Where would you buy now and why?

Discussion in 'Where to Buy' started by Alex123711, 4th Apr, 2021.

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  1. Alex123711

    Alex123711 Well-Known Member

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    Seems like most places are overvalued at the moment, where would you buy at the moment? If at all?
     
  2. Trainee

    Trainee Well-Known Member

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    How much will you lose if prices go up another 30%?
     
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  3. boganfromlogan

    boganfromlogan Well-Known Member

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    I have no capacity to buy, had my last foray in the April timeframe (very interesting time to buy actually).

    I like the premise of the question bc i am still thinking in last years money, my poor brain can't compute the massive rises. Having said that i predict Logan will double (contradiction i know, but please indulge my passion for Logan).

    Here is an outlyer ...... Atherton tablelands. Cos its cheap and nice
     
  4. Trainee

    Trainee Well-Known Member

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    op, have you bought anything yet?
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    I’m thinking, homes in Guildford, Greystanes, Granville are still pretty undervalued (relatively speaking)? I don’t have the borrowing capacity for it though.
     
  6. Sackie

    Sackie Well-Known Member

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    Actively looking (just missed out on one) to buy a reno deal in Sydney around 2.3m mark. Specific stock and suburbs. Why? Undervalued and with reno of 250k will be over 3+mil in 2 years is my estimation.
     
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  7. virgo

    virgo Well-Known Member

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    Had a look and surprised you still can get a free standing house for less than a mil...wouldn't stay like that for long though i reckon:rolleyes:
     
  8. Harris

    Harris Well-Known Member

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    Most places are overvalued? No. "Seems like" only if you believe the sensationalist media headlines!

    Statistically speaking, they are not! Here is the reason:

    The net increase in resi stock as of end mar (nationally) is 6.5%! This is the most up to date and scientifically calculated data and used by many gov agencies and most major banks.

    That means, whilst 20% of housing stock (inner/ premium, bayside) might have gone up 30%, 30% of stock is likely up by a measly 10% and there is 50% stock which hasn't moved! If you purely go by statistical reasoning & common sense, then that is the reality.

    Which means, you can still pick millions of prop (houses, apartments, town houses, land) which are still sitting at c2017 prices! You are paying prices of 4 years ago!

    Where would I buy?

    If I was starting out, I would buy cheaper houses, outer metro on dual occ sites giving me around 4%-5% yield- plenty about and then lock in 1.9% rates for 4 years. I would look at Bris, Ade, & Per and then build a very decent portfolio with high yields.

    Once I had finished buying (over the next 2-4 months), I would sit down and develop a plan to add value to increase rents (potential hedge against increasing rates from 2025 onwards) & see where I can add a dwelling (granny flat/ second unit) without removing the exis house (plenty of them around). By that time, I have enough equity in them and rents have gone up and then back to pounding the streets looking to acquire more for my second round.

    If I had higher risk tolerance, I would splurge on period units in small buildings in inner syd and mel. They are still below 2017 peak and likely to move up as the price gap widens.
     
  9. Gockie

    Gockie Life is good ☺️ Premium Member

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    I think a lot of other areas get all the attention. I’m surprised these areas are still currently affordable! Can’t be long till they also go up though.
     
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  10. Alex123711

    Alex123711 Well-Known Member

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    Interesting, I'd definitely agree with Atherton, I've never really understood Logan though? there's not really a shortage or land nearer to/ in Brisbane?
     
  11. jaybean

    jaybean Well-Known Member

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    BCC is generally more expensive. It's a trade off.
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    I'm dumping more money into Comm prop trusts.

    The Y-man
     
  13. Omnidragon

    Omnidragon Well-Known Member

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    CBD freehold
    Hasnt run yet
     
  14. Alex123711

    Alex123711 Well-Known Member

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    What do you have to look for to find properties suitable for dual occupancy/ granny flat? Is it just the size?

    Is that for a unit or house?
     
  15. Lizzie

    Lizzie Well-Known Member

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    The council's, for the areas your looking at, would have online, LEP maps showing density allowance for the entire council area ... ie, minimum land size per dwelling/number of bedrooms.

    Corner blocks "can" permit even higher density. Get to know your council duty officer, for detailed information. Watch for easements
     
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  16. Kevbo

    Kevbo Well-Known Member

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    Houses in the Western Sydney or South West (if you have a bit more budget)?

    My guess is that the houses around the two areas will reach its “peak” in the next 12 months (after 10-15% aggregate growth) and then calm down a little - and the units within the distance of 20km from the Sydney CBD will experience a decent boom.
     
  17. kierank

    kierank Well-Known Member

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  18. Harris

    Harris Well-Known Member

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    Once you have narrowed down the suburb(s), google on 'dual occ minimum size' for that area and prior to putting an offer, double check with the council website or call the council. Speak with agents frequently and get a lot of intel around the local area/ sales/ dual occ sites. The ideal ones are those where the current dwelling is positioned in a way that will allow you to put a 2/ 3 bedder at the back. Those sites are ideal but they go quickly so organise your finances and be prepared to put an offer when the right opportunity comes.
     
    Last edited: 4th Apr, 2021
  19. Trainee

    Trainee Well-Known Member

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    The problem with being a bear and not owning anything is...... you can't afford to be wrong.
     
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  20. Alex123711

    Alex123711 Well-Known Member

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    What would be considered outer metro? Is that like 10km from the CBD? Also what would be considered period units would that be pre war units or something?