hehe Matt, you plagiariser []

kay henry

Bassla,

You haven;t provided much info, so I’m just guessing here, but:

* ask the RE to send you photos (scanned) and perhaps you can ask them to do a “virtual online tour” of the place- dunno if they’ll go for the latter, but you can ask.
* check out everything you can on the net about the town- google.com is your friend
* ring up RE agents in the area and ask them about the locatoin and the particular property- if it’s in a small town, you can bet they know everything about it.

All of the above will only take you a couple of days. Given that sales are slower these days, most RE’s will wait, especially if they think you are sincere.

Make sure you get a building and pest inspection! Then you can find out if the place is a total dive or a tenantable dive.

kay henry

awww Matt and Prop,

Happy Christmas to you both :o)

kay henry

secretgnome

Yes, it might be better for some people to be highly geared- but not for me. I think a lot about “risk” and investment- that’s just me- for others, the risk might be in gettimng more and more properties; for me, it’s about managing my life and not being too stressed by something I like – property is fun for me, and I don’t wanna ruin it by pushing my “affordability index”.

There are some people who get in over their heads with debt. If I owe 70% or less of the value of what I own, then that is what I feel able to risk- for others, their threshhold is higher. But I know of few investors that wish to have a high LVR. I think most people’s aim is to be debt-free at some stage.

kay henry

Mopsy- cute nick, by the way

Apparently there is a good QS in karana downs, west brisbane. Brenda Irwin, who’s currently featured in Australian Property Investor this month (she bought 20 CF+ houses in 18 months), wrote this post elsewhere:

“Hi all,
Thought I should share my good fortune with you.
Found a QS in Karana Downs, Qld (near Ipswich) who has just done 7 IP’s in Ipswich & only charged me $150 per IP plus GST.

“Also did 6 for me in SE Qld (6hrs there & back) & only charged $50 per hour travel totalled over all 6. Worked out to $220 per house!

“Wildermuth Building Services Ph07 3201 1171”

Cheers Brenda

kay henry

Craigles,

I think the answer might be in serviceability. I think you would probably be able to *get* a loan, given that the lending authorities have a lower set of criteria for lending these days, but if you are on a benefit, will you be able to repay the loan without being solely rent reliant?

It depends on the level of risk you are willing to take on. I think property investing takes a wage to make it sustainable- at least for the first few years of the plan.

kay henry

Chris :o))

I think it’s really valuable that you’ve provided a history for this property. Whilst 125k doesn’t seem like a lot to me (the prices all over NSW and australia means you can get bugger all these days for under 100k), it’s great to know a bit of background about properties so we can make informed decisions- you’re right, and I appreciate it )

In terms of “value”, funnily enough, I recently bought a place for 69k. Two weeks later, the unit next door, in the same condition as mine, sold for 87K! My place got valued formally by the bank two months after, and was valued at 90K. So what I meant by “market value” bc, is that really, the market will pay what it seems fit to pay. That may be “desperate” or “uninformed” but really, I think the whole of the real estate boom has been based upon what people think a place is worth paying. Our IP’s may not have been improved one iota, and yet still they have risen by what the market determines, and most have doubled in a few years.

Again, thanks for the info, Rugby ) 125k for an ex-HC house in Forbes, of all places, seems a lot!

kay henry

James,

Based on a 25-year mortgage, that’s about 500k loan or on 30 years, about 600k. (plus the markup on purchase price discussed elsewhere). Do you think many wrappees can afford this loan?

kay henry

Folks,

I’m not sure what the problem is here. The buyers might make 36k profit if they get their asking price. Isn’t this what people call “flipping”? And isn’t wrapping a place a similar thing? The vendors will be looking for a quick capital gain, and be paying 100% capital gains tax in the process of selling within a year of purchasing.

The house might have originally been “undervalued”. If the house sells at this price of 125K, then if the market pays it, that is market price.

I am not suggesting I would do this practice personally, but I thought people here were either into cashflow or capital gain? If so, the solicitors who purchased this place are just seeking their own CG in a short period of time. They’ll make 36k minus 1k stamp duty minus 18k CGT minus about 4k in selling costs. That’s 13K profit *if* the seller gets full price. If the price is negotiated down 5k, that’s 8k profit.

Isn’t that just “business”? I thought property investors would applaud this kind of entrepeneurial activity.

kay henry

awww Michael, don’t be sad. This topic is about a vendor financer. Why don’t you start up your own topic, Michael and stop being so negative []

kay henry