Hey, hey, hey and happy Monday! Being a total property geek, one of the joys of my weekend is looking at the sale prices of local properties and how much they’ve come up. Bliss!
Though, occasionally, I stumble across ones that didn’t come up. Same suburbs but a dud result.
Why does that happen? There are a number of reason and this week I’ve decided to share my musings so that you can see why I keep saying, “you make your money when you buy, not when you sell” . In other words, if you make the mistake of buying a lemon then you will not make as much money as you could have. Take a look below and on my chart to see what I mean.
The Hanger On: A 57% rise in 10 years or an average of 5.7% an per annum is pretty healthy. They probably painted and spruced up the old lady for sale, but no major money would have been spent.
The Lemon: A 32% rise is not to be sniffed at but when you take into account that was over 15-years, or an average of 2% p/a, they could have bought better. The Hanger On had a similar purchase price but got a very different result.
The Flipper: A 69% return is a very good result on 𝟏 year and yes, YOU could do it but be meticulous with your figures. According to the real estate agent, the owners were builders so there were no labour costs and they certainly knew what they were doing. The “bones” they bought were top notch and as the renovation was within the footprint of the property i.e. there were no major add-ons, all they needed from council was a CDC or a complying development certificate as opposed to a full DA (development application). The perfect flip!
Do you know how to buy the perfect property? If not, would you like to learn?
It’s one of my uber passions which is why I’m launching my course in February so that you can learn to find the ideal property but also how to negotiate with the real estate agent on their level – whether at auction or in a private sale. Forget getting caught up in underquoting – there are tricks and tips to avoid that nightmare and so much more.
What subjects would you like covered in the course? I’d love to know. xx