Who is Selling

Discussion in 'Property Market Economics' started by MTR, 16th Apr, 2020.

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  1. MTR

    MTR Well-Known Member

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    Some development projects are now making sense
     
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  2. C-mac

    C-mac Well-Known Member

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    ^^^^ I've not observed any values-decline in the Atlanta area at present. And if that does occur, it would likely be due to the main macro-economic reason for general values-decline that hundreds of cities around the world would be experiencing (I.e. covid impact hollowing out jobs..) and not so much race-riots which are omnipresent in the US at the moment in dozens of cities.
     
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  3. Omnidragon

    Omnidragon Well-Known Member

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    Too much transaction costs. 1% agent fees. 20-25% taxes (on the profits). The property then needs to fall a good 20% to break even once I consider the stamp duty of buying back in. If property crashed 30%, selling would only put you at 10% ahead. Worthwhile if it’s PPOR and you take a negative view. But too late now. Bear has romped in
     
  4. MTR

    MTR Well-Known Member

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    it really depends on what you do with the money/investet
     
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  5. Omnidragon

    Omnidragon Well-Known Member

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    That is true too. If you have a better use then diff story.
     
  6. Dean Collins

    Dean Collins Well-Known Member

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    Nope.
     
  7. DaveC

    DaveC Member

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    I’m putting one on the market next week.
    It’s the only single family home in the suburb so should go well.
    Canberra is still killing it.
     
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  8. MTR

    MTR Well-Known Member

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    Amazing, Canberra market been doing so well
     
  9. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Why...many, many public service jobs or private sector closely tied to the public sector with incomes relatively unscathed. I don't see too many threats in the same way as other sectors and parts of the country.
     
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  10. MTR

    MTR Well-Known Member

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    Right makes sense

    Oddly enough the Perth market is coming back strong. Rents are rising and stock is low
     
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  11. MTR

    MTR Well-Known Member

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    I have 5 houses under contract these are in US.

    The idea is to reduce exposure, I will not sell all as cashflow is much higher than OZ properties

    I am now going to funnel funds into Perth market, developing and buying properties. I think signs are now that this market is recovering and rents are rising

    I have always been a fan of following cycles
     
  12. Robbo80

    Robbo80 Well-Known Member

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    Think you are onto something here. A few of the hwis I work with also think the same but most have been holding since gfc.
     
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  13. MTR

    MTR Well-Known Member

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    I know I am, my niece just completed a development and all sold in first week above asking price 13km from Perth. Important to identify areas with good infrastructure

    Rents in Perth are rising while other eastern States are going south
     
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  14. Omnidragon

    Omnidragon Well-Known Member

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    My neighbour's been making offers on two of my sites, probably thinking we're distressed, to the extent he's now dropped a letter at my parents house.
     
  15. summer

    summer Active Member

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    and here I am hoping the Canberra market with decline a little or stagnate so I can buy my first home.

    Its gone even crazier since COVID with people paying ridiculous prices.
     
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  16. MTR

    MTR Well-Known Member

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    Canberra been well..... amazing
    All the best
     
  17. ellejay

    ellejay Well-Known Member

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    Just sold my second property this week. 3bed rental in Napier NZ. Bought 5 years ago for $210k NZD. Rented at $500pw. Decided I might sell it a fortnight ago, put a message on an investor page. Got 2 offers the same day. Sold and settled within 2 weeks for $405,000

    Atlanta rental sold last night. Bought for $60k USD cash. Rented at $900usd pm. Sold for $100k USD.

    Third one settles on Friday. Hastings NZ bought for $170k NZD 5 years ago. Rented for $380pw. Sold for $330k NZD (needs a full reno)

    Forth one settles in 10 days. Hastings NZ. Two unit block bought for $130k NZD each sold for $230k each. :D
     
    Last edited: 29th Jul, 2020
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  18. essendonfan

    essendonfan Well-Known Member

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    Congrats - whats the next move? Property, divest or sit on the sidelines
     
  19. ellejay

    ellejay Well-Known Member

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    Thanks! I've got a one into two subdivision here in NZ almost finished and one in Vic almost finished. Planning to continue with small to medium sized developments.

     
    Last edited: 29th Jul, 2020
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  20. DaveC

    DaveC Member

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    Tbh I will have sold 2 and bought 1 since covid and honestly the limited numbers being allowed through seems to have just pushed demand up.
    Our first place went 15k over asking
     
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