Forum Replies Created
I heard that if you put in an offer before auction (that is above the advertised price) the agent will need to re-advertise or notified interested parties of a new minimum range.
I see that this could be useful if the agent has underquoted the property and it is attracting a lot of interest due to the low advertised price. If you submit an offer before auction (above the advertised price) it should force the advertised price up and therefore you should have less interest to compete with at auction (if they don't accept your offer before).
Can anyone verify that this is true? Are agents bound by these rules from the REA, REIV or some other laws? Would be great to pin point which rule / authority governs this and who we can "dob" the agent into if they break the rule.
thanks,
JmanThanks all. Well I now have in my possession endorsed plans with design that worked around it at minimal cost.
It didn't look possible at first however getting the right designers and people in the room with council to discuss possible solution ultimately lead to a design around the problem.The design solution involved allowing a one metre wide easement that allowed clear ground floor access to the drain pipe. In the basement a section of the roof was "indented" which contained the drain pipe.
Working through the problem with the team, brainstorming and discussing with council got us home in the end.
Hi all,
thanks for your feedback. I'm leaning towards a more traditional on site auction because the location is good (on a quiet street), the place is attractive and is targeted to first home buyers who I suspect would be more inclined to attend on site auctions.In room auctions (for residential properties) are fairly new in Melbourne so I don't really want to be a pioneer in testing this out. Most residential properties in Melbourne appear to be sold as either on site auction or private sale so I think is safer to stick to that. My thoughts are that buyers tend to be afraid of new things particularly if its the first time they are buying a house and putting up vast sums of money. So an in room auction could scare some genuine buyers off.
At the end of the day I think the agent is being a little opportunistic as in room auctions could allow the agent to move more properties in a shorter space of time in the one location (ie. its more convenient for agents – higher volume, more commission in less time). It's therefore not necessary in the best interest of the vendor particularly when there is no clear reason why we should go against the trend of on site auction or private sale when we have an attractive property for sale.
thanks,
jmanHi James007, the lesson for me is that its not enough to search for easements on title or s32 or planning maps (although it should be enough). You actually have to call the drainage department at the local council and even the local water authority before you sign any contract and get them to check for any drains / sewers / pipes etc particularly if you see any kind of drains on site or in close proximity off site.
In our case the drain was concealed in the cross over of the site. (The land surveyor didn't even spot it.)
This would be applicable for any developments that involve some kind of basement of significant excavation. For ordinary town houses it may not matter as much but it is adviseable to know what issues could be on site beforehand.
Thanks for your replies, we have continued with the investigation and found a couple of options which are 1.) suspending the 300mm pipe in the basement or 2.) re routing drainage to new 300 mm pipes. Both sound pretty expensive though.
On the legal side as no indication of the pipe was given in the s32 we could technically withdraw from the purchase (we haven't settled yet) although we would rather not because there is still profit to be made.
We have other plans and contingencies to protect us, its just that there may be something we are missing.
We are in Victoria, if anyone else has specific suggestions to enlighten us it would be great to hear from you.
Hmmm… interesting. I would go ahead with it but the one big thing that is stopping me at this is the potential fluctuations in the exchange rate.
If the exchange rates were to change significantly not in my favor I could be pretty serious trouble.[worried]
However I am fairly certain that there is a way around this through hedging exchange rates. How would I go about hedging to limit potential downside exchange rate risk?
I understand that I would sacrifice potential upside to hedge away potential losses but I am happy to do this to ensure there is no over exposure.
After all, I think we are all in the business of property investing not speculating on exchange rate fluctuations.
Any pointers on how to hedge to prevent significant losses due to fluctuations in the exchange rate would be much appreciated.
jman
anything is possible especially when you have a plan to achieve itThanks guys,
My father lives and works in Singapore and is a dual citizen – seems like an Ideal opportunity for a joint venture.So with a withholding tax of 10% on say a $100 000 loan at an interest rate at 3% does that mean that the total payment including tax would be 3.3% or $3300 per year?
– If that right its still less than half the standard variable rate in Australia. [exhappy]
Would I even have to pay with holding tax at all if my business partner is making the loan repayments?
Well this may just well open the doors to a whole raft of opportunities to acquire positive c/f property! [biggrin]
jman
anything is possible especially when you have a plan to achieve itI too am looking for a good property lawyer / conveyance in melb metro. Would be great if you could let me know.
thanks!Jman
Buy Problems… Sell Solutionssorry, I’m a bit new to this and did not realise that I’m not allowed to let people know I’m private selling.
Please feel free to private message me if there are any further questions / issues.
Greg – I’m fairly new to this forum, I’m just starting out in the property development and I hope to gain as well as provide some useful information at these forums.this is a fairly similar sitiuation to what I am doing in Melbourne. My partner and I purchased a property of a 750sqm block with an 1950 wb house existing at the front. We renovated the house and am currently in the process of subdividing the sell backyard with plans and permits. We will keep the existing house as a +ve cash flow property (it will be +ve after the sale of the backyard land).
We have choosen the sell the backyard as it enables us to keep up the momentum / velocity in which our money is working. ie. if we did the development we would have 200k – 250k tied up for 6 to 12 mths development, in which time I could have purchased, subdivided and sold two more sites.The plan is to continue to do this until our capital base is large enough with enough +ve c/f property before we start developing the properties ourselves. Currently we are not comfortable developing without firstly having a few smaller wins through subdivision under our belt.
Jman
Buy Problems… Sell Solutions
