Some areas are monopolized. Although I have aproximately 7 agents to choose from in a smallish coastal region, all of them charge 9.9% and 1 week. No negotiation. It is a high rental area though.

Damn shame to think I’m loosing over $1200 every year for them to do nothing.

Damn.

Hi there,

Just look at real estate websites on your set area for general rents fo set number of beds and building type and cross reference to sales prices. Speak to the agents dirrectly also.

Also look closely at the Residex site and see how they do their property price predictions. No scientests are employed, they just look at a plotted graph and extend the line past the current month to predict the next few months. Many Buyers agents will tell you that it isn’t worth a cent and they don’t touch it.

You need to get out there. There are no shortcuts and you can not rely on figures.

Hi Big ben,

I have been in this same senario and would never look back on my decision.

I could not apply for a loan while having 50% share in a property I had. It gets complicated. The second property can tie up the entire equity of the first property stopping the other 50% owner from also applying for another. Effectively your greedy and stopping the other business partner from being able to draw a loan. Two loans will not be able to be drawn on the house in two names.

Consequently I bought out my partner at a certified eval amount and adjusted the rent since it had been neglected. Little did I know that 100% ownership would benifit my loan application by providing a larger cash flow and increasing my borrow capacity. It may not make sense but it’s the way banks work.

The more you own the better the banks see it. Just go for it.

All the best.

I’d be interested to hear what Steve McKnight thinks of the topic. I don’t recall any lengthy comments in his books.

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