thanks for the advice.  if we do make a move on nextdoor it would probably be in about a month after the renos are finished and we have tenants in.  one thing to worry about at a time!

i was going to offer them the same price we just paid for our place, as we got it around 50k under market value (listed for $330k, we picked it up for $250k, houses/land such as this one are selling for about $300 – 310 at the moment).  they may be wondering what their house is worth, and if i mention what i paid for this one, they may think theirs is worth the same. 

i dont know if i could be that lucky but its worth a shot i guess.  they most likely wont be wanting to sell, but it doesnt hurt to ask.  i saw them yesterday when i was at the house measuring windows and they looked like they were in their 50s.  maybe the kids have all moved out and they are wanting a smaller home, cos its quite large.

ill definitely take your advice about not making the approach myself – it makes alot of sence and helps to keep the emotions out of it.  cos if they start telling me about how they lost all their belongings in the floods which went through mackay last year then id feel like a real mongrel getting their house for under market value, even if they are willing sellers.  i wonder if there are any buyers agents in mackay and how their pricings work?

eepers – would it be a better idea to then just covering the lino with new lino, instead of polishing it?  is that do-able?  its not black underneith – its greyish.  cos there is a tear in it and i could see the colour.

literally the only renovations we did to that unit was a lick of paint – so a few hundred dollars at the time.  it didnt (and hasnt) needed anything else done to it.  we bought it with a new bathroom and kitchen.  it was amazing – we did a valuation on the property 10 months after we bought it (in June 2006) and it was valued at $190k at the time.  so we made nearly $100k in 10 months.  nearly blew us over because we knew nothing about property – we just wanted a little unit to live in.

but since i posted this post we have gotten a house under contract.  listed at $330 but we scooped it up at $250.  the vendor just wanted it gone.  Cosmetic renovations planned for once it settles (paint and a few minor things) – the renovations will come in under $10k.  850m2 block of land that is 3 blocks from the CBD.  It has 3 bedroom, 2 sunroom and 1 study, and a new kitchen.  house in good condition with good street value.  and we will prob be able to get about $380 a week for it.  waiting for the renos to be done to get the appraisal.

We have had a meeting with the financial planner and we've decided that we will valuate the property (and the unit) at the end of the year and redraw enough equity to put it towards a 20% deposit on two similar properties to the one we just bought.   we are *hoping* that at the end of the year this new house will be valued at between $300 – $350k because we bought it below market value and did a little work.

so that is the short-term plan at the moment

couldnt see it there the other day – but maybe they had just sold out of the current issue.

good luck rudra.   sometimes its hard to walk away when they want to negotiate above your comfort level, but keep emotions out of it and think with a level mind.  that was one of the best bits of advice ive been given over the last couple of months. 

we only wanted to buy now if we got a ridiculous bargain from a vendor who was willing to sell way below market value.  so we kept making ridiculous offers until we found a vendor in a position that was favourable to us.  we put forward ALOT of offers – i cant remember how many.  we were thinking that it may take us till the end of the year to get the kind of deal that we wanted.    nearly every house we looked at was $330k-ish … because that is the price of the 3 bedder older houses here at the moment.  and for each of them (depending on what needed to be done) we offered around $250k-ish and didnt negotiate.  u can see why we got alot of knockbacks.

at least this way we can look at getting another one in 6 months hopefully.  refinance this loan and see if we can scrape together enough for another 20% deposit on another deal.

let us know how u go with your offers this week.

thanks   i think we will go with the roller blinds.

wow richard – nice buy!  is there a reason why u are not setting till the next financial year?  is there some kind of tax benefit?  i ask because our settlement is on May 28th … so is significantly shorter than yours.  am curious. 

ive got itchy feet now!  i cant wait to get my feet dirty with this small reno. 

want to know the even better news?? 

i had to drive 2 hours yesterday to see the house because i made an offer without seeing it – planning on seeing it if they wanted to go that low.  anyways, when i went there the bathroom is definitely not "renovated in the last few years" as the description said.  i would estimate it was at least 10 years old – but was still in good condition.  it doesnt need replacing.  but it definitely looks older.

so cos it wasnt what i expect i said that i wanted to change my offer – seeing it wasnt what was described in the real estate ad.  and they accepted!!  i knocked them down ANOTHER 10 thousand dollars   im now paying $250k for a 3 bedroom, 2 sunroom and 1 office house. 

so its all done now.  contract is through.  so just gotta wait for building and pest reports.

now that ive seen it i know that the only renovations im going to do are:

• new lino in the front sunroom needs to be replaced
• the glass side of the shower screen needs to be replaced cos its got a crack
• new paint through the house – the current colour is aqua blue – gross
• the grass is hip height so i need a prof mower to come through with something more powerful than my mower – inexpensive
• the house needs a HEAP of elbow grease cos they didnt clean at all.  even mould on every ceiling
• maybe new front door, but i may get away with just a repaint
• a few missing panels on the front fence (i discovered it already has a 6 foot high fence along the side where the yard is … its only short in front of the house – yay!)
• a few new light fittings and 1 new fan

but that is it.  so shouldnt set me back too much.  the things i was pleasantly surprised about:

• floorboards are perfect, no need to repolish
• windows are all good, not the original ones
• split systems in all 3 bedrooms, plus 1 box aircon in the back sunroom
• the office is surprisingly adequate – i thought itd be the size of a cupboard
• the roof looks perfect
• the guttering only has 1 small section that needs to be replaced.  its about 50cms long.
• one of my mother's close friends lives across the road so she can keep and eye on the house for me while tenanted

I cant wait to get the inspections back.  i went and saw my financial planner yesterday for a meeting and his jaw dropped when we were talking about the house.  he was impressed 

sorry i shoulda specified this before.  im wanting a 6 foot wooden picket fence, or something that provides the same blockage.  its just that the 'backyard' is more beside the house than behind.  and my target market is families.  i wouldnt want my kids playing beside the house in plain site of the passers by … and i expect other families are the same.  its very close to town and is joined onto a busy street.  a higher fence is more protection for the children when the play.  hide them from people who dont have the best intentions.

oh … and just in case someone was wondering – we are wanting to renovate, rent it out at approx $350 a week, refinance the loan and use the extra money to purchase again.

or maybe we will sell it instead of refinancing, depends on the market.