Discussion in 'Property Market Economics' started by Propin, 17th Apr, 2020.
Anyone plan on buying within the next 6 -12 months and why? Has Covid 19 affected your plans?
I am actively looking but not in a hurry. COVID gave me pause but I haven't really seen much spike in bargains, that's not very surprising considering Perth is coming off a low base. Only time will tell
There was a house on my street was asking $3.3m pre lockdown. Then after a drawn out virus-impacted campaign last week it stuck a sold sticker on, only to peel it back off this week. After, the agent called me and left a voicemail and said something about it being sold for $3.1m and I couldn't figure out what they were saying after (very long voicemail)... I'd imagine the $3.1m got reneged during cooling off as the house is for sale again.
I am still going ahead with a block of 1 beddie units purchase. Exchanging next week.The mitigating factors that made me decide to proceed despite all this Rona stuff is.
1. 60% is rented by LT tenants. Only 1 vacant at present (5%). About to be tenanted.
2. They are cheap to rent at $240pw so should hold up ok, as even welfare can easily cover this now.
3. No arrears or anyone asking for reductions as of last Friday. Would have heard by now?
4. Vendor giving us an allowance held in trust for LL insurance that we cannot get now. Will cover all units @ 6 weeks each. Valid for 6 months from settlement.
5. Got 25% off market price.
6. I can add another floor easily as double brick/steel structure and increase units by a third. Plenty of land to account for extra parking.
7. Current gross rental yield is 9.8%. After reno/development will be 11%. Plus CG of 50%.
8. Already strata titled.
8. Hard to replace this opportunity and I am playing the long,long,long game.
9. No leverage involved so even if some are hard to lease it is a much better and safer return than any other option I can see for the next 5 years.
Don't get me wrong. Had some sleepless nights second guessing the decision and wondering if I would get better deals down the track. But decided on balance the risk is worth it.
Fingers crossed. No regrets. I will continue to look for property that fits my needs and strategy through this period, but particularly focused on finding distressed stock if it comes available. Staying away from top end resi,retail and office though. A nice 10%+ yielding servo with a 15y+ lease in a major regional centre would be lovely or more mid range resi with development potential. Keeping my powder dry and I will be very,very fussy.
Sounds like a great investment! Well done!
Doesn’t sound like you can go wrong here!
Bought a 4 bed unit in Caringbah back at the start of Feb, just before SHTF. Sold the share portfolio to fund it at the very top so I missed the falls in Feb and March.
Vendors renting it back from me until September so that’s a positive too, at least I don’t have to worry about finding tenants until then.
It was priced quite attractively compared to 3-4 bed townhouses, and is great value as compared to 2-3 bed OTPs in the area that are renting on much lower yields.
Slight downside is the highish Strata at $1600 a quarter, but it’s still going to be massively positively geared both on gross cashflow and after depreciation benefits.
Settles in 4 weeks, going to hold it forever so I don’t mind if there is a bit of short term valuation noise.
I was planning to, but now I think it is unlikely as prices are not adjusting to the levels I believe they should be and where I think they will end up in c6-12 months. I would like to upsize, but if nothing reasonable comes along will just rent as have seen significant discounts in places we have been looking.
I am findings that while sentiment has dropped, agents and vendors as a whole not willing to discount too much off prices and fair enough as there are still buyers out there willing to pay. I am fairly bearish about where we are headed in the medium term and don't think this is all blowing over anytime soon, so do not want to jump in.
We are going to see alot of this
this ones around the corner from us and has been under offer for months, I bet it falls over.Watching
those cashed up ready to going could do very well
How many millions is that expected to go for? Lovely house, if a bit big and ornate for my tastes!
it was listed for $3M, dont know what the offer is. But buyer may walk and lose deposit, I wont be surprised
Novel bed positions
Dont like bedrooms??
I never went to any viewings, husband did his very nosey
I’ve seen quite a few Melbourne properties go under offer in the last month. People jumping in on discounts.
are you guys still going to auction??
yes online auctions but most is private sale
We are still actively looking in the Adelaide Hills region for PPOR. Although in no rush at present, not seeing any bargains. Anything quality is snapped up fairly quickly and not a heap on the market.
Sit and wait, hopefully winter sees some more opportunities.
And the suburbs I have been looking in Melbourne are still going strong with no negotiation offered
I just bought in Blacktown. Signed contract 2 weeks ago.
Price was down ~12% on February - and agent was spruiking it with a guide of 12-18% below it's previous market price.
When I made an offer 18% below (the bottom of their range) - it was promptly rejected.
Nonetheless, I knew there was big interest in the place (Large Land with Granny Flat) and was willing to pay the price - so I did
In the guesthouse? Haha yeah, I thought it was a little interesting!
Separate names with a comma.