Your worst IP purchase

@The Y-man Really sorry to hear that mate... it makes me so angry...that some low life would steal 30k in this manner.... I guess the good thing is you've moved way past that now and your doing really well!Good on you!

 

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love your sense of humour though!

 

Tell us more the Y-man!

 

I don't think it's even close to a bad deal but anyone who has bought in Sydney in the last few years are kidding themselves when they talk about bad deals.....
You could have bought the worst most over priced rubbish 3 years ago and still made good money. When the tide rises the sxxx floats up too.
Its only when a market turns after buying near the top are your decisions really important and can bite.

 

stop it im in pain just listening.......

 

Hi @HUGH72,

That's not really true mate. People who bought way overpriced rubbish (and believe me some did) would not have any gains now or worse, depending how rubbish they bought.

 

I beg to differ, 3 years ago they could.

 

So are you saying that if 3 years ago someone paid 750k for a 1bedroom unit that was really worth 600k, they would still have a great deal today?

 

No but the gains have been so strong mistakes are not as important. People over paying now are far more vulnerable, the short term future gains are unlikely to easily cover mistakes at this point in the market.
Talking about bad mistakes thats over paying or buying a dud near the top of the market.
Whether something gained 250k when others gained 500k isn't the same as losing money or no growth for 7-8 years, perspective is important here.

 

@HUGH72 I agree with your above post mate.

 

Mine was the first property I ever purchased - long before I began work in the property industry. I did as most people do and purchased close to where I lived because I thought I 'knew the market'.... I didn't know the market - I had (like most people) absolutely no idea what the key property market drivers were - even though I lived there... I simply knew the neighbourhood.

Knowing the neighbourhood and buying close to where you live more often than not doesn't make a good investment decision.

 

That depends on the area,and makes the properties very easy to self manage,anyone that did that 25 years ago in the inner southside of Brisbane would not agree with that statement al all..

 

I'm not a property manager - don't have the expertise, so the 'self manage' argument means nothing to me. Saving a couple of dollars (but wasting my precious time - when I could be spending time with the family, going on holidays etc) self managing just to invest locally isn't a good use of my capital or cash flow.

I'm not saying the property didn't go up in value but it was by far my worst investment property and I would have done A LOT better than investing locally - as would most people. In a country with 8 States, 550 Local Government Authorities and over 9.6 million properties, it is very unlikely the best investment property for us is in our back yard.

The 25 year argument is a fairly moot point because you will spend a lot of time trying to find a property in the country that hasn't gone up in value over that time.

 

Haven't purchased and duds yet, but man did I stuff up finance on my first every property (PPOR).

Can anyone say...15 year fixed at 8.09%?

That was an expensive decision. 3 years of inflated interest repayments above and beyond SVR + an eventual break fee of nearly $20k.

 

NO problem, every bbq I hear the same item just as the beer runs out anyone could have done the same but very few that I know did,plus I like mowing lawns working with my hands looking over what we control and sometimes the map does not correspond to the territory in inner Brisbane 5 klm;s from the cbd every small sleeper pockets has maybe 4-5 upmarket streets break that down to basic sqm's then break that down to zoning,then break it down again,and again then it becomes something very complicated..

 

I bought a house in Rockhampton three years ago for $225k, now worth just over $200k. And I've had to drop the rent around $50, so now it's only paying 6.8%.
I'm a bit annoyed about it, but considering how my other properties have fared, overall, I'm very happy with my portfolio.

 

Wow....15 years fixed at 8.09%? Why why why Steven? Seriously under what circumstances did you do this? How long ago?