The one that got away...

Discussion in 'Investor Psychology & Mindset' started by Do Androids Dream, 10th Feb, 2017.

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  1. Do Androids Dream

    Do Androids Dream Well-Known Member

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    ... And I don't mean lovers :D

    What are some properties you regret not purchasing, or areas you completely underestimated and let go?

    I realise this is a pointless exercise because it's hindsight, but let's do it anyway, as some newbies like myself might learn a few lessons.

    The first one I let get away was a blue chip, 2 bedroom apartment in the inner east of Melbourne listed for $320, 000 in 2010. At the time, I had a nice deposit but I also wanted to enjoy my 20s and wanted to travel. I ended up deciding to travel instead. Now 2 bedroom apartments in the area are $600, 000. In hindsight, I could've tried to have achieved both goals instead. It cost me dearly and I still think about this property in conversation with other investors.

    An area that I completely underestimated was St Albans VIC in 2014. I had only visited the area a few times but couldn't really see it's potential and still perceived it to be 'unsafe'. Also, I wasn't impressed by its capital growth history. At the time, I could've easily picked up a free standing house if I stretched my budget a little further.

    Looking back, if an area has all the fundamentals, including jobs, a thriving community and a shopping area and railway, it's worth a proper analysis. More importantly, what I overlooked was where it was currently sitting in the property cycle given Melbourne's inner and outer east had already boomed. Next time, I'll keep more of an open mind and cast my eye further...

    And of course, there's ALL of Western Sydney :D

    I often think back to Margaret Lomas's quote about every suburb/property having "it's own particular time"; lining up those multiple drivers means that a property is more likely to rise when its time comes.

    Please share your 'ones that got away'... :)
     
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  2. Phase2

    Phase2 Well-Known Member

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    Had the opportunity to purchase in Marrickville about 5 years ago.. built PPOR in WA instead. :(
     
  3. Do Androids Dream

    Do Androids Dream Well-Known Member

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    Ouch... I bet it still hurts. My friend felt a largeish Newtown apartment in Sydney priced at 500k was too expensive a few years ago. She still thinks about that one.
     
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  4. Phase2

    Phase2 Well-Known Member

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    It only hurts if I think about it.. which funnily enough I was this morning. I'm usually pretty good at blocking out the bad stuff.
     
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  5. MTR

    MTR Material Girl Premium Member

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    We all have a story like this, I did jump into Melbourne and Sydney markets in 2012/13 boom times, my only regret was that I did not go crazy and buy more.

    Did the same in USA purchased 9 properties in 2011 did very well but if I knew what I knew now I should have purchased 18 while the Au$ was 1.10 in 2011. Now I am in again and here are other opportunities, just got to keep an eye on the ball I guess.

    Never too late, watch out for the next cycles.

    In fact is it too late for Melb??? what is booming now or continuing to boom, it does not have to be the buy and hold strategy, it could be a flip, it could be land and house package, it could be buying a townhouse off the plan which will be appreciating in the right area/suburb because this product is in high demand? or getting something under value, I understand hard to do in boom times, but its not impossible.
     
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  6. Do Androids Dream

    Do Androids Dream Well-Known Member

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    I agree MTR... just a pity I'm out of funds :( One of your quotes (up there with Margaret Lomas) I like the most is: 'Why not buy in a rising market, rather than hoping it will rise later on.

    Very wise words.
     
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  7. dabbler

    dabbler Well-Known Member

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    Not that long ago we were not thinking of holding many places at one time, we sold some really good places in Syd, would have been good to have been holding them, but at the same time letting go allowed some other things to happen & in practicality would have been awkward to hold all.
     
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  8. ORAC

    ORAC Well-Known Member

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    Coogee, NSW 2 br flat bought in the early 90s for $172k, sold 4 years later for $250k. Thought was a good flip when more than one's salary. Last sold in 2007 for $470k, but another similar one in same building sold for $825k in 2015. It's gotta hurt of what could have should have been. (BTW - the concept of equity redraw / refinancing was a foreign concept for me at the time and interest rate was around 10% - 8%).
     
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  9. dabbler

    dabbler Well-Known Member

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    Yes, no one knew rates would drop so much.
     
  10. kierank

    kierank Well-Known Member

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    In the early 1990's, we were going to buy around 10 Apartment in the Woodridge area. At that time, the sale price was aroung $70,000 and their replacement construction cost was $90,000 each.

    We were sitting in the REA's reception waiting to make our offers when a handyman walked in. He advised the lady at reception that he had been to a Unit (in one of the complexes that we were going to buy in) and told her that the tenants had done a runner, looked like they changed their motorbike oil in the lounge room without catching the oil, looked like they had sacrificed a cat in the kitchen as there was blood everywhere, ...

    The wife and I looked at each other, both turned a strong shade of pale and ran out the door quicker than Usain Bolt.

    A year later, I was in the area again and walked past a REA office window. They had Apartments for sale in the same complex for $140,000.

    Missed out on $700,000 capital gain in 12 months. Not a cheap lesson in property investment:) :).
     
  11. MTR

    MTR Material Girl Premium Member

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    Very wise words.[/QUOTE]
    interest rates have been massive driver in recent booms, amazing really.

    It will also be a massive shock when RBA starts lifting rates, buying is fun, but paying debt could hurt if investors have over extended.
     
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  12. Ted Varrick

    Ted Varrick Well-Known Member

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    It's hard to imagine what will happen when they go back up, but probably some are going to experience something that can only be described as biblical.
     
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  13. NHG

    NHG Well-Known Member

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    Several R3 sites in St Marys in 2012/13 at $400k. All worth over $1M now. I was too cashflow driven at the time.

    Biggest sting, went to an auction with $300k in mind.
    Only one other person showed up.
    Bid started at $260k. Other guy walked out.
    I got greedy and low balled, didn't buy.

    It was a development site for 8 units if memory serves me right. Probably wasn't but that's how I remeber it
     
  14. igor1234

    igor1234 Active Member

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    hmm new to this game, but we bought first IP end of 2013 in Alexandria (~ 2 min from Redfern station). it was rented out and in 2015 we sold it for a good profit. we didnt put a single $ into renovation and 0 days vacancy. i thought i made good deal, but offcourse now its ~ 100k more + we would have had a massive equity.
     
  15. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Doh! That's a keeper.
     
  16. dabbler

    dabbler Well-Known Member

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    I am the opposite, I think it was not bad to let it go, although prob 16 would have been better, so many units being built and this boom will not be driven by any more cuts in rates from banks.
     
  17. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    10k CBA Employees will be working in the area by 2020, I think it's an area that will always be popular.
     
  18. JDP1

    JDP1 Well-Known Member

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    7-8 years ago, I had thr option to buy a small house in Glen Waverley or an apartment in Mel southbank for thr same price...
    I chose the apartment...one of the highest opportunity cost decisions I have ever made.
    Still regretting it...
     
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  19. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Still, better than my colleague who sold a unit in Redfern before 2012....
     
  20. dabbler

    dabbler Well-Known Member

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    Yeah, will always be popular, but soon you would have to expect a long flat run and the reality of a possible pull back, so not the end of the world missing an extra year or so of CG.