Gee Wealth you must be really crying buckets not seeing a CG. Uh yeah right. Nice work making around $40k in 6 mths!

D

Well done! Yeah I would just stay at that. Plenty more investment properties in the sea (or the country) If you do not get it don't worry as something better generally pops up and if you do get a call in a few weeks then you will be in the position of power. I've read a few  books and people put in stupid amounts of offers (like 100) to secure 1 or 2 properties for really cheap prices so I wouldn't worry about 1 offer! The other great thing is that it puts a number in the vendors mind. They can then sit for a couple weeks thinking that they would really like that amount of money

Keep it up, don't panic, remain confident!

D

Thanks Singer,

I'll remember the single price option for next time as it is very strong. Good comments on the RE, I think it does depend on what you are buying and where. It is hard to know what is genuine from them and what is a load. I think a mix of strategies when negotiating doesn't hurt and the ability to be flexible on something other than price really does take the focus off 'how much'.

D

Hey Christian,

Where abouts are you located?

D

Hi,

If it your first one use a company that has done plenty of them before. You will gain extra out of them that you don't really pay for such as call after call to slack council who don't get permits approved in a timely manner!

It really depends where you are and what you want done. If you are going to just split a backyard and sell it it may cost you around $20k. If you are doing a subdivision and want to build several units and want them to handle the project all the way up until you get the keys to the new houses then more like $50k. This doesn't include construction costs and you will still have other costs that spring up along the way as well as any holding costs if you already own the property or can't negotiate a long settlement. Better to always budget a higher figure than be stuck for money at the end.

Personally I would use a professional as they will save you time and money and councils have a tendency to try and waste both of it for you. I have heard of people just getting a draftsman and going through all the planning themselves but I'd leave that up to people who have plenty of time and who could cope with the run around.

Get prices of both and then check the councils website to see how detailed the subdivision process is. This may help with how much time you'll need to put into it.

Good luck it is great fun to do and watch being built.

D

The REA has to present all offers that are in writing. Badger them to get it in writing. Put in an end date and see what happens. Plenty of vendors will go with a bird in the hand don't be afraid to negotiate. Remember if you don't get it it is still good practice for next time. Don't let emotion get in your way (very hard when you are on the edge of your seat). If you can't do written and want to play phone tag have a crack at this

Start at odd numbers

eg.  I've had a look around at some other properties, this one seems to tick all the boxes so I would like to offer $262,500.

They come back with no pretty much straight away. This is where you pump the agent for information. What sort of offers is the vendor looking at. Will they accept offers under the $270 mark, would they prefer shorter settlement etc. You say, look I need to confer with husband, wife, accountant, bank manager etc, I'll call you back.

Wait a little while even if you are not conferring. maybe 1/2 hr 40 mins. Then call back, ok I can up my offer.I can offer   $264, 700 (for instance) but this should be with a bit more hesitation, maybe talk about other properties you have seen for less etc. Keep them hopping and guessing while u stay calm and confident.

They may take longer to come back, the longer the better. A couple hrs is great 20 mins is not. If they take longer they have really considered it and the next offer will pretty much get it. They may offer something else $269 for instance, you say ill call you back after talking to xyz, This is where you put in what you want to pay, if that is $267 for instance put it in. This is the best price which is up on your last offer but down on theirs. Hold your nerve. This will be the quickest and longest 10 mins of your life if you are accepted.

If there is a lot of competition on a property this is not going to be great and you will find that it is hard to even get a negotiation started because they have 10 people trying it on.  If the property has been on for a while and they are keen genuine vendors then all systems go. Don't go really hard but go hard enough so that everyone is happy and everyone feels like they got a good deal.

Enjoy hope this helped even a little!

D

Awww man, I PM'd you and emailed you!!!! Hahaha! I'll email you again but shhh my secret identity must be maintain HAHAH yeah right!

D

My apologies I missed QLD!

Yeah look I do dislike it but I'm so used to it now I'm kinda over it. I do hate inspections and the rigmarole of getting new leases signed and being at the mercy of other landlords geez those guys are jerks (hahah)!

Maybe we can find somewhere east-ish and closer in to the city. I also have small kids so week nites after 7pm are going to be better. Maybe if someone knows a good pub or rsl that has seats and good sound levels for chatting? I think weekends are going to be out for most people.

D