Comments on: Why Big Price Discounts Don’t Always Make Great Deals

By: amiller

amiller — Tue, 13 Aug 2019 00:54:29 +0000

I bought a duplex property for $115k in 2015. I knew it had some issues to repair, but wildly underestimated the cost and time involved. There were a bunch of issues from council, electrical inspectors and power company. There are still a bunch of repairs to be done but we are working through it.
Sometimes a bad deal can turn into a good one with work and persistence.

By: Jaxon

Jaxon — Mon, 26 Jun 2017 13:45:43 +0000

Steven great post,

I also think one simular to this that I would really love to read on here would be

“Purchases dos and donts, what due dilligence can discover”

A big breakdown of some of the best/worst choices that are regular, I feel that post would be incredibly useful to a lot of people on here.

By: Steve McKnight

Steve McKnight — Thu, 22 Jun 2017 00:17:03 +0000

That’s a very brave post Jura. Thanks for being courageous and making it.

There might be some more downwards pressure on GC property prices once the 2017 budget changes start to bite.

What is it worth now, do you think?

– Steve

By: Steve McKnight

Steve McKnight — Thu, 22 Jun 2017 00:15:18 +0000

Oh! Sounds like you dodged a dud Gladys. Thanks for sharing.

– Steve

By: Steve McKnight

Steve McKnight — Thu, 22 Jun 2017 00:14:46 +0000

Thanks Tim. Good to hear from you. You make a good point that sometimes there is a reason for the discount, and that further price decline might be on the cards.

– Steve

By: Jura

Jura — Wed, 21 Jun 2017 23:56:30 +0000

Thanks Steve…..I wish I knew about this 12 years ago…..I bought a 1 bedroom at the GC from a reputable property club. The researchers were spruiking many areas of the GC as the next upcoming area and there was so much hype at the time. How I now regret it! It has been costing me a fair bit every year to maintain it, especially when interest rates were higher. It’s been a constant source of a headache and I’m not able to sell it even at a tiny profit. So you can only imagine my despair.

By: Gladys Gomez

Gladys Gomez — Wed, 21 Jun 2017 11:29:23 +0000

Hi Steve

Thank you and It is good to have access to all this website. Thanks.

Yes, as I look for great deals, I prefer deals at a discount for more profit….

In the past I had an owner that contact me about his house on a nice big block of land good to subdivided into 2.
The owner wanted to sell because the land was too big for him to maintain. He was very, very flexible too.

He gave me basic details and the prices he wanted for it.

I knew about the area.

The owner gave me the price he wanted for it and I got kind of exited because it sound like it was what I was looking for…

I did more researches in a feaso and it still was looking good..

Then after I look for even further due diligence and it was very shocking that the usable land at the back was so small to do anything .
I found out that :

“part of the land and the back was cover with wetland overlay and would not be possible to develop on that side.”

So, it was a big lesson by doing due diligence because if I would have just given some deposit to secure it, I probably would have lost the deposit +

Thanks

By: Tim Lord

Tim Lord — Wed, 21 Jun 2017 04:26:34 +0000

Thanks Steve. Short. Simple and yet full of wisdom.

Also realise that discounts can mean that a investment property is in a suburb or area undergoing a general market downturn. And that you could be buying it with further price falls still to come. Which re-iterates your comments about “you MUST do thorough and FULL due dilligence”.