Hello Celivia [goatee]

I watched it, and I’ve worked out that all you have to do is charge gazillions and then make the people meditate- it’s brilliant! [withstupid]

It’s a pity that lady lost her whole RE agency staff. Guess they just weren’t motivated to be successful- hehe. I’m so grateful my bosses are all atheists- would be a drag to have to have all that PD stuff into our offices [ohno2][tired]

And that guru fellow really needs a haircut- oh dear… He looks like this: [hair2]

kay henry

missy,

You’ve said you offered 14k less for the property, but it depends on how was being asked in the 1st place. Was it a 200k property? or a 45k property? Think of it in % terms rather than a dollar amount.

The RE is acting for the vendor. We have probably all sold RE in our lifetimes, and we know we wanna get the best price possible. If you want the place, then you might have to pay for it.

I offered full price for a place I bought. Two months later, the price had gone up 27% from a bank valuation. You can walk away as others have mentioned, or you can decide if you want to pay a price that is more in tune with what the vendor is considering.

The approach of telling a RE you will never deal with him/her again… well, that is one that I would never take. If you want to keep buying in the area, it doesn’t hurt to build relationships. It’s good to be taken seriously. Unless the RE is depserate, I doubt you taking your business elsewhere will bother them too much. But it might cost you later when you see another deal you want to buy.

kay henry

Bashiba,

Whether you’re using cash as a deposit, of using equity from existing IP’s, it’s the same. Actually, if you save up a deposit, it’s better because you have to borrow less. But borrowing from existing equity is still borrowing, so it’s not really “putting no money down”. It’s just adding to your existing loan.

COCR should add in all existing costs- borrowing costs, capital costs, and ongoing IP costs.

kay henry

Paula,

A lot of people are still trying to sell at the tail end of the boom, so if you see “for sale” signs, it might just mean there is a lot of activity for the area- probably no big deal.

Check out Australian Property Investor magazine. It tells you the median price for houses/units for the location and how many properties have been sold there etc.

Also, if you want details of the city/town, go to google.com.au and type in, initially, the town. Then read every link you can find about the town. Those links should lead you to council plans (which will tell you what infrastructure is planned etc). The links should also lead you to health reports, unemployment statistics, and perhaps rental/housing data.

Sometimes I look up “blahtown population decline” in google.com.au to see if there is any. You can also look up “blahtown real estate boom” and hopefully there’ll be a heap of links saying there’s been a boom there! However, sometimes it’s better to *buy* into a flatter market and *sell* at a boom.

A population of 8000k isn’t too bad. Just because people are selling doesn’t mean they’re allmoving out! It might mean they are upsizing or consolidating their finances.

Good luck!

kay henry

Pisces, not sure where Mysta got these from, but in general, you can find every news article on the net written about the tax changes if you go to google.com and then to the “news” section and then type in “stamp duty NSW” or similar key words.

kay henry

Tim,

You asked about rents increasing. Well, that’s something only the market can determine. If you check out API’s latest mag, they have the top 5 rent area increaes in Qld and the 5 that had the greates rent *reductions*. I guess some people will increase rents and try to make up that money for some time ahead in the future when they intend to sell their IP. But it depends on if their tenant is willing to pay that higher price.

There is still an oversupply in some areas of Australia. Tenants still have the power to choose our IP or another person’s. Some people will choose to raise their rents (based purely on this exit tax decision), but know they will hold their properties and not sell. It all depends on hoe much supply and demand there is in the future. And I doubt that can be determined by short-term taxation changes.

If you have a bunch of people in NSW now being able to afford their first home, then that bunch of people won’t be renting our IP’s, so it’s possible that the tenancy market will be tightened, and rents remain stable or reduce. But there will always be a rental market of students, families saving deposits, immigration, students etc. Just depends on where you are.

It is *possible* that some people who are renting in cheaper areas might now be able to afford to buy their own homes. But buying a very cheap place won’t make much difference in the affordability. They might save an extra $500-1000 on the purchase price. I guess some people will always be renters, and given that the govt has minimised their responsibilities to public housing, then private landlords have taken up the sslack.

Raising rents isn’t just a market thing either- it’s a matter (for me, at least) or ensuring tenants can afford the rents. Unless social security benefits, for example, go up, if you have social security tenants, they still need to be able to afford the rents. And if SS payments go up $3 a week, I wouldn’t be making that whole $3 a week come into my hands. SS tenants still have to be able to afford the other things in life too- milk, schooling their kids etc. That’s just ME though- others will have different perspectives.

Oops Tim- I just saw an article in the “up down and around” post on here which has an article on possible rent rises. Check that one out- I imagine it says the ideas somewhat better than I might have :o)

kay henry

Ted,

Don’t you think using a cliche like “herd mentality” is a bit… umm… herdish? hehe.

Exit strategy… now, lemme think about that. Well, keeping my job is a way of sustaining my serviceability, so that’s not a problem. I also have income protection insurance as part of my package, so that shouldn’t be an issue. I will never buy shares (for my own reasons), so it’s not like I’m gonna leave property.

If we are supposed to be long-term investors in property (remember, it always goes up- hehe [baaa] then why do I need an exit strategy. I am just gonna be entering, not exiting.

But if one manages one’s finances, one can always sell off an IP. That’s some kind of way of alleviating possible pain. What’s your exit strategy, SuperTed?

kay henry

“Media beat up”… well, it’s easy to use those words when we don;t like what we read. When we read that the location of our latest IP has had a CG of 30%, we don’t call it a media beat up…

I remember when Mortgage Brokers WERE independent. When they first became popular, they were paid equally by banks, so they just found the best deal for you.

I think it would be fine if an MB said “I’d recommend to you Bank Blah’s product, because it is blah percent cheaper than the others. However, I need to inform you that I get paid an extra $blah amount if you take up my recommendation and use their product.” That’s just normal disclosure- some clients would WANT the MB to get the extra kickback, because they would be pleased with the service. I don’t see anything wrong with that, per se.

But full disclosure should be mandatory or otherwise subject to complaint to the regulator/ombuds.

kay henry

Thank you Jason! I will and you also! I can’t find a proper easter egg smiley :o( So I have to give you this one that fell down the toilet :o( I’m sorry, Jason.

[dunny]

kay henry

krazy- how many times do I have to tell you? [hmm]

How about instead of calling people “amatures” (or amateurs..), you let the participants of the forum have their discussion?

Most of the posts you have made on the forum so far are mere advertisements. Can ya chill with the namecalling, please?

kay henry