Your worst IP purchase

Great post. Good information for others looking to buy in flood zone suburbs. I wasn't aware that flood zones can be adjusted. I can imagine the effect it would have on value when you buy it outside a flood zone then suddenly your property gets drafted into a newly adjusted zone. I'll stay well clear of that when I buy in Logan.

 

@York Polides, went to my most reliable source of financial information–family.

I didn't know what a broker was at that stage.

And obviously there was a lot of other stuff I didn't know either!

 

That's a bit painful, but I bet plenty of people wish they had close to 6.8% yields in some other places.

 

Well seems like you've learnt a considerable amount since then. Keep moving forward!!

 

@York Polides, indeed. In fact, that decision actually brought on a lot of learning in itself.

 

So what's wrong with Upper Coomera QLD 4209 region ? is it low socio economic or is it just not enough economic grwoth driver ?

I thought that it is the best palce to invest now while the price is still low and it is on the strategic location between Gold Coast and Brisbane.

 

Bought any?

 

What about you mate ?
have you recently ?

 

Yep. Settles on Friday.

 

Good thread.

Certainly some folks make some questionable decisions with respect to properties they invest in. Sometimes it is lack of understanding about the holding costs of the property. The big one is where there is too big a scope for market shift in the area.

The one people don't talk about so much is when people make decisions to invest in something that pretty much staples them to the wall. The slightest shift in circumstance can bring them undone. The property itself may have been fine. But a small period of vacancy, or a maintenance bill, or a change to household income, can bring people undone. I'm a huge advocate of the slushy fund. The "emergency money" that sits there to assist with riding out inconvenient times. Without it, when something small goes wrong, things can quickly escalate the need for a sudden and immediate fire sale of the property.

 

What's a good amount to aim for for a buffer? Obviously the more the better but do most have a specific m amount set aside for each IP depending on gearing/condition etc or is it more a pool of funds or savings in the offset that they can access just in case?

 

It depends on your situation @AlexH , for me it is 6 x past months expenses.

 

Hey Azazel that Rocky purchase doesn't sound disastrous. I've got a couple up there and think they will do ok long term. I don't expect massive growth but had one in gracemere for 10 years and it's gone up about 140k. Not great but better than a kick in the nuts.

 

Wasn't me Dan

 

Haha Azazel yeh that's what you get for skim reading! My bad

 

Even though ive had a rant on my not so great strategy fortunatrly none of mine have dropped like in the mining towns and are below my purchase price. So that is a positive for me.

So my worst ip purchsse isnt too bad in the grand scheme of things

Carry on

 

@Tekoz, Have you bought yet?

 

No dud as far as we know so far - the answer would have been different in 2012.

Purchase in North Ryde for $670K - did a reno and rented it out for $420 per week.

Negative geared at around $800 per week for 4 years.

Had another negative geared at around half of that for 7 years.

It soaked up a lot of cash.

 

I paid too much and there is heaps of land around for future developments. I would have been better buying a unit in Sydney at the same time.......I didn't know what I didn't know at the time. At least it was a good lesson though and. Is still positive cashflow.

 

@HUGH72 how did you know if it is slowly improved ? is it from the Median Property Price Trend Annual graph:
http://www.realestate.com.au/neighbourhoods/redbank plains-4301-qld