VIC Unbelievable prices in inner west melbourne

I would sell with that gain. Won't turn down 700k cash

 

700 sqm block so could easily fit 3 townhouses.

 

Nice

Property investing on steroids

 

I thought they tightened up on RAMS lo doc few months back? Either way i think it's time to pay down some debt.

 

Other than pay down some debt it would just be sitting in the bank doing nothing.

 

Its BS I am sourcing my third loan now with RAMS lo doc. Best product on market in terms of lo doc and you wont jump hoops

There has been so much incorrect information on this product on PC. I dont wish to be cynical but I cant help but think it is deliberate.

I will give you a contact number he is brilliant in melb if interested pm me

 

No plans to turn it into a ppor. Currently building a ppor.

 

And that's a problem why? I doubt prices are going to get much higher TBH - they are already pretty silly. Just keep it in the offset of the PPOR you're now building until you think of a plan. But my expectations are pretty modest compared to most on these forums

 

In that case seems crazy not to sell because you 'love the suburb'. Sell and invest where you will 'love the return'.

 

No signs of slowing down in the south east and bayside areas... I don't know if I should be happy or sad

 

Why sell when you don't have to or don't want to? Why not just keep sitting on a 700sqm nest egg that has the potential to be developed down the track?

Even if the market does pull back or come off, if you hold out long enough and can hold your position, real estate can be very forgiving (particularly in a Melbourne suburb like Altona or similar).

Agree @Hodge , there are a lot of crazy prices being paid at auctions, but that seems to be becoming the new "norm" in Melbourne. Not sure that is necessarily a good thing...

 

One line of thinking is buy at bottom, get your money at the top.

Another is that everything will come to a screeching halt and do an about face for a bit then flat for a long time.

The other is to sit on it.

I suppose it all depends on situation, how many you have, your age and how much time you have and your original plans vs the recent reg changes.

 

I guess it depends whether you think you can do better with the funds, after you've seen a 120%+ increase in the value of the property in 4 years...

There are probably a number of Sydney investors who held from the 2003 peak, who wish they'd sold and redeployed their capital instead of waiting the next half a decade or longer before prices surpassed the nominal price at which they'd purchased (depends on suburb of course).

 

Congrats.

Double your money in 4 years. Such a high price range and rapid increase in short time. Similar (or better ) than Sydney gains.

Why isn't there a Panic Setting in Melbourne post by members begs the question. Unbelievable!

 

I think this is a good comment... after a massive boom, Sydney did nothing 2003-2009. It might be a good idea to pull the money out in this scenario and lock in a gain to be absolutely honest. But of course, @Hodge will have a massive tax bill too if he did this.
(Congrats by the way)

This is not advice.

 

This is pretty heavy crystal ball stuff and only you will know what your risk appetite is but it doesn't hurt to model some scenarios to get a feel for what risk you'd be happy with
a. borrow against the gain and buy something else
b. sell, realise the gain and reduce debt to x
c. sell, realise the gain and buy 2 more things (probably not in Melb)
d. hold and do nothing

 

No panic in Melb, its still very hot amazing.

However, what I am now noticing is some of the blue chip inner city stuff is looking cheap compared to outer burbs. Interesting really, perhaps the inner city stuff has had a breather, not falling of course, but just good value compared to outer burbs.

I am doing nothing ..... sitting and watching, patience I have learnt is very important in this game

 

@MTR @Hodge

I think more unbelievable is that broadmeadows going for 575K that is crazy!

5 Oxley Court Broadmeadows Vic 3047 - House for Sale #125151702 - realestate.com.au

 

Pretty awkward block as well..

 

I would say you are mad not to access the equity ASAP. Get it while you can kind off thing and park it so you have access to cheap money when and if you need it. Fast forward 2-3 years and credit may be hard to access and you made the smart move and accessed it for future opportunities or just rainy day/safety/buffer money.

Debt is not bad its how you manage it that will determine the outcome.