All Forum Posts by: Marisa R.

@Dean Letfus

Yes, agree to disagree

Certainly going to be some pain in Oz markets. 

We are now seeing interest only loans revert to interest and principal. Tack 40% on top of loan repayments. That is going to kill investors... ouch

Anyway back to topic I guess

Don’t you love the US markets

@Dean Letfus

I am an Australian investor and know this market intimately. Been investing and developing property in Sydney, Melb and Perth

I come from experience. 

What you have stated is correct in part but it is not the full picture

This downturn is all about APRA, this was the final nail in the coffin. Please google this.

For further information suggest you read threads from

Propertychat

@Dean Letfus

I am an Australian investor, also playing in US since 2011.  I know Australian market intimately. Been investing and developing property in Sydney, Melb and Perth for over 16 years.

The markets in Australia are cyclic correct and they boom at different times. In 2013 we had booming markets in Perth, Sydney and Melbourne, 2016 Tasmania. There are also various indicators that have driven various markets, for example Melbourne boomed due to immigration, similar to Sydney.

What you have stated is correct in part but this alone is not what killed the boom cycle today in particular Sydney and Melbourne markets, the largest in Australia.

I am 100% correct it is APRA that put the final nail in the coffin.  Lenders tightening criteria has significantly changed which in turn has put the brakes on lending. If you can not finance deals you can not buy. First Home Buyers (FHB) can not soak up the oversupply, and investors are now out of the markets. This with negative market sentiment has put the brakes on property markets around Australia 

Please read posts on this forum  to further understand what is happening in Australia today. 

https://www.propertychat.com.au/community/threads/how-apra-may-force-you-to-deleverage-your-portfolio.27958/#post-504037

@Hadar Orkibi

Call it a correction, bust cycle but its the beginning of the downturn in Australian property market, this is fact, and impacting on all States. It started around Dec 2016. 

Investors can not source finance, we are seeing more supply come to market. Markets are all about supply and demand, we now have oversupply

Its like catching a falling knife.  No one can predict how far it will fall, time will tell

All to their own,  I prefer to buy in rising markets, easiest way to make money

@Hadar Orkibi

The Australian property market downturn is Australia wide not just in Melbourne and Sydney

This is due to credit squeeze, google APRA

If you can not source finance more stock comes on the market, then there is oversupply, hence boom/bust cycle, what is haopening in Australia

Thanks @Corey Anderson

Appreciate the feedback from those on the ground

Good to hear.

Lots of talk regarding City etc. Detroit is going through massive change at the moment, its got to be a good thing.

Thanks @Sam Shueh

Wow, $25,000.

I property purchase was a foreclosure.

I think I picked up a pretty good deal in current market.

I have had a number of realtors view the property, the feedback has been very positive.

Location is excellent and this neighbourhood is hot, prices are moving.

I have also looked at comps and anywhere from $130,000-160,000 dependent on the size of house and the quality of rehab.

I have also had rental assessment come in at around $1100-1200 per month

I pretty much have now made up my mind to hold and rent this property. I believe in rising markets, appreciation is a given and expect capital growth to do its magic.

I believe some neighborhoods in Detroit are on the cusp of booming, have to be selective.

Thanks @Oliver Simmons for this advice.

Yes, am aware the City is rolling up this out for landlords. 

Be interesting to see how this impacts on this market. No holding back investors at the moment though, seems they are coming from everywhere ie out of state, foreign investors

There is no right or wrong.

For me however, Timing is everything, if the market is softening my approach is take the money and run, find another rising market.  Personally I don't pay too much attention on what the experts say, I am far more interested in watching inventory and this is a good indicator on whether there is more supply coming to market, if this is the case then you may see a softening of this market

Caveat, I no zip about Florida, but just my approach in general

Hi All

Nice thread

I have posted some of my deals on BP for those interested, sub $50,000.

Lots of good advice here.

Do I like this market? Do I believe there will be appreciation? Its already happening, but its dependent on what and where you invest.

I am loving Bagley at the moment, seems to be quite hot.

This market is a tough one, not impossible to make it work, but requires lots of homework and networking with good people on the ground.

Never under estimate how difficult it is to source a good property manager, key to success if you are an out of State investor.

Comps can be all over the place, therefore it is critical to understand what is selling and price on a micro level.

I think Detroit is a great market for investors and I believe its on the cusp of a rise, but as I mentioned before where and what you buy.  I don't believe its a passive investment, its not set and forget, you have to work it. Certainly what I have been doing. 

I know some investors will make it work and will make money.  All the best to everyone