You may need to consider other securities, if any, that may be cross collaterlised with the IP you are intending to sell as bank will do vals on them.

If the vals dont come back as expected you may be forced to reduce loan amounts on any related securities. This is usually discovered at settlement and can hold up the process. If no other properties involved then should be ok.

• This reply was modified 8 years, 2 months ago by  Colin Rice.

Why do we need all these levels of government?

I heard a stat the other day the that 70-90% of revenue collected is used to administrate government (buildings, wages, cars, pensions etc.) so only 10-30% is used for its intended purpose being roads, hospitals, education, law enforcement etc.

Time we all revolted and self governed!

Just HOW does one accurately gauge Max Pessimism – except in hindsight?

I dont think many can pick it exactly outside of luck but the signs are easily spotted.

Yep, sounds like the owner has taken the law into their own hands and built a house with pool with no approvals in place as an owner builder.

Get a building and pest inspection done to see what the quality of the work is like and whether it will have a chance of passing council approval?

Also ask agent how long the property has been on the market? If an extended period then likely others have looked and bailed for a reason.

Could be a demolition job otherwise and you dont want to find this out post settlement!!!

• This reply was modified 8 years, 2 months ago by  Colin Rice.

Welcome Abigail :)

hrjmck wrote:

Hi,
Do these meetings still run?

Not sure if they do but I attend a couple of different groups and can keep you in the loop if you like?

1. Do you think Templeton’s quote should be applied to the Australian property market in general? Why or why not?

Im hoping so as currently in acquisition phase.

2. Are there any cities in Australia where you think property market optimism is at a peak?

Sydney – at peak or close to

Melbourne – at peak or close to

Brisbane – a little ways to go for peak

Adelaide – approaching peak

Perth – declining market (my current hunting ground)

Darwin – Decline

Hobart – dunno :)

3. Are there any cities in Australia where you believe market pessimism is at a maximum?

Perth.

A similar quote by warren Buffet;

“Be scared when others are greedy and greedy when others are scared” – Warren Buffett

• This reply was modified 8 years, 2 months ago by  Colin Rice.
• This reply was modified 8 years, 2 months ago by  Colin Rice.

I’ve heard a few brokers mention that a lot of the bank valuations for purchases in this area are not stacking up against purchase price.

If the sellers are willing to give you a copy of the contract (unsigned) you can get an “as if complete” valuation done upfront via a broker.

You can always request a copy and say you are getting your lawyer to review first before signing. This is something you should do anyway. I have had things ammended and removed upon advice from my gun property lawyer using this common sense yet under utilised practice.

Profits on renos are generally around the 20% mark if successful. Have you crunched numbers to see if it is profitable before proceeding with structures and the associated time and costs involved?

Im with AFG and reasonably happy with them.

Did look at Connective but was going out on my own at the time so gave it a rain-check as it was to disruptive to my business at the time. I do like their flat fee model and wondering when, if ever AFG will offer something similar in order to remain competitive.

All the best.