Forum Replies Created
Hey Lisa…
‘you’ve made the right decision’
hehe
) The kind of forward planning and projection you’ve done is absolutely the thing that will save you from making a wrong decision. It’s such good thinking about how the rental guarantee will stall you from future sale. Having said that… rents (without rental guarantee) don’t *always* go up on our IP’s anyway. I’m thinking (I’ve mentoned this elsewhere so sorry to forum members for being repetitive, if they remember reading this before), that a suburb called Indooroopilly, a decent suburb outside of Brisbane, had vey good CG, but its median rent reduced about $20 per week over the last year. So even organically, rents can drop. In some ways then, the rental guarantee can assist… if rents might have dropped for other apartments, yours *can’t* drop.Maybe our thinking of rent always rising (I think I’ve had this belief too, really) is as erroneous as an opinion that property always rises in value. Dunno, just a thought
But you *probably* did the right thing, Lisa [happy3]
kay henry
Lisa
)Thanks so much! As Simon said, it’s a hugely valuable reply and indeed will be useful to others- and very much useful to me
) I’m really grateful to you.Ya know, I’ve just had this idea of “the one big deal”… that instead of going for the 10%, 20%, 30% CG here and there… that if one did “one big deal”, that it could fix it all up, pay off the debts, and be on easy street to do further deals down the line.
Lisa, I really like your profile, too- I hope you “multiply by contribution” about your own experiences, so that we can learn from you (3 posts from you just ain’t enough!) [cap]
kay henry
Greg,
I didn’t attend the seminar, but I hope you don’t mind if I make a contribution.
If you think your properties are performing and have not yet achieved maximum growth/income… then you’d be happy to keep them, as you seem to be doing. But in another post, you’ve said you’re not getting the income required, and hence you have to get a baaa job- hehe- I guess that would be as a shearer
) Some people might choose to sell off under=performers, or highly geared properties, and buy some with more yield.One can make any reason not to sell, and all would be legitimate. But if you want more income, you might have to look at ways to get that income, and your current portfolio might need reassessing- for you and what you want.
If you don’t want to work, then you may have to sell- in some way or form- could be subdivision, or some other form.
kay henry
Manic,
Here’s a post I put in another thread about inspections on strata title properties. It might be useful to you. It was in reference to someone asking ought a PBI be undertaken for bank loan purposes, so the content reflects that. As your unit is new, the info below may not be relevant either- hehe. You might wonder why I’m posting it at all, in fact, such is the irrelevance of it. However, give some thought to the info below, with regard to the SIR.
Have you thought of buying a unit that’s a few years old? Often, if there are any problems, they will have been identified. Also, you can get more of an idea on “real” market value, because the units may have been resold from off the plan already.
__________________You don’t HAVE to do a BPI (Building and pest inspection) for a new unit, unless your bank demands it. I didn’t get one for a newish unit I just bought, but I did get a Strata Inspection Report- essential viewing, in my opinion
Indeed the SIR showed all issues about the building, including any building problems. So you’ll get the dirt on what’s going on both inside the building, and out. Whereas a BPI will only identify problems that might exist, a SIR will tell you about what is being done to address the issues. You’ll find in it letters from solicitors engaged by the BC, reports by engineers, reponses by builders (remember, builders won’t necessarily take responsibility for any problems- they might say “We undertook work with building standard number blah in accordance with the fire protection act blah blah”. If the builders don’t take responsibility, owners might be up for individual special levies to get the building up to scratch. Any special levies forthcoming should be identified and stated in the SIR.The SIR is a report that is done by a company that does that sort of thing for a living – it’s completely independent. It cost me $150. It will alo identify if there are any tenant issues, and any financial issues. It not only states these things, but analyses them.
So I reckon if you are going to make a choice, get the SIR. The BPI might say there is some real problem occurring, and you’ll get all worried. The SIR will state that the problem is known and is being fixed in September- so why worry?
kay henry
I don’t mean to interfere here, calron and Derek- just a few thoughts.
calron, by all means, advertise services within your signature. People have “OTP Sales” or “Join my databse for CF+ properties” or some such thing. If you wanted to, you could put “investors welcome for developments” or something… advertising in signatures is acceptable.
calron, I didn’t see the substance of your initial post, but the one that remains… well, it appears that the edited one still allows forum members to see what you’re interested in. I imagine people can privately message you if they’re into what you’re looking for.
