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  • Cash is King -

    Another interesting read


    Investors with cash are sitting in a good position right now.

    When markets are dominated by fear, the time is ripe for bargains. It’s just a matter of being able to spot them, deciding how much risk you are willing to take and having the courage to act.

    The opportunities in the markets have arisen largely from developments in fixed interest markets which have had a flow on effect into share markets.

    Simply put, nervousness about the quality of fixed interest investments has sent jitters right around the world, with investors retreating to high quality, low risk investments, leaving parts of the market strapped for cash, stripped of buyers and in some cases crumbling to dust.

    Prices of bonds and other fixed interest investments have fallen, and some new issues have been cancelled. The strange thing is that when retail goods are on sale at bargain prices, the buyers rush in, but not so when investment prices drop. The reason for that is how investors perceive risk.

    If you can buy a can of baked beans at half price, you know with certainty that even though it’s cheap, it’s still a can of baked beans.

    Buying investments cheap is a bit like buying a cheap can of baked beans with the label removed – when you get it home and open it, there might be lemons inside!

    Market confidence has taken a beating with the discovery of lemons – and the worst part is, they were selling in disguise at full price, not half price.
    Rest of Article is Here by our resident financial blogger

    Cheers,

    Donna
    SEARCH PropertyTalk, About PropertyTalk

    BusinessBlogs - the best business articles are found here

  • #2
    my friend just went to a mortgagee auction, crosslease house rent of $300 pw, bought under the hammer for $125,000, in close to Manurewa (not Otara)
    Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
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    • #3
      Well I'm currently sitting on a bucket load of cash and looking for the half price cans of baked beans.

      I've been emailing agents, knowing that they hate it, and telling them that their properties are too overpriced. And guess what, they've been replying.

      I personally believe that the current market conditions will be with us for several more years and properties will only start moving when vendors start to become a little more desperate than they presently are.

      I have the cash and am willing to rescue a desperate vendor.... any takers?

      Jane.

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      • #4
        Apparently not.
        All you're doing is attracting desperate agents.
        Meantime your bucket load of cash is losing value every day.

        Comment


        • #5
          mortgage broker stated:
          my friend just went to a mortgagee auction, crosslease house rent of $300 pw, bought under the hammer for $125,000, in close to Manurewa
          Wouldn't be, would it.
          6/25 Solveig Pl, Manurewa. Little tiny fibrelite box. Sold for $125,000.
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

          Comment


          • #6
            Originally posted by muppet View Post
            mortgage broker stated:


            Wouldn't be, would it.
            6/25 Solveig Pl, Manurewa. Little tiny fibrelite box. Sold for $125,000.
            That'll be it, I was at the auction. I looked up the address on Google maps. It's right next to the motorway crammed in on one section with I guess at least 6 others.

            It's in Randwick Park which is a totally crap area - I grew up in Manurewa and you wouldn't catch me walking around there at night. This is where the liquor shop guy got shot recently.

            I wouldn't have bought it for $20,000. Imagine the endless trouble you're going to have there. Just driving over there during the day could be quite initimidating.

            David
            Squadly dinky do!

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            • #7
              But it's cashflow positive David! :-)
              Last edited by outspoken; 25-09-2008, 01:30 PM. Reason: tongue in cheek

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              • #8
                Yes, OK and they are hard to find. So it's good in that respect.

                But boy would you have some hassles with this.

                In fact by the time you add in costs for maintenance, lost rent, tenant damage, management time etc. would it still be making you money?

                David
                Squadly dinky do!

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                • #9
                  Randwick Park

                  I've had two trades in Randwick Park and made good money from it. So would buy there again.

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                  • #10
                    Right, maybe I'm being overly pessimistic. Wouldn't be the first time, lol.

                    What is 'good money' from a trade like this? Can you and will you say?

                    David
                    Squadly dinky do!

                    Comment


                    • #11
                      Originally posted by Davo36 View Post
                      Right, maybe I'm being overly pessimistic. Wouldn't be the first time, lol.

                      What is 'good money' from a trade like this? Can you and will you say?

                      David
                      >$20,000 net per deal from a trade like this.

                      Comment


                      • #12
                        Originally posted by Bob Kane View Post
                        Apparently not.
                        All you're doing is attracting desperate agents.
                        Meantime your bucket load of cash is losing value every day.
                        But not as fast a property !

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