signs of people rushing into the market and they are now facing the consiquences?

Discussion in 'Property Market Economics' started by sumterrence, 13th Aug, 2015.

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  1. neK

    neK Well-Known Member

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    Need I really answer that? ;)
    Most of us can see it.
     
  2. sumterrence

    sumterrence Well-Known Member

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    last weekend while im having breakfast with my fiancée, I was saying how media can drive a dead town into a premium town as long as there are enough people put money in when the fundamentals are not there.

    For example "Auburn", for many many many years the property price in this area float at around the $150k - 200k mark until.......2013 property boom catch up, many PRs that live overseas wanted to catch the property ride but have no idea where to buy, and looking at the map and this area look close enough to the city and relatively cheap compare to surrounding suburbs like Strathfield & Lidcombe etc , plus a massive amount of OTP spruikers to promote, guest what, they have manually pushed the demand of this area when the prime fundamentals remain the same but you are now paying late $500s for a 2 bed unit.......and the demographics and economy hasn't changed either......

    So sometimes even when the fundamentals doesn't make sense to the very tiny populations of smart investors, it will be manually altered by the mass majority of populations even if they doesn't appear as smart as you.

    Who would have thought that people bought in these areas spending their life pre 2012 thinking they have made the worse decision ever by buying into these trouble areas with trouble tenants and high crime rate and absolutely 0% capital gains, turn them into now 2015 an investment guru by showing people how their property growth figures have out performed many other blue chips suburbs.....
     
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  3. MGF

    MGF Well-Known Member

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    I've seen some sales around my area that are out-of-town investors in streets you couldn't pay me to live in. Yet they're selling and renovating and then advertising with higher than normal rent and sometimes getting it... The demographic of the area hasn't changed yet but I can see if this process continues it might actually change because investors are physically changing the streets.
     
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  4. pugstar205

    pugstar205 Well-Known Member

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    No there’s not. But that property selling for $375k in March 2015 and other properties selling for more in August 2015 is not due to market uplift (as was being alluded in the original post). That property probably sold under the suburb median because of its proximity to a main road which would compromise demand.
     
  5. Phantom

    Phantom Well-Known Member

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    Yes I was alluding that the market has 'lifted' since March in Chermside. I think you'll find most investors in Brisbane would agree with that. I'm sure it was under median because of position. But my post had nothing to do with median. It had to do with the fact that since March prices have moved. Therefore, March sales do not reflect the current market. Put another way, do you think that same property can be purchased for 375k today?
     
  6. pugstar205

    pugstar205 Well-Known Member

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    Do you think that same property can be purchased for 375k today? Only one way to find out - advertise and sell it.

    I think it was a poor example, to attach a link to a cheap property on a main road and say 'look what you could buy in March, now everything is much more expensive in Chermside West '. No body is disputing the market is in an upswing, but there is an obvious reason why that property sold in the lower range.
     
  7. DaveM

    DaveM Well-Known Member

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    Because you flit from one suburb to the next at the drop of a hat, and generally base suggestions on heresay and dont really appear to know what you are doing?
     
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  8. Sackie

    Sackie Well-Known Member

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    It was a very quick look and post and I agree it was a poor example 100%. The thing I was trying to discuss was is it possible to buy closer than 30km for a decent price. 30km is quite far from the cbd for Brisbane.
     
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  9. Tekoz

    Tekoz Well-Known Member

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    Yeah, it is far but somehow there are some people still buying it.

    One example here is the new estate in Park Ridge, somehow it is famous for entry level investing due to low cost with further potential of becoming a great suburb in the future.

    There is Woolies and KMart opens I the area, surely they can't go wrong forecasting at the suburb potential for investing.
     
  10. Sackie

    Sackie Well-Known Member

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    Hi mate. Just be careful when you hear the term "entry level investment". It is sometimes used by marketers, REAs etc when trying to entice newbie investors to buy something that may be hard to sell to experienced investors, imo. Just be careful mate.
     
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  11. Phantom

    Phantom Well-Known Member

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    I agree. It was a bad example to post a link like that as Leo has admitted since then. But it wasn't me who posted the link. It was Leo. All I said was the market has moved since then. But yes, that particular example was poor.
     
  12. Sackie

    Sackie Well-Known Member

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    Guilty as charged.... :(
     
  13. Phantom

    Phantom Well-Known Member

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    No worries @Leo2413 . I understood what you meant from the original post. All good mate.
     
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  14. See Change

    See Change Well-Known Member

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    Who's saying they're smart investors ? Time and time again I have seen places with " bad fundamentals " boom . Most times when I have posted about these , some smart ..... Smart investor has pointed out the bad fundamentals .... I'll be interested to see who jumps up to ridicule my posts on where I've been buying recently when I post them ... But I may be wrong :)

    Hasn't stopped them from booming . Ok , there are some places I wouldn't buy eg Moree , but that still haven't stopped some people making money there .

    Auburn , bad rap , but it's between Strathfield and parramatta so it's well located on the main western train line so in terms of location and the potential to change its not that badly located ...

    Cliff
     
  15. Bran

    Bran Well-Known Member

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    Yes it has been, unless I spelt it wrong ;)
     
  16. Bran

    Bran Well-Known Member

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    Tekoz,

    I'm not the person to give advice, but if I were someone that was, I would advise that you do NOT invest in property for at least the short term. You need to take a back seat, listen, read and watch for a whole lot longer. I fear that if you ever put your money where your mouth is you will lose. (Ive done this, I would recommend you don't).
     
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  17. larrylarry

    larrylarry Well-Known Member

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    I think buying a property needs more than just looking at bunnings and maccas...they can get established early before anyone and has money to burn and they sell products. Where it's a new estate and no comparable sales and going by "I hope" without proper analysis, the investment decision becomes risky. Would have been better put your money in an established suburb even if it has higher entry costs.
     
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  18. Sackie

    Sackie Well-Known Member

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    I type it in the search and only our posts come up.....spelt "Durack"
     
  19. HUGH72

    HUGH72 Well-Known Member

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    And their not planning to live there either.
     
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  20. Bran

    Bran Well-Known Member

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    Yeah, weird. I do too, until I search a second time. @Simon Hampel ??
    I've taken a screen shot - "durack" has 11 results (but 2 or 3 the first time) Screen Shot 2015-08-26 at 8.26.48 pm.png