Forum Replies Created
Aussierogue has a very good point. There are plenty of people in this situation. We are also renting ppor and if the agent asked as for more rent we would do exactly the same thing (if we were not already in the process of packing boxes).
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It may be nice to think that we can control the market, however, as individuals it is highly unlikely that we can influence the actions of large groups.
.Hi Sparticus,
As mini said before most agents will do the appraisal for nothing and be happy to do it (the ones worth their salt anyway).
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If the selling agent won’t let you into the property to make reasonable enquiries (including the appraisal) then their may be a reason.
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I don’t want to get to far off the track but sometimes the properties that are harder to get into are the best bargins. Other times they are just dogs.
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Good Luck.Hi,
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Bill has a valid point. When we first applied for finance in NZ in 2003 the bank pre approved 500k but told us they would not finance tokoroa at any LVR. At that time I did not even know where Tokoroa was and had not asked then to finance property there. Then again plenty of other people have bought there in the mean time and profited from it in terms of capital gains. Horses for courses.
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Good LuckHi Sparticus,
I have found a good question to ask is “do you have a tenant in mind that could move into this property this week at the x dollars you have just quoted with the property in the condition it is in.”
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That will give you an idea of how accurate the rental appraisal is.
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I had a situation once where I got a written rent appraisal from the selling agent. I purchased the property and then had a meeting with the rental property manager at that same office.
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The conversation was “sorry, i could not possibly find you a tenant for this property. I have no idea why you bought the place.” Scary times.
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It all turned out alright. I moved to another property manager and had it rented in a week $10 above the original price I was quoted.
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Shop around and interview as many as you can.
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Selecting the property manager is a very important part of the due diligence process. If you have a location in mind there is no reason why you can’t select the manager before you purchase.
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Ask them what is in demand in the market
and bring them along to have a look at the property that you are thinking about buying.
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Good LuckHi AceyDucey,
I think you have come on a bit strong about the services that mini offers. Have you ever dealt with her or purchased a property that they found for you.
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You may have some legitimate concerns about the way this industry is growing in the absence of regulation. However, does it really need to be regulated. People are buying houses where what you see is what you get. It is up to the buyer to do their due diliegence to their satisfaction before going through with the purchase.
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It’s great to have a strong opinion but to say “dodgy…….” is a bit strongKeep smiling
Hi Freedom5,
Sorry for the delay. I am not experienced in the melbourne market and have never brought a home there.
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You are one of the lucky ones because you have a history with the NZ market and all the local knowledge that comes with it. The sort of stuff you can’t find in reports and forums. (would like to pick your brain oneday about the South Island.)
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Are you sure how long you are going to stay in Aus? It may boil down to a lifestyle choice in the end. I imagine that you will be able to get a much better place in terms of living conditions renting than you could using the same cash to purchase ie bang for your buck. Long term it would probably be good to get into a major capital city market in Aus but there does not seem to be any great rush to jump in and buy at the moment.
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It may well be best to sit on the fence with an eye on both markets. Buy something below value when the chance arises.
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Good LuckVery good advice to check out the other rentals in your area. These properties are your competition.
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Make yours the best in its price range through some low cost value adds and then think about a rent rise. Just a thought.
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Good Luck.
.Hi Carlin
I find it very hard to believe that so many people are so close to not being able to keep up repayments, and when I suggested to him that surely a .5% increase wouldn’t make much difference to most people’s circumstances he assured me that a .5% increase would have the same impact as a 2-3% impact would have had 10 years ago, such is the household income to household debt ratio.I don’t know about believing agents. Probably not productive to go there. Its a personal judgement thing.
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Anyway, there is some merit in what you are saying but i’m not sure that it is the investors that have to worry. It may be those mums and dads that have just one or two negatively geared properties plus their principal.
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Just and example I know people that have outstanding debt on PPOR of over 500k. I suppose it is not that uncommon in Sydney. Except these people don’t earn mega wages they are just average wage earners with two incomes.
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Of course these home are now worth substantially more than they paid for them. Part of the trouble is that some of the debt is made up of equity draw downs to pay for new four wheel drives and holidays.
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I used two work with people like this. Great people but they could tell you exactly how many hours it was until pay day. If the pay was late then they would have to borrow money for lunch.
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So, I agree. There is a bit of pressure out there. I don’t want to be all doom and gloom though. Many people have made good use of the current and past low fixed rates and locked them in. I have some debt fixed for another 3.5 years and 5.95%. Many others would have done better than that when rates were at there lowest.
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I don’t pretend to know what proportion of households are in this situation (over extended) or how it will effect the overall economy. However, .5 percent will have a big impact in some areas.
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However, I tend to agree with AUSPROP. Dull times ahead and good times for skilled investors.
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Good Luck.
.Hi Nobleone,
Have you thought about selling one or two of these properties? The only reason I say this is that 45k is not really alot of cash/equity if it is spread out over a few homes.(you mention cross col in not preferred.) It might not be realistic or efficient to obtain small lines of credit over each home and then draw down.
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Depending on where you have invested in NZ you MAY have achieved enough equity to sell and use the capital to buy a few more.
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It’s difficult when the whole situation is not known.
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Perhaps there may be some merit in choosing the property that has the most potential to add value to and renovate it for sale ie (only if you are around to do it yourself otherwise the labour and material cost will probably be more than the gain).
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If you have been buying rapidly over the past year or so then there may even be properties in your portfolio that have not met your expections. If so they would be the prime candidates.
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The good thing is you have plenty of options.
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Good Luck.
