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yeah your right there – I guess I will just have to be extremely careful when completing my due diligence – thankyou
hhmmmmmm ok thanks for that, I guess one positive thing in the light is that the they will not be complete for 2 years, which will give them time to rise in value – that is if the initial value is a fair price in terms of real time value
yeah he showed me his contract, he had just signed it that day – it wasnt something he had told everyone, I just asked him after the event
good point thanks, I will definatly take that on board. The agent who have sourced the deal have done their own evalutaiton as well
Thanks for your reply Marc,
In this case, the agents price for sourcing the property is set at a stand alone fee, so is seperate from the price you are paying. For the price you pay them, they provide you with a lot of the research i.e. current rental prices for the area, projected growth for the area, etc, etc – which is quite compreshensive. One thing I did like was the fact that the ‘salesmen’ was going to buy a couple of these apartments himself ( as I found out when I approached him after the seminar). Thank-you for your advice on ‘worst case’ senario, it is something that I must take heavily on board. While the apartment will be positive cashflow based on current price and current rental returns for the area, it will be coming up with the actual settlement costs that would be the hard thing, should I not be able to sell. I will certainly invest in doing my own extensive due diligence. I appreciate your help.
Regards tim
I was always under the impresion you could get a good deal buying off the plan – doesn’t look that way at all, I’ll definatly be steering clear of that idea. I’m actually situated in New Zealand (don’t be jealous) and am looking to buy probably in Christchurch but possibly Wellington. The Christchurch market is a lot more appealing. You can buy a solid three bedroom home for 250 doen there, where as in Wellington you would pay 400+ for a simlar property.
Great thanks for all of the advice, I will definatly have to throughly complete my DD on an apartment before being satisfied [thumbsupanim]
