good properties still going fast

[terri]

so everywhere I read that the housing market is in a decline, prices have dropped, sales have dropped, so why is it that any property that I would want to buy is selling in 2 days or less? There have only been 2 properties that have come up on the mls in the last 2 months that perfectly fit my property profile and they both sold within 2 days of being on the market. One for close to asking (maybe 4% less than what it would have fetch at it`s peak) and the other I don`t know yet because it`s still conditional. What happened to those deals that I was expecting to see? I guess on the bright side it means that my properties are probably holding their value as well, but I was hoping to see some good deals, oh well.

 

[GSI]

QUOTE (terri @ Jan 18 2009, 04:13 PM) so everywhere I read that the housing market is in a decline, prices have dropped, sales have dropped, so why is it that any property that I would want to buy is selling in 2 days or less? There have only been 2 properties that have come up on the mls in the last 2 months that perfectly fit my property profile and they both sold within 2 days of being on the market. One for close to asking (maybe 4% less than what it would have fetch at it`s peak) and the other I don`t know yet because it`s still conditional. What happened to those deals that I was expecting to see? I guess on the bright side it means that my properties are probably holding their value as well, but I was hoping to see some good deals, oh well.

Hi Terri,

I`m not sure what market you are in, so that may be an influence. Generally though, not all the good deals hit the MLS - but there are certainly a ton out there (at least on the Edmonton board). I`d challenge you to look at properties that fit all your criteria, with the exception of the price being a little high, then write an offer with the price you need to make the deal work.

Also, consider combing through the FSBO, networking and telling your realtor exactly what works for you. There are definitly (medium/big) price reductions out there, not on everything, but on some. Even in an up market you`ll find hot deals, and you`ll find even more in a down market.

You need to reach the motivated sellers to strike a deal. Some folks in Edmonton have no interest in slashing prices (which is a very good thing in some ways) because they feel the market will improve.

Keep at it!

 

[Nir]

Hi Terri, I guess you`re looking for Plexes, right?

Plexes behave completely different than single family homes and condos. The reason is when you buy a Plex you buy from an investor like you.
When you buy single family homes and condos you buy from the average person who is scared to death if he does not sell today, he`s going to lose it all tomorrow and he looks like that

Do you have the same fears the average person owning his/her home/condo has today? I`m sure not. Therefore, Plexes is not a buyer`s market as much as single family/condos. There are less Plexes for sale proportionally and sellers are less worried. HOWEVER, no doubt even buying Plexes is still better than buying Plexes a year ago. Just not as much better as buying single family homes/condos.

Regards and good luck,
Neil

 

[invst4profit]

The problem may not be in the market it may be your "perfect property profile".
Confirm your analysis is correct and hold out or rethink your target property.
The fact that there were two means there are more.
This is a patience game that often requires moving very fast on the perfect property
because you are targeting the same as many other investors.
A top notch realtor is essential.

 

[terri]

Sorry, my rant was meant to be a bit tongue in cheek. I`m not really that upset that the properties that I buy haven`t really lost any value. I just think it`s ironic that in this "market meltdown" people are still jumping in and scooping up my target properties before I have a chance to even see them (lol). The first one I thought could have been a fluke, but the 2nd one is indication that these properties and the location are still very strong for now.
and yes Neil the properties that sold fast are triplexes, not real triplexes but houses that have been converted. but they weren`t purchased by invesors. I talked to the selling agent of one and it`s owner occupied with rental income, which means that home owners are still serious about buying but they want an income to help cover the expenses.

I`m definitely seeing sale prices in my area lower than what they were at their peak, but it is more pronounced in single family homes or investment properties on busy streets that won`t ever really attact the owner occupied market. The ones that are holding their value seem to be nice owner occupied with rental potential.

 

[invst4profit]

Toronto.
That is the only way new home buyers can get into the market and as they are not buying with a solid business sense they will be willing to pay more and will be difficult to compete with.
My guess within a few years many will be upside down on there mortgage and forced to sell at a loss.
Many will find landlording in Toronto to be a nightmare and want out but be unable to carry the mortgage without a tenant.

 

[terri]

QUOTE (invst4profit @ Jan 19 2009, 08:58 AM) Toronto.
That is the only way new home buyers can get into the market and as they are not buying with a solid business sense they will be willing to pay more and will be difficult to compete with.
My guess within a few years many will be upside down on there mortgage and forced to sell at a loss.
Many will find landlording in Toronto to be a nightmare and want out but be unable to carry the mortgage without a tenant.


landlording can be a daunting thing for some people, but financially they shold be okay, when I ran the #s, if they only put 5% down, they should be able to live there for what it would cost to rent.

they still paid more than what I would have wanted to pay, so I wouldn`t have ended up buying that particular property anyway, but the mistake that I made was underestimating the demand of the market.

 

[wgraham]

QUOTE (terri @ Jan 18 2009, 04:13 PM) so everywhere I read that the housing market is in a decline, prices have dropped, sales have dropped, so why is it that any property that I would want to buy is selling in 2 days or less? There have only been 2 properties that have come up on the mls in the last 2 months that perfectly fit my property profile and they both sold within 2 days of being on the market. One for close to asking (maybe 4% less than what it would have fetch at it`s peak) and the other I don`t know yet because it`s still conditional. What happened to those deals that I was expecting to see? I guess on the bright side it means that my properties are probably holding their value as well, but I was hoping to see some good deals, oh well.


I am with you Terri. I generally buy in the 325 to 375 range and I have seen a lot of crap in that range lately. They have been on the market for 90 days and they wonder why......but then I walk into the most amazing house I have ever seen in that range.....go to make an offer at full asking and it sold the hour before I walked in

so yes.....good properties move and quick!

good luck!
W

 

[terri]

QUOTE (wgraham @ Jan 19 2009, 11:00 AM) I am with you Terri. I generally buy in the 325 to 375 range and I have seen a lot of crap in that range lately. They have been on the market for 90 days and they wonder why......but then I walk into the most amazing house I have ever seen in that range.....go to make an offer at full asking and it sold the hour before I walked in

so yes.....good properties move and quick!

good luck!
W

where was that one?

 

[Nir]

Greg`s comment is in my opinion one of the most important to remember and act accordingly:

"This is a patience game that often requires moving very fast on the perfect property because you are targeting the same as many other investors."

From my short experience this was exactly the case with the properties I purchased as well as those I missed.

Cheers,
Neil

 

[housingrental]

I really really like this post
The valuations are so stretched for investors from pretty much every area even close to central neighborhood (lets say Dufferin to Woodbine, Lakeshore to steeles) (err even to Davis Drive..) that I`ve just been left wondering when does equilibrium come back.....

QUOTE (invst4profit @ Jan 19 2009, 10:58 AM) Toronto.
That is the only way new home buyers can get into the market and as they are not buying with a solid business sense they will be willing to pay more and will be difficult to compete with.
My guess within a few years many will be upside down on there mortgage and forced to sell at a loss.
Many will find landlording in Toronto to be a nightmare and want out but be unable to carry the mortgage without a tenant.