"Forget trying to make 20-30% in property over 1-2 years... Hold on for the long term 10-15years.."
Well I disagree...and agree with that statement.
With nearly every property I have ever bought......I gain 20-30% equity minimum day one.....not in 1 or 2 years.
if you wait 1-2 years to try to or hope to gain equity then u shouldn't be investing in property imo.
So now you say 10-15 years.......lol.......I understand where u are coming from, however I always make my "equity" day one or 4 weeks in if renos are required...After that I don't really worry too much to be honest.
Don't read newspapers would be my tip.
And another thing....if people are going to tip over as often as predicted then wouldnt there be more bargains out there not less??
believe me only 2-3% of the whole property market will tip......still leaves 95% plus who wont.
Media and stat books can say all they like......I bought a property and made 30% or so day one just a month ago.....even posted it on here
While everyone jumps for cover I'll keep doing what Ive always done...buy....renovate/touchup if required....20-30% equity day one or up to a month down the track...then rent out....hold, hold,hold.
Another example just this week....
I flew from Adelaide to G Coast to look at a place in Currumbin Waters Gold Coast last week.
3br house....median for area "houses" is about $425k......this "duplex" was advertised at $350,000....and elderly couple own it.
Now the "duplex" is not really a duplex as it doesnt actually share any common walls with next door......they touch only by a pergola/verandah.........easy to make it look like its its own free standing house.
So I said to the agent....damn I hate duplexes.....didnt realise it was one....I'll give you $309,000
.... and seem as how the owners are going into a nursing home in 6 months.......tell them I'll pay $309k settle in 30 days....unconditional...and rent it to them free for 6 months.
They have agreed......I'll sign the contract next week.
So first thing I'll do is remove the verandah which from day one will then look like a free standing house....which it is....and adds plenty to the value.
309000 10000......first 6 months repayments approx for my loan 10,000 or so s duty
So lets say it owes me $330,000 in 6 months time.
valuer has already been.....I bring one with me everytime...he said a quick paint.....remove the gastly verandah away from the other house........this property is then worth $385-$395k every day of the week.
385 330 costs
55k equity day one.
Ok.....only 16% return....but it shows that u can find good deals in any market.
a) dont buy crap...cheap is cheap for a reason b) find out why the seller is selling c) dont put in low offers unless it also has benefits to the seller d) If your first offer isnt accepted....walk away. e) make sure you gain 15-30% day one
