Hi All.

Thanks for starting this post Plummer and sharing Derek.

This really boils down to the fact that in most councils have regulations covering rooming houses, (this is really the basis on which this property was being let) there are fire regulations etc for a REASON.

There still seems to be so many backyard operators trying to get away with cramming as many people in as they can, with no regard to tenant safety, and in this case it has been a tragic outcome. This unfortunate story also adds to the myth that all landlords are only out make as much money as they can, no matter the cost.

Seeing so many new users here, I'd say take a lesson people. This is the wrong way to do a rental property.

I hope they throw the book at the landlord….

Disgusted.

D

Hi all,

Typing on an iPad, excuse any oddities!

With the active topics I've noticed that they are not segregated like they once were  in topic order. They seem to be in a list of what was talked about last, while this is good for any new items, if you are interested in a particular subject say "help needed"  you have to look through pages of everything to get a complete picture. Not so handy…..

I love the new site, but I would love to have this function back as it made for much easier navigating. If it still exists can you let me know how to get there ?

iPad slow going!

btw the smilies (emoticons) I dislike intensely! Sorry gang I love pretty much everything else! 

Thanks again for letting us have our say!

Cheers

D

Wish I had been here for a decade – I might have learned wayyyy more than I have!!

Considering I read Steve's book in 2003, then didn't look at the website until about 6 years later – sigh.

And I think Richard, you would have helped probably everyone who is here

D

Ok,

So a another friend is buying too…. how many properties do they hold? Are they seeing value because they are knowledgeable or are they new to investing like yourself?

You asked a lot about whether you should get in due to family, you haven't told us the most important part – WHAT IS THE INCOME? (not shouting, just making a point).

I would invest with the man on the moon if he was going to guarantee me the return on my hard earned money that I require.

The main investigation you should be doing is – is there demand for what you are buying as far as renting and selling, what RENT will you be collecting while you own it? What is the yield of the property?

Try and buy a cash flow positive property first, then you will live to buy more. If you buy something that sucks money out of your pocket every week and you have a hard time making the payments, then you have a recipe for going broke.

Ask yourself, if it wasn't your friend, would you still buy it? if there wasn't the money incentive (30k) would you still be able to or want to buy it? If it wasnt your friend, would you still buy in Baccus..?

Lots of questions you need answers to.

D

Bad!

See how your solicitor goes, if you can get out with minimal outlay I would.

If you are stuck – maybe explore the option of negotiating some sort of joint ownership with the neighbor (bring wine and maybe cake) so that you have no issue with being kicked out of the access agreement. Maybe some cold hard cash will help them decide that you would be nice people to share road ownership with. If you don't own any of the road the neighbor can wear all the costs – maybe use that as leverage.

If you are even more stuck maybe negotiate with the seller to drop the price by what you estimate the access to cost eg $50k and hire a guy with a front loader to dig you a dirt track. If they really haven't legally disclosed everything, use that as leverage. The last thing they will want is for the sale to fall over a month from settlement.

I hope this works out for the best, let us know how you get on.

Cheers

D

Hey bit of friendly competition never hurt anyone! lol@JacM

And this forum is full of great people, that's why we all hang out here

D

Hi Richard,

Terry is right, go get some specialized advice (pay for it). If you are planning to develop and keep developing, you may need to register for GST, what if you do decide to retain some, you may need a different entity to hold those.. the list goes on.

Good luck, pay for some advice that is particular to your situation.

Cheers

D

Hi Clint, (and Bardon)

If you do have to sell, maybe auction it and pass it in, to negotiate after. We did this (not in the current market) and it worked well. The highest bid at auction was about $50k less than we got in the week after. One we put up for auction, it never got to auction it sold previous as the buyer didn't like auctions, and another one we passed in, and in the next week only got $5k more….. still not bad for a week of waiting. It's not for the faint hearted tho! We also staged (furniture etc) these properties and had fresh flowers etc at every open.

You're right about having to pay the agent extra, it feels like a bit of a waste when the agent pockets a bunch of cash he didn't really do much for, but it does give buyers an end date.

The other option you could use is sale by set date, set a 6-8 week timeframe and pick a date. This also puts the idea in peoples heads that it will sell.

I highly doubt if you decide to go the sale by negotiation route that the property will sit stagnant for too long….. it's Elwood.

Theres a buyer for everything……

Cheers

D

Lol Cheers JacM!

If I could be everywhere at once……

D

This is what Due Diligence is all about.

If you do your own research and you make sure the property suits your investing needs, then that's the end of it.

Good luck with it all Zahn

Cheers

D