VIC Unbelievable prices in inner west melbourne

Discussion in 'Property Analysis' started by Hodge, 30th Apr, 2017.

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  1. Hodge

    Hodge Well-Known Member

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    Went to an auction in inner west melbourne on Saturday. I decided to go as i have an investment property 5 doors down, very comparable house and land size. Apples for apples.

    Purchased mine at auction in 2013 for $582k. I believe this was market price.

    Property at auction sold yesterday for $1,295m.

    As happy as i am this makes me slightly nervous. Starting to believe we are due for a crash! This isn't normal !?
     
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  2. Xenia

    Xenia Well-Known Member

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    As long as you don't revalue yours at $1.2 mil and extend your debt you should be ok.

    Keep the growth as only increasing your lvr (for now) and I agree with you, Melb, Syd prices are overinflated and possibly due for a correction.
     
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  3. Hodge

    Hodge Well-Known Member

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    Totally agree with you regarding prices being over inflated. Don't get me wrong I'm happy with the result but also a worrying sign.
     
  4. Barny

    Barny Well-Known Member

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    Its crazy hey. What location hodge?
     
  5. dabbler

    dabbler Well-Known Member

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    Nice.....but agree, bit of a worry if you borrowed against all equity to buy more of the same
     
  6. Hodge

    Hodge Well-Known Member

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  7. Xenia

    Xenia Well-Known Member

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    Yes the result is awesome. Enjoy it Hodge
     
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  8. Hodge

    Hodge Well-Known Member

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    Agree. In a way it's good APRA have tightened things up to stop people getting into trouble.
     
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  9. bdizzle

    bdizzle Member

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    Spot on, a house in Airport West approximately 300sqm unrenovated went for 905k... o_O
     
  10. Otie

    Otie Well-Known Member

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    I can't see Altona going backwards.. maybe will just stop for a bit.
     
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  11. Kangabanga

    Kangabanga Well-Known Member

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    Ahpra is just delaying the inevitable, at most they may be helping some overextended investors.

    Banks can still grow lending at 10% per annum which is much more than our GDP or wages are growing , so they will continue to perpetuate high prices until a tipping point comes along.
     
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  12. hash_investor

    hash_investor Well-Known Member

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    Nah... You just came here to brag :p
     
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  13. MTR

    MTR Well-Known Member

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    You have doubled your money in 3 years, you have 2 choices sell and take the money and run, or access equity, a very nice problem to have
    Timing is everything
     
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  14. Hodge

    Hodge Well-Known Member

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    Love the suburb, if I sell i won't get back in.

    Can't access equity due to serviceability but probably wouldn't at this stage anyway.
     
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  15. Hodge

    Hodge Well-Known Member

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    Haha was waiting for this comment! Nothing to brag about it's all paper money. Could all go pear shaped tomorrow.
     
  16. Guest

    Guest Guest

    Why not sell and lock in the gain?

    [Edit] just read the rest of the thread... 'love the suburb'? Do you plan on living in the property at some point?
     
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  17. MTR

    MTR Well-Known Member

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    Does it have deve potential

    @Be Developer was practcally begging me to buy here but I ignored him, damn it

    Well done
     
  18. MTR

    MTR Well-Known Member

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    As BB said not if you sell
     
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  19. hash_investor

    hash_investor Well-Known Member

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    awww.. thats very humble of you :D

    money is all paper, what if you had all as hard cash and aussie dollar crashes to 50c tomorrow? Gina's fortune dropped to half when iron ore went down
     
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  20. MTR

    MTR Well-Known Member

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    RAMS lo doc but you are listening to the wrong people who are deliberately scaremongering and they know it........and they know who they are;)
     
    Last edited: 30th Apr, 2017