Hi Jellin, My property purchases were from 2004 to around 2007, in regional areas , my strategy was to buy low, add value through basic reno, nothing too expensive and hold, rents were $130 week when i bought they are now $225 to $285 week, stable but looking like continuing to rise in 6 to 12 mths. The points i'd like to make are ; there are more good deals around now than in the period i first bought , but you don't find them in a realestate window. I am currently buying again now.
Finance is now cheaper than back then, not necessarily easier to get but easier to make the numbers stack up. Sellers are more motivated to negotiate than back then,ie property is not the flavour of the month.
VALUES. 18 months ago i was due for my 3 year review triggering revaluations on my properties, i was worried that i would lose massive equity on revaluation. I was pleasantly surprised to find minimal drops in value and some had increased. The strategy is simple BUYLOW + ADD VALUE= INCREASED EQUITY
The deals are out there , but what i find even with friends of mine when i tell them what i do they either don't beleive me , or don't have a strategy before they start, and go and buy a already renoed property from a realestate window, because it's easier, therefore paying full retail for the property. OR what 90% of people do is talk about it and do NOTHING. So many people get sidetracked in property by the spruikers and Realestate Agents selling glamorous looking units and houses only to find in several years they are in negative equity territory and fallen values for years. They are trapped. Enough said happy to contribute my twenty cents worth if anyone is listening.
