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Warnbro property

Discussion in 'Real Estate' started by simondema, 21st Dec, 2011.

  1. simondema

    simondema New Member

    Joined:
    29th May, 2011
    Posts:
    3
    Location:
    Sydney, nsw
    Hi all
    Back in 2007 I wrote about our purchase of a house in Warnbro, WA and its subsequent rental. A lot has happened since then, including currently going through the dreaded "divorce process". The property has now been put up for sale, and of course we will lose money on it. We started at $340K and as the market in the area deteriorated, we have now dropped it down to $319K. The agent decided (without consulting me) to drop the price to $299K (to attract buyers). I promptly told him to change the price back immediately. Although there are a large number of properties in the area for sale, sales are slowly picking up. It's a shame because it's a large block of land (700+sqm).
    Unfortunately marital break ups make for the best fire sales!
    Hope no one else finds themselves in the same situation, as it's heartbraking (for the property, that is :rolleyes:)
    Cheers

    Simon
     
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    It was near or at the peak then. After peak, it always recedes somewhat naturally for anything it could move. There are forces to push things up or down and their strength changes with the time.

    In 1994/5, at the bottom of property, no one wants to buy property but since then it bottoms out slowly and started the momentum at 2000 until 2007. No anything in the globe could grow up to the moon if the money supply and demand don't go up correspondingly.

    So if you buy for investment, you have to buy at bottom rather than at peak. If you buy for your home, it is always right if the price is affordable since you pay your rental for your roof anyway. All of us need the roof and it is ridiculous without your home house after you start to take senior pension. What's for a hard work life?

    It is not easy to buy at bottom. There are too many crying in the darkness. Men are clever to see what happens now but stupid to see what will happen in future. Future needs guts, luck, vision, persistent, and great protection. So Chinese said if you would be very rich you would be extremely lucky!

    Property is not a fancy TV. No one could make money to buy now and sell tomorrow. If you buy you have to be ready to hold it more than 10 years without matter you would lose or get more money in future. You simply don't know! However if you buy at the bottom you could know it would never drop down further. Could we buy at bottom? It is challenge for us too.
     
  3. MHJ

    MHJ New Member

    Joined:
    11th Jan, 2012
    Posts:
    1
    Location:
    Darwin
    Sounds like you bought at the highs and have to face the reality of a flagging market. Surrounding Perth suburbs have been falling at a staggering rate unlike their inner city counterparts.
    I would just get rid of it and move on.
     
  4. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Simon

    Sorry to hear of your predicament- divorces are never easy and you have my sympathy during this difficult time. Sadly, property is subject to cycles and it appears you're trying to sell during a down time in the current one. I sincerely wish you the best of luck moving forward :)
     
  5. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    How could we move forward? How could we move better than we expect at very beginning. In the road of the life there are always something broken. Before the broken things, we all tend to choose the easiest way, selling.

    Having a family it means responsibility and more money have to be spent. Becoming single again, it means you just have the duties for youself and your kids. If you don't have the kids to raise, should you think the possibility to pay half of equity to your wife in cash from your borrowing from the bank? Don't forget selling house is very expensive.

    Selling a house is easy if the price is low enough. Holding the house for the roof of your retirement when family is broken, need the money, determination, and carefully calculation about the service of mortgage. Don't forget if we don't pay for our own houses at last we could save very little.

    Seperation is a very emotional process and it is understandable we all want to sell and forget it as quickly as we can. Let yourself calm down and think about the best solution about the house if not the marriage. Don't hurry to make your decision for matter such as selling the house without matter what drive you to do so! We could not buy too many houses in our life if we are not extremely lucky!