Regulating the Property Industry - Brand new / OTP / H&L packages - People Being Burnt

I always rely on gossip around the office water fountain/coffee machine, whatever I overhear in the bus/train/pub/conga line and in depth conversations with my taxi driver (uber points to the lower end of the market as the well heeled don't Uber )

 

It's all about greed and keeping up with the Jones.

It's no different to the thread you posted a while back - it's about quality not quantity.

Buying OTP is not too different with all these investors buying up in Logan area - buying as many as quickly as possible. Some people have their DD, others not so much.

 

I think it would go a long way if the buyer would give serious consideration to:-

1. What am I buying?; and

2. Is the "consultant" that I am speaking to acting in my interest, his/her interest, or the sellers interest?

The answers to these questions would galvanise even a new property investor somewhat to the next part of the equation:-

1. Are the "helpers", that have been recommended to me by the "consultant" acting in my interest, their own interest, and/or the sellers interest?

The answers to these questions in every case should be at the very least illuminating...

 

Given my 5 minutes edit timeout expired, "helpers" could mean accountants, coneveyancers, hotel junket providers, and/or pest/building report suppliers recommended by the "consultant"...

 

Well ....the trouble is a lot of people are are too lazy to do some simple research like jumping on line to look at what properties are selling for.

The other problem is some investors are "just high" maintenance....they want everything spoon fed. I don't like OTP apartments generally ...but there can be exceptions.

As for H+L....I am making a killing on smaller lots .....if someone is charging you 200k over the established homes...then...these people are dumb and dumber.

Also the idea you cannot make money......on H+L packages is quite naive....most of the ones I am building...the land itself has gone up 50-70k.....also the cost of building has gone up 15-20k in just 18 months.

As always do you own due diligence....to see people buying in Logan ....also rings warning bells for me!

As for me I will stick to select newer suburbs....just on land I am making 50-70k on 125-144k land purchases. I will be building on these...and keeping these as the infrastructure planned over the next 5 years is huge.

Also in reference to traditional BAs....are you kidding me...some are charging 10-15k.....have seen some of these deals....very ordinary.

 

Sash, I'm interested to know if you are retaining any of these new builds every now and again as a rental?

Your post sounds like the party that hasn't yet reached 12 midnight.... (and good on you for your entrepreneurship, quite frankly...)

 

Yes everyone so far....and you are correct...the party is not over yet...was in Melbourne on Friday..and things are still going great guns. Can't see much of a slowdown till interest rates and/or the banks stop lending. Most of the money is from recent immigrants...they are queueing up on some suburbs.

 

I agree. I think a lot of people get sucked in by the marketing which all sounds like out makes sense financially

 

I once worked with a guy who wanted to buy a camera. He phoned about 10 different shops asking for prices and then went for the cheapest - probably saving $10.

A few months later he wanted to buy a business. When he found one he did no checking of anything and paid the asking price. About a year later he couldn't give the business away.

Similar with people buying cars - they will do revs checks and NRMA reports but the same people when buying a house won't want to do a building inspection.

Some people do weird things.

 

No need to go too far to see examples of people who do everything they can to avoid paying for highly qualifird and relevant advice that will directly impact how theyre investments worth 6 or 7 figures will perform, despite this vital advice iften costing less than 0.1% of the sum invested.

Or youll find people insuring their cars or phones or getting extended warranties on products but no travel insurance.

You cant legislate against the great australian tradition of making bad financial decisions but i do disagree with people pretending to act for one side when being remunerated by the other.

 

Yes quite a few.............tho have seen some good ones too who do thorough research and are willing to do the right thing by the buyer

 

Agreed. Though I believe that's because there is an assumption that Logan will do a Mount Druitt. It well may. Supply is much bigger than Mounty ever offered.

 

agree with you on H&L - just looking at the recent weekend sales in pt cook 400sqm for 590K, (single storey), 375sqm for 575K. that's really. go back 2+-3 years it was in the mid 300Kish then it stayed there and moved very slowly to 400K and now it is in the 500K. if that is the case, that would mean nearly 45% gain over 3 years from when I build in the 3 years ago. if it keeps going I will have to eat my words that a house in doncaster will outperform vs 3 houses in pt cook. h&L is about selections of houses and land.

 

Yes because you're not the average joe. Many have made quite poor decisions with H&L or OTP. Not speaking about a select few 0.01% who are on PC.

 

Maybe I am not a good example but i'm no magician either, and this is purely luck like many Sydney and Melbourne suburbs that have moved during the boom
A lot of people who bought in pt cook H&L still can see that what is the 400Kish last 1.5 years ago is now in 500Kish.

 

Yeh....people are buying those in Brissy.

 

Melbourne is still rock solid....agree about Point Cook...that is what is pushing up Hoppers and Werribee which are now looking like bargains...just up the road...

Lot of Sydney people buying in Brissie thinking the same thing will happen there as Sydney..not going to happen.....

 

have to say @sash you were right on the money with hoppers and werribee (when ppl were buying in logan following the herd with poor demographics, floods etc you stuck to your strategy) - i nearly sold my pt cook place for 440K close to 7-8 months but now i believe i can sell it for more than 530K.

Where's ur next build or purchase? i basically bought 2 places for 1.1 mil over the last few months - but i didn't contemplate even going to H&L.

 

Yeah...I hear ya....I kinda run my own race.....less competition... It is crazy what is happening in the North and West...I would not have believed it till I was on the ground.

Wow.....2 places for 1.1m noice.......where did you buy....

 

Haven't read the whole thread, but sites like these Welcome to Property Road - Property Road .
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