Forum Replies Created

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of justy88justy88
    Member
    @justy88
    Join Date: 2008
    Post Count: 6
    May 27, 2008 - 11:33 pm

    Sorry to sound cliched, but the common message I seem to be hearing is "location location location" 

    Yes, a property CAN be a good investment as long as you are well prepared for all contingencies (whether they be enough buffer for increased rates, no tenants for a period, working from a single income if your partner loses their job etc etc) as well as having the right location that is expecting sustainable growth in land value (due to new development of more houses, schools, shopping malls, public transport etc)

    I haven't got a call from my potential real estate broker/agent/developer (whatever they call themselves) to confirm our appointment on Sunday, but the first thing I will ask them is what suburb and street is the development going to be in so I can do some investigating myself first.  Hmmmm I wonder if they will cotton on that I had received advise from someone. Ie You fantastic guys on this website!!!!

    Justin

    Profile photo of justy88justy88
    Member
    @justy88
    Join Date: 2008
    Post Count: 6
    May 27, 2008 - 2:12 am

    :)
    After reading this thread about poor psychiatrists shocking experience, I must admit, at least your sense of humour has stayed intact!  I'm presuming that since the thread is about a year old, that the dear tenant has long gone the way of the dodo (fingers crossed for psychiatrist)

    I just wanted to mention my experience, which was utterly wonderful!  Originally when I had a new tenant in, I did have a PM, I did however keep in close contact with the tenant who was a middle aged lady with her elderly parents as they were very nice people. 

    Eventually after a year (and I may be wrapped over the knuckles for this) they were the ones who suggested that instead of me paying the property manager, they could pay me directly and I just needed to change the RTA over to my name so I could look after the bond.

    Pure joy! After the paperwork was finalised, I was over (more as a family friend) helping to change a lightbulb or cutting back some trees for them.  I was always invited in for dinner or they would give me a cold drink while i was working outside for them, they even wanted to PAY me for doing the work for them!!!

    I was sad to see them go, but they always had the dream to one day buy a house for themselves, they even offered to buy my house they had lived in for two years.

    Guess my point is- for every horror story, there is (hopefully) a happy story to go with it.  Its just a roll of the dice!

    Justin

    Profile photo of justy88justy88
    Member
    @justy88
    Join Date: 2008
    Post Count: 6
    May 26, 2008 - 5:50 am

    Thank you guys, I now have a plan of attack for this Sundays meeting!  and I will let you know what their expession is when I ask to get an "independant evaluation" done before I do anything else ;)

    Lalibella, yeah, the financial broker went through the numbers with me and actually did the calculations at a 9.5% interest only loan as a worst case scenario.  He did mention a M5 (?) form that I was to submit to my employer for pre tax benefits? 

    So, after this meeting: 1. NO $1000 down. 2. If I like the area, I will do some investigating on its pro's and cons. 3. Negotiate house inclusions only when I feel comfortable with the location.  4. Hope the wife gets an inheritence from a rich dead relative soon.

    Any other suggestions? Cheers guys!
    Justin

    Profile photo of justy88justy88
    Member
    @justy88
    Join Date: 2008
    Post Count: 6
    May 25, 2008 - 6:02 am

    Thank you Bardon, Mel and Catalyst for your very valuable advise!!!

    I will definately be using it!  I plan to have a look at the property developers package (land location & house inclusions) this Sunday 1st of June, go home, DEFINATELY NOT give them $1000, do some investigating on its growth potential (like Bardon said- independant valuation of land) and future infrastructure (schools, shopping malls, public transport etc.)  Make sure it suits out budget and include EVERYTHING that Catalyst has mentioned.

    In the meantime, let these guys stew on my counter offer of price & inclusions.  In my younger days, I would have probably naively  jumped into this offer that "sounds too good to be true"  Now as I get older and through the wisdom of a good woman (my wife hehe)  I am learning to tread slowly…

    Profile photo of justy88justy88
    Member
    @justy88
    Join Date: 2008
    Post Count: 6
    May 25, 2008 - 12:24 am

    Hi David,
    Thanks so much for your advise!  This is all quite new for me, so any help is really appreciated!  After speaking with the financial advisor/home loan broker he was very thorough on what risks there were and what I should be asking of the building company (like you said – build time guarantees, penalties for delays etc.)

    The property developer have now set up a time for me to visit some land, and of course are asking me to put $1000 deposit down to secure the land if I like it.  Should I go in cautiously and resist paying the $1000?  I am planning on haggling the total package and asking for more inclusions to see what they come up with.

    Thanks again mate!
    Justin

Viewing 5 posts - 1 through 5 (of 5 total)