Your worst IP purchase

Discussion in 'Investor Stories & Showcase' started by meme plecko, 23rd Jul, 2015.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    It's called "first IP", "complete newbie", "slick salesman" (so slick he stole our $30k deposit)

    The Y-man
     
  2. Sackie

    Sackie Well-Known Member Premium Member

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    @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! :)
     
  3. The Y-man

    The Y-man Moderator Staff Member

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  4. Sackie

    Sackie Well-Known Member Premium Member

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  5. meme plecko

    meme plecko Well-Known Member

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    Tell us more the Y-man!
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    Another time, another thread ;)

    Teaser:
    Imagine........ Redraw (big) money from equity in properties. Use as collateral for margin loan. Buy up big. Also buy into structured products at 100% loan @ 10% per annum. Throw in a few trees while at it. Market goes bad - like real bad......

    The Y-man
     
  7. HUGH72

    HUGH72 Well-Known Member

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    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.
     
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  8. Sackie

    Sackie Well-Known Member Premium Member

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

    Sackie Well-Known Member Premium Member

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    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.
     
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  10. HUGH72

    HUGH72 Well-Known Member

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    I beg to differ, 3 years ago they could.
     
  11. Sackie

    Sackie Well-Known Member Premium Member

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    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?
     
  12. HUGH72

    HUGH72 Well-Known Member

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    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.
     
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  13. Sackie

    Sackie Well-Known Member Premium Member

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    @HUGH72 I agree with your above post mate.
     
  14. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    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.
     
  15. willair

    willair Well-Known Member Premium Member

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    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..
     
  16. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    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.
     
  17. Steven Ryan

    Steven Ryan Well-Known Member

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    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.
     
  18. willair

    willair Well-Known Member Premium Member

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    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..
     
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  19. spludgey

    spludgey Well-Known Member

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    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.
     
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  20. Phantom

    Phantom Well-Known Member Premium Member

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