Conjunctional arrangements:

Most Written Authorities allow the listing agent to enter into a sales agreement with a sub-agent, known as a conjunctional agent. In a conjunctional arrangement, another agent approaches your listing agent with an offer from a potential buyer. If the offer is accepted then the commission you have agreed to pay to your listing agent is divided between the two agents as they have agreed.

Conjunctional deals increase the prospects of sale but are not as attractive to agents because of the splitting of the agent’s commission. Nevertheless, agents are required by law to inform the seller of all written offers from potential buyers, even if it is through another agent. Remember that a listing agent and the conjuncting agent both act for you as the seller and, therefore, have certain obligations to you in selling your property.

a) best growth potential of the two

(depends on a ton of variables, but considering the potential billions of development going into Southport its not a bad choice but also the return on Morayfield is quite good)

b) comments on any risks with this strategy, recommendations on alternate strategies or other areas in SE Queensland to look into.

(as long as you afford to cover the related costs your on the right track)

Good afternoon Peter,

Your IP’s sound like they are quite expensive for the return on rent alone, have you looked into IP’s that cost e.g. 300k and return $350pw rent over your 820K that returns 650pw.

you could spread out your portfolio much wider as your proposing
Value of properties = 850k + 820k +750k of rough value = $2.45m
Loans 293k + 656k + 600k = 1.55m = 2.45m-1.55m

900k (yours) to your 1.55m of debt.

I think personally your better off looking at 2 properties that are 300-350k (most likely lower stamp duty dependent on state). or at least looking at more options than simply another basic IP purchase. possibly even non residential.

simpanteli

I have heard very similar feelings about the Sydney market, I was there two weeks ago to meet with my accountant and he has same feeling.

I live in the gold coast and am happy to give information about the market here as I study it frequently and currently have a property here as well as have worked for a real estate firm locally.

In my honest opinion though I think sticking to what you know and understand gives you a more well rounded view I think there are a lot of places closer to Sydney where the market is not as inflated (for lack of a better word).

Kind regards

Jaxon Avery