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Should it be this hard ?

Discussion in 'Investor Psychology' started by Logan, 17th Aug, 2015.

  1. Logan

    Logan Well-Known Member

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    I think there was a thread on this recently but I can't seem to find it.

    I have been researching for nearly a year now and with many many false starts I am back down to zero investments. I have had other opportunities this year which I have taken and they have been very lucrative and achieved other goals but still no investments. I am also very well along paying down my Sydney PPOR. It seems that every investment deal I chase evaporates - I am trying too hard or have I just found 100 ways not to invest ?

    I feel that I am pushing the limits of a lot of professionals on my team chasing deals that don't eventuate but can't seem to move forward.
     
  2. KDP

    KDP Well-Known Member

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    What are the reasons for the deals not going ahead?
     
  3. jafeica

    jafeica Well-Known Member

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    Analysis paralysis?
     
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  4. skater

    skater Capitalist Premium Member

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    My thoughts as well. Sometimes it's hard to make that first purchase and newbies will often try to score the 'deal of the century' while missing many other deals that could have been almost as good. At some point you have to work out that 'good enough' will do.

    A rising tide will lift all boats. By that I don't mean just buy the first crap hole that you see, but if you don't buy ANYTHING you don't get the growth (if we're talking about a rising market).

    For instance, we bought several in Western Sydney several years ago now. Were they perfect? NO! But they were perfect for us and the price was right. Over the years we've fixed some of them up, but we've still got one in it's original condition with a long term tenant. One of them we paid $186250 for, and sold it recently for $490k.

    Are we happy with that? Well, yes, of course we are, but the point that I'm trying to make is that if we'd spent too much time thinking about it, we would never have bought it.
     
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  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Yeah, can you provide some details so maybe the issue can be found.
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I bet you think they are perfect now :D
     
  7. skater

    skater Capitalist Premium Member

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    Hehe, yep!

    The one we've got that's still in original condition is pretty bad. There were tenants lined up for it when we bought it & it's been tenanted ever since. It's getting $360pw which is at the high end for a Wilmot place! It needs new kitchen bathroom, paint floor covering (the works) but the tenant is happy to stay and we've been too busy to do the reno....still are actually. It will get done eventually!:D

    When we get around to it, it will get a granny flat (nice boost to the cashflow) and as it's got two street frontages it should come up a treat.
     
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  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    That's Awesome well done. I guessing if you did the full reno it would boost the value? I think you purchased at the perfect time too! Like you, we bought a couple in Western Sydney about 3 years ago - there were hardly any buyers around! 2 of ours has CF ability but we are just hesitant to spend the money on GF and rather put it in more growth assets but your right with the GF it will give you a very nice yield. I have heard conflicting opinions on just how much the GF will add value to the home. Any ideas? Well done again!
     
  9. skater

    skater Capitalist Premium Member

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    I'm not looking for a value add on that place. We picked that one up for $185k, so it's growth has been great but I'm chasing cashflow at the moment. We planned to put a GF on there years ago, but put the funds into new purchases.
     
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  10. Logan

    Logan Well-Known Member

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    Thanks for the suggestions. They have fallen over on building and pest (strutural), under contract on the first day, under contract before I can get there or they really do have a better offer (I am not low balling) so they reject my contract (after stringing me along for a week).

    I have not had problems buying in Sydney, the last house I bought after a 10 minute inspection and a 5 minute glance of the building and pest report but I have lived in all of the houses and renovated as I went along.

    the upside is that I must be looking in the right areas if they are going so quickly.
     
  11. ellejay

    ellejay Well-Known Member

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    Well not necessarily if you're falling into the 'fear of missing out' trap and buying at the top of the market when there may be markets elsewhere where you could buy cheaper.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Either the professionals you're dealing with are holding up the process, or you're holding up the process. Take a good look at both and then do something about it.
     
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  13. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Sounds like your just not competitive enough in the market. I think if your looking at places that have THAT much interest it's probably a good thing you didn't get it tbh. I think you may be doing the right thing at the wrong time.

    I would be looking to change markets as @ellejay suggested, and making sure no one is slowing down your action including yourself.
     
    Last edited: 18th Aug, 2015
  14. MTR

    MTR Well-Known Member Premium Member

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    :p:eek::eek:
    Where are you looking:D, more competition.
    Just keep working it, persistence is the key:)
     
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  15. The Y-man

    The Y-man Moderator Staff Member

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    Maybe you're not - in my books, that's a market that's too hot. Go to the cool one.

    The Y-man
     
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  16. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi Logan

    Why?? Perhaps a bit of upskilling is in order to be able to identify big ticket item problems with properties and just not place them under contract in the first place. Building and pest inspections are not free and you don't want to be paying to expect houses that aren't going to fly.

    So you either need to be shopping in areas that you CAN get to quickly, or have someone going into bat for you that is able to attend immediately. Such a person should also be able to recognise the big problems with properties on your behalf as mentioned above.

    So don't give them a week. Your legal rep should be able to advise you on how to ensure they must make a decision in a shorter timeframe than that.

    Sometimes leveraging others takes you farther faster than you could go yourself, and along the way you can learn from these people. Might be worth pondering.
     
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  17. Logan

    Logan Well-Known Member

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    Thought I would give a bit of an update for those following at home. I did a bit of a step back and set much firmer criteria for houses I was chasing. Almost immediately I had two houses under contract including one that has just gone unconditional. It looks like the persistence has paid off. I think I also had to be a bit more realistic with price as Brisbane is now moving so fast. I am excited about moving forward into the settlement phase (I am sure I will have 100 questions) and now searching for my last two purchases for the year. Thanks for the support
     
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  18. KLH

    KLH Member

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    That's great! Which suburb in Brisbane did you buy?