SA Sight unseen buy in SA - Thanks D.T

Discussion in 'Where to Buy' started by devank, 26th Aug, 2015.

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  1. MTR

    MTR Well-Known Member

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    So I see APRA not causing you any pain, not the case for most investors today
     
  2. sash

    sash Well-Known Member

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    Pain for about 1 week...now I have new funder....have another 1.5-3m in kitty!
     
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  3. Nemo

    Nemo Well-Known Member

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    It's just one aspect. As I have mentioned previously, house I bought for $190k in May had a desktop valuation for $275k a few weeks ago. Spent $20k and 3 weeks on a Reno. Easiest money I've ever made. Desktop valuation doesn't actually even take into consideration my Reno, I just bought well under market value.
     
  4. MTR

    MTR Well-Known Member

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    My suggestion is buy under market value you are on a winning strategy, don't count on a market rise in the near future in SA.
    Sash has just started a thread on this subject, and a very interesting post by bullion.

    MTR
     
  5. Nemo

    Nemo Well-Known Member

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    Obviously sa isn't for you, but don't write it off for everyone. We all have different strategies, but at the end of the day we all want to make money.
     
  6. jim1964

    jim1964 1941

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    Killed a deal on me the pricks.
     
  7. MTR

    MTR Well-Known Member

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    The bustards, I am OK to date with developments, but I am worried moving forward after this. However, I am using out of the square stuff, lo docs, RAMS excellent product, and there are others. Don't give up:)
     
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  8. D.T.

    D.T. Specialist Property Manager Business Member

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    So back on the topic of searching in Adelaide before it got gate crashed...

    It's amazing how many Sydney people are looking in Adelaide. I get lots of Sydney inquiries, and the sales agents at opens i go to say they have lots offers from Sydney people. Not nearly as many Melbourne/Brisbane people.
     
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  9. devank

    devank Well-Known Member

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    As I started this thread may be I should give my personal reasons.

    This is what our IP portfolio looked like few weeks ago.
    NSW: 41% (2 IPs)
    WA : 31% (3 IPs)
    QLD: 22% (2 IPs)
    VIC: 7% (1 IP)
    SA : 0%

    Large portion of NSW is from a Western Sydney IP. We didn't think it would go much higher (& doesn't suit us any more) so we decided to sell and invest in other states using the profits. Now the question is where?
    QLD? We already have decent chunk there. Too many investors are already there. Too much competition now. May be one more.
    VIC? I'm so hopeless with this market. So far, I never got it right.
    SA? Few reasons.
    1. We had nothing here.
    2. SA seems to be falling behind other states. I believe in 'mean gravity' & equilibrium :)
    3. It might be a bit early but not much competition now. As much as we think we can predict the market, no one really knows what will happen in the near future.
    4. It has been steady growth in SA. Given our exposure to riskier WA & QLD, we thought SA might give us a good balance.
    5. D.T. staring a PM business also seem like an opportunity knocking the door. I'm all for leveraging skills and resources :)

    NSW? I'll be back :)
     
    Last edited: 2nd Sep, 2015
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  10. D.T.

    D.T. Specialist Property Manager Business Member

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    Decent enough reasons :)
     
  11. RetireRich101

    RetireRich101 Well-Known Member

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    Don't be shy @devank, the property you sold in Sydney can buy half a dozen Adelaide properties.
     
    Last edited: 2nd Sep, 2015
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  12. D.T.

    D.T. Specialist Property Manager Business Member

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    Rather than start a new thread, thought I'd add to this one some of the sales agent gripes I've had while doing these inspections

    Here's 2 examples this week alone

    1) no open time listed so call agent to arrange an inspection time, doesn't answer. At night when I get home I email him instead. I get an auto reply back straight away saying he only checks emails at 12pm and 4pm and only ever takes calls that are urgent. Perhaps he'd actually sell houses if he'd just talk to people.

    2) used the contact agent link on realestate.com.au to clarify details on a property. Someone (not the agent) replied back to my inquiry using a gmail address. If that wasn't strange enough, he goes on to tell me he's just signed up a tenant on a 2 year lease on the property (while it's on the market). For those that don't know, in SA you have to inherit the lease when buying a tenanted property so either a) he's trying to alienate owner occupiers from purchasing or b) he's planted a tenant that might not get a lease elsewhere. I asked whether the tenant was known to agency or owner (conflict of interest) but this question seemed to get skipped.

    So it actually puzzles me how some sales agents survive being how they act. This is good for all of us because we get good bargains this way. Even though I'm not a BA, I still want to ensure people's best interests are at heart, though.

    Luckily some of the other sales agents have been good to deal with.
     
    Last edited: 16th Oct, 2015
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  13. Joshwaaaa

    Joshwaaaa Well-Known Member

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    no.2 happened to use a few months back, eyeing off a new ppor which had been on the market for a while but we werent in a position to put an offer in straight away. By the time we got our stuff together, rang the agent tell him we would like to make an offer. His reply "Oh yeah, about that we just signed up tenants for a 12 month contract" So we gave up on that one, not for us at the weekly rent they were paying.

    As it turned out the agent had sold the tenants house previously but the new house they were ment to be buying fell through, so he tee'd this up for them while they searched for a new place to buy
     
  14. Nemo

    Nemo Well-Known Member

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    I can't think of any reasonable reason you would sign up a new tenant on a two year lease while you are trying to sell the place.

    Pretty much dismiss ppor buyers and investors aren't necessarily going to want to inherit an unknown tenant for two years.

    Perhaps the agent just doesn't want to sell it.
     
  15. D.T.

    D.T. Specialist Property Manager Business Member

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    2 of this weekend's Open Inspections were in the same suburb as each other. One had about 4 people turn up and the house will end up going under asking and the other was choc full of people could barely move.

    The stats might not show a heap of growth in Adelaide, but there's definitely money to be made by taking advantage of certain situations. I report on the info the agent says as well as include residex/pricefinder information, which further allows buyer to be armed in negotiating.
     
    Last edited: 18th Oct, 2015
  16. BKRinvesting

    BKRinvesting Well-Known Member

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    Sounds like he's been reading the 4hr work week (or similar).
     
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  17. D.T.

    D.T. Specialist Property Manager Business Member

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    Inspections have been going well. Have looked at various SA suburbs for people from Sydney, Melbourne, Canberra, Indonesia. High yield or development prospects seem to be the main targets.

    Got a note this morning from someone to say their offer was accepted. Been a few now, it feels similar to when I get my own offers accepted - warm and fuzzy :)
     
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  18. Gockie

    Gockie Life is good ☺️ Premium Member

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    Ta @D.T. ... good tip for anybody buying anywhere really (particularly when few offers are on the table!)
     
  19. Tranquilo

    Tranquilo Well-Known Member

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    Yep me too one day:)
     
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  20. D.T.

    D.T. Specialist Property Manager Business Member

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    Both of those are in now @MTR , are you next? :D
     
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