thing dude. I mean, have you missed the recent Sydney boom that has seen some of the biggest capital gains of all time??
     
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  11. barnes

    barnes Well-Known Member

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    Yes, I have missed it, because I didn't even follow it. And I don't call 15% yearly capital gain BIG. Big capital gain is when you buy for 17k off the plan and sell 7 years later for 85k, that is big capital gain. Those times are over and they are not coming back. Real estate has hit the ceiling almost everywhere around the world, because of cheap lending and the simplicity of the process.
     
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  12. Sackie

    Sackie Well-Known Member

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    @barnes well in the last 8 years alone, most of my properties have either doubled or tripled in growth. And that is not even counting manufactured profits I have made from renovations and development.

    If you want to count the return on equity alone, it would be massive,...like many hundreds of % return on equity (due to leveraging). Im not trying to brag but illustrate a point that there is still money to be made in real estate mate.

    I think its really important to stay objective in business and not let our emotions cloud the actual reality.
     
    Last edited: 5th Feb, 2016
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  13. 2FAST4U

    2FAST4U Well-Known Member

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    True. I’m currently contemplating purchasing a house that was last sold in 2008 for 40k higher than the current asking price. I like to purchase houses that have development potential and 3 bedrooms, but this house is only 2 bedrooms and on an average block that has no room for development. The only reason I’m even contemplating the purchase is because it is in one of my favourite locations, and the rental income would make it a neutral purchase. It’s a dogbox of a house though- only 87sqm.
     
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  14. Sackie

    Sackie Well-Known Member

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    @2FAST4U only 87sqm..??? Is it a house or unit mate...
     
  15. 2FAST4U

    2FAST4U Well-Known Member

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    It’s a freestanding Torrens Title house, but it’s pretty much the size of a duplex lol.
     
  16. Sackie

    Sackie Well-Known Member

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    Still quite tiny..but cool :)
     
  17. vvwvvwvwv

    vvwvvwvwv New Member

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    So a bit over 20 % yearly capital gain then
     
  18. See Change

    See Change Well-Known Member

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    Not necessarily true . There are many five year periods when markets have gone sideways . Timing is important . Brisbane , Adelaide and Tassie at the moment .


    Much harder if you only use your own money. Seems silly when it's so easy to use other peoples . Sounds like you have blinkers on .....

    There's plenty of opportunities out there if you're prepared to look .

    Cliff
     
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  19. barnes

    barnes Well-Known Member

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    Yep, so where can you find deals like that now? I'm not talking about renovating or developing. Just buy and hold.
     
  20. barnes

    barnes Well-Known Member

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    Much harder if you only use your own money. Seems silly when it's so easy to use other peoples . Sounds like you have blinkers on .....

    There's plenty of opportunities out there if you're prepared to look .

    I don't feel comfortable using other peoples money and it's not that easy, in my opinion lending should be very limited or the interest should be high.
     
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