Top five worst property investment ideas

Discussion in 'Investment Strategy' started by yuefu, 27th Aug, 2015.

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  1. Azazel

    Azazel Well-Known Member

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    I wouldn't argue with that, it's well laid out, plenty of green space, low crime. Close enough to the snow/coast/Sydney to visit.
    Gets a bit boring at some stage though.
     
    Azazel, 28th Aug, 2015
    #41
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  2. albanga

    albanga Well-Known Member

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    Just on the serviced apartments my old man owned one a number of years back in Merimbula. Turns out he was having troubling getting tenants which seemed odd. So he conducted an experiment, some friends went up to stay so he told them to request his unit but don't let the manager know they knew him.

    They stay and leave and then dads asks the manager if any tenants yet? Turns out still none! Manager was simply pocketing the money!
     
    albanga, 28th Aug, 2015
    #42
  3. Azazel

    Azazel Well-Known Member

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    Woah, that's dodgy. Did he follow it up with the authorities?
    Merimbula used to be a nice little spot too.
     
    Azazel, 28th Aug, 2015
    #43
  4. albanga

    albanga Well-Known Member

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    Not sure how far he pursued it. Manager could probably continue to lie and say it was a one off mistake.

    Yeah I have not been up since he sold it actually which is going back probably 20 years now.
    At that time it was amazing! I remember at the time the locals were fighting against a McDonalds being built, I have since heard its been very commercialised and lost a lot of its charm.
    So many fond memories of going to top fun, and dad had a good size boat we use to take-out, caught our first sharks out there.
     
    albanga, 28th Aug, 2015
    #44
  5. Azazel

    Azazel Well-Known Member

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    Haha, yeah the putt putt place was pretty cool when I was a little un.
     
    Azazel, 28th Aug, 2015
    #45
  6. Greyghost

    Greyghost Well-Known Member

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    Very!
    Still doesn't mean I would invest in it.
     
    Greyghost, 28th Aug, 2015
    #46
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  7. larrylarry

    larrylarry Well-Known Member

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    larrylarry, 31st Aug, 2015
    #47
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  8. Sackie

    Sackie Well-Known Member

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    Looking for development deals for Mark Rolton at Massland and then after all your hard work if the deal ever gets done, handing over the largest chunk of profit to Mark.
     
    Sackie, 31st Aug, 2015
    #48
  9. MTR

    MTR Well-Known Member

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    OTP apartments can work very well in a booming market, though you must sign off in the early stages of a boom cycle and flip prior to market changing.

    I know many who made a killing doing this, I think they were using insurance bonds? for 10% deposits.

    Same happened recently in Perth, my G/friend flipped one of these, made 20% on her return.

    Though get timing wrong, building delays and you could be stuffed, higher risk.

    Similar to what happened with investors who purchased OTP apartments using EOS armchair developments (thread on this), builder/project management company inexperienced, massive delays, which has now cost investors dearly as they have now missed the boat/booming market in Perth, now it's tanked and they are screwed

    My point is you can and people do make money but it's not for everyone

    mtr
     
    MTR, 1st Sep, 2015
    #49
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  10. JDP1

    JDP1 Well-Known Member

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    Worst investments :
    Anything outside of brisbane.

    (disclosure: I am heavily biased and shamelessly hyping. However I'm usually right). :)
     
    JDP1, 1st Sep, 2015
    #50
  11. sash

    sash Well-Known Member

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    Yes John Henry loves OTP.....;)
     
    sash, 2nd Sep, 2015
    #51
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  12. Azazel

    Azazel Well-Known Member

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    Yeah, people who know what they're doing might be able to make some money, but they can get stung too.
    Feel sorry for the people that just buy OTP whenever with no idea of the market or the time in the cycle for that area.
     
    Azazel, 2nd Sep, 2015
    #52
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  13. MTR

    MTR Well-Known Member

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    Totally agree.
    I know at least 3 investors that got stung, buying at peak. I don't buy stuff OTP, not that brave or clever.

    MTR:)
     
    MTR, 2nd Sep, 2015
    #53
  14. Azazel

    Azazel Well-Known Member

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    Me either, and would never recommend it to anyone.
    But they have to learn for themselves ;)
     
    Azazel, 2nd Sep, 2015
    #54
  15. Tekoz

    Tekoz Well-Known Member

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    How did they got stung @MTR ? Do they have to forfeit the deposit or just sold it under the purchase price ?
     
    Tekoz, 2nd Sep, 2015
    #55
  16. MTR

    MTR Well-Known Member

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    because they purchased at peak when the apartments were completed the bank values were way under sale price and they did not have the deposits to go ahead with the deals
     
    MTR, 2nd Sep, 2015
    #56
  17. sash

    sash Well-Known Member

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    Yep...about to happen in Sydney......
     
    sash, 2nd Sep, 2015
    #57
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  18. MRO

    MRO Well-Known Member

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    The purchaser will generally lose their deposit and be liable for re-sale costs plus and difference in their agreed sale price and the new sale price.
    Many mistakenly believe they can hand over the deposit and walk away, not always the case in WA anyway.
     
    MRO, 2nd Sep, 2015
    #58
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  19. Tekoz

    Tekoz Well-Known Member

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    @MRO Whoa.. FarOut.. :eek: OTP is more dangerous in WA than in NSW state.
     
    Tekoz, 2nd Sep, 2015
    #59
  20. Tekoz

    Tekoz Well-Known Member

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    @sash & @MTR just wondering mate, I'm trying not to be a d*ck here but... has it ever happened in Sydney or at least that you are aware of ?

    I've only seen some of the property auctioned under "Bank Possessed Mortgagee" in Epping by McGrath RE back then in 2012, the price was $450k for 2/1/1 unit.

    So I guess nobody would get a bargain when the purchaser cannot service the debt, it would go under the hammer to the highest bidder :cool:.
     
    Tekoz, 2nd Sep, 2015
    #60
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