And most people come from a caveat emptor approach anyway (one hopes), so it keeps everyone safe
kay henry
Pepper “baby”
I’m late X-gen- 37, so I’m probably still of the steak knife generation I dunno about what’s been done for marketing RE… but I know that free things work for retail giants like Harvey Norman (buy a fridge and we’ll give you a toaster) and for other merchants (buty a stereo and we’ll give you a cabinet, DVD, whatever).Marketing and freebies has never much been done for property. the “free flights” to market IP’s- the two-tiered marketing ones… well, the pressure was on to buy the IP because the flight had been given. But I think if a vendor could show there’s no “catch” involved, then plenty of people would be interested.
Ya know, I always think… property is such an expensive item, that it wouldn’t kill those who could afford it, to chuck in a holiday with it.
And it’s like Amex giving out freebies or anyone else doing it- sheesh, it’s been done for years. Vive la difference, Leigh!
kay henry
Maybe, Pepper… but I think of it this way… I am going to check out some newish apartments- each have very little point of differentiation in terms of size, location, views, and no differentiation in price. So I am going to go and see Leigh’s first. Then check out others, but if they are really all the same, and price can be negotiated to the same level, I’ll buy Leigh’s.
Leigh, there will always be people telling others are unprofessional, amateurs, whatever… because people do different things than they do [baaa]but I am saying there are people like me in the market- who would be happy to buy with incentives. Marketing is all about points of differentiation. I think novel approaches are part of being “creative”. You can do what 99.9% of others are doing, or differentiate- and I reckon it would work.
It’s like saying “why don’t workplaces offer extra per year than a bonus?” But many people want the bonus at the end of the year- it has an emotional feel to it (plus a wage rise during the year, of course)
kay henry
hehe Leigh, and just to think you were gonna sell it to me before *without* any incentives. Well, now, of course, I am gonna wait. You’ll say “I’ll throw in a holiday…” and I’ll say “and then…?” and you’ll say “shopping voucher?” and I’ll say “AND THEN??” and you’ll say “plasma TV?” hehe…
I can wait, Leigh, I’m patient
kay henry
Leigh,
There are some new apartments being sold in redfern that have a $6k furniture package with them. If your place is fully furnished though, that kills off that notion. If it were not furnished, I reckon it would be good to give a voucher instead of furnishings.
If you wanted to be a bit more “novel”, you could think that if you wanted to spend 2k, well, it wouldn’t buy much furniture, so you could have 2k coucher at fish music, or some place. depends on what market you’re wanting to buy the unit- if it’s yuppies, they’d want the CD’s… if it’s older folks, they might want a voucher at a gardening centre (or they might want CD’s too).
Yack, yes, we know that prices can be inbuilt to “gimicks” so they are not “bonuses” at all… but if a number of units are being sold, and they are all the same, and they are at the same price, and one offers me 2k or 5k or 10k of stuff- for the same price as the others, then i am gonna buy that one over the other ones
And yeah, yack, according to dictionary.com, surmising is a word
kay henry
kay henry
Sorry for being off topic here for a minute folks… [offtopic] but…
Leigh, I think having an incentive for buyers is a good thing. I’ve been thinking about this for a while. I remember wondering why people didn’t chuck in a holiday or something, as a point of differentiation for their sale. I dunno if you’ve thought about a holiday instead, but I am thinking that a holiday – like one to the coast or something, could cost you and your hubby a thousand bucks, whereas a car will cost many thousands of $$$. Also, many buyers in sydney probably already have a car. But if the cheapest new car costs 15k, and that’s probably a jellybean car, then why not give a holiday instead? A really good holiday would cost $5k. I mean, I guess you could even give two tickets to europse, and that would cost about 5k- provbably with a few stayover nights.
Some people might even see the car as a bit of a burden- and given sydney’s public transport system beingdecent, may not want the car. I tend to think a holiday might be so attractive to a buyer, particularly those who think “now we’ve bought this investment, we won’t be able to take a holiday for a while.” Now they could have both!
Not trying to be “advisory” here, it’s just something I thought of myself. And I’d love to buy an IP with a holiday- woohoo
kay henry
) The kind of forward planning and projection you’ve done is absolutely the thing that will save you from making a wrong decision. It’s such good thinking about how the rental guarantee will stall you from future sale. Having said that… rents (without rental guarantee) don’t *always* go up on our IP’s anyway. I’m thinking (I’ve mentoned this elsewhere so sorry to forum members for being repetitive, if they remember reading this before), that a suburb called Indooroopilly, a decent suburb outside of Brisbane, had vey good CG, but its median rent reduced about $20 per week over the last year. So even organically, rents can drop. In some ways then, the rental guarantee can assist… if rents might have dropped for other apartments, yours *can’t* drop.
