VIC Yup, the Outer East sure is Hot Hot Hot!

http://www.heraldsun.com.au/leader/.../story-fnqsbpzr-1227470788403#social-comments

Crazy! Cannot wait to auction off my brand new 34sq house in Rowville in the coming months, hope it goes nuts as well lol

 

Don't you just love the negative comments at the end of such articles. Jealous much?

 

Which ones OC1?

 

Read them - so oozing with negativity/resentment. But in my opinion we need them @OC1. My friend/colleague where I used to work who also invests heavily in property used to tell me to shut up when others ask me how its all done. He said "Shut up, we need them to rent/buy our properties".

 

Got it, the actual comments people make.

Yeh they're the lazy people who sit at home and then criticise others for having a crack and doing well etc. "Tall poppy syndrome" is alive and well it our great nation that's for sure...

 

Maybe...okay they bought for $548k....stamps/legals 35k....sell costs about 20k....sold for $1.15m.

The 64k question is how much was spent on renos? Even with renos...they would have made a stellar profit. Buy at the wrong time and then try to turnover can be disaster timing is everything...sounds a lot easier than it looks.

 

Missed the boat

 

It's the ripple effect, nice.

 

There's always another one.

 

It's not necessarily too late if you can secure at right price. I know a number of investors that have purchased bargains in boom times, trick is networking/locating dud agent

MTR

 

Aint that the truth! Honestly. I have met my fair share of agents who completely threw their client under the bus in order to secure their commission sooner and/or they were just terrible at their job.

That's why I love property investing. To a large degree it has to do with human nature, emotions and knowledge. If you study how to systematically outwit your opponent, you can truly make significant deals, even in boom times, as you say @MTR. For me, most of the satisfaction is from the deal making.

 

Yep, problem is you can't use them to sell so it's ongoing search

1 bank value came in over $100k above purchase price
Vendors need to also take responsibility, why don't they know true market value?

 

@MTR Was that for something you bought and had revalued? If so, well done!!

To be honest I think there are a few reasons why vendors sometimes, or more than sometimes make silly decisions. 1. I think they rely too much on their agents advice, 2. often there are stressful reasons why they have to sell..emotions can run high and silly decisions are made, 3. I have personally seen some are just not bothered. Someone left them property in their will and they just want to sell, get their 'lotto' asap and be done with it.

Last year a friend of a friend sold her unit at least 70k under value simple because she liked the person who approached her from door knocking....Really nothing surprises me anymore.

 

I'm assuming your meaning the ripple from Glen Waverley and the likes? This was one of the reasons I bought in Scoresby. Median house price was around $550k where as Glen Waverley was just under $1mill and it is the next suburb along (although divided by a green strip). Was only a matter of time before cashed up buyers started looking towards alternatives like Wantirna South, Knoxfield, Scoresby etc. although market dynamics are very different which will keep prices under control unlike Glenny's ridiculous figures

 

After looking at the listing Id say atleast $150k would have been sunk into it if it was done by a builder

 

Hi Dan

Ripple effect further out Ringwood, Croydon are very hot.

Development site sold in Croydon for $1.3M, a couple months ago, properties are flying out the door and prices continuing to rise. I just sourced a deve site in Croydon, as a developer what I like about this area is the end values, townhouses selling high $500s mid $600K dependent on location, spec, size. Ticks many boxes, access to city etc. Lifestyle thing as well.

Areas you mentioned become out of reach and people start to look further out.

MTR

 

Ripple effect is not just towards one direction, Keysborough is really hot, Summerfield state is going like really crazy,
land was selling around $600-700/m2 two years ago and now asking price is $1100-1200m2 and no negotiation, and land selling now is not going to get the titles for at least another 12months.
One of my friend sold his 3 bedroom home there with a for a great profit within 1.5 years.

 

Yesterday I got back some really good valuations for 2 places we have in Heathmont. I always get some valuations done around July/Aug each year as our health check.

The 2 bedroom unit valuation is 17% higher on the low end than the valuation we got in July 2014.

The 3 bedroom house valuation is 22% higher on the low end than the val we got in July 2014.

I'm based OS and I knew things were hot, but not that good.

 

Go you beautiful thing...

 

Croydon must be liveable accessible land like Rowville. I went to Kilsyth the other day and it felt like they built the town on a lumpy pizza base.

Starting to think with places with Boronia and Ferntree Gully they put yeast in the ground to give their suburb that "corrugated" effect.