Forum Replies Created
Hi There,
(HI Paul and Karen also :o)
To explain Paul and Karens comment a little further
"ii) We always keep the Rates and Insurance in our name and have the bills sent to us. We don't want people chasing us for bills that haven't been paid by our wrapees. Of course, the wrapees pay these bills."= This is added to the installment due on the financing and is combined into one weekly payment. Then this is checked every 6 months and at the end of a year….. if they have paid more than the amount charged to you by the greedy council and insurance companies…. then you cut them a cheque for the difference (good xmas pressie for them).
Hope this helps to clarify for you.
Cheers
KiwiAbout 2K per annum roughly will give you and idea on repairs and maintenance… + 2-3% vacancy per annum.
I you are getting hte house a 20% below market valuation (registered vals….) then you hsould be able get fairly close… if not you need to find a better deal and lett he mums and dads of the world (average investors) get hold of it …. however if it is in a high growth area you could consider it as a possibility.
Look at a hundred houses and see if it is a bargain or not.Why Rent? Rent 2 own!
http://www.rent2ownaus.comThis is a new area [fez]
I just had another call fro mteh is vendor and they have just dropped another 10K for a quick sale ….
Who is in?Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by Sandstone:You cannot force an agent to put forward your offer. If you firmly believe that an agent is withholding an offer you thing the vendor should see then the only thing you can do really is knock on the door yourself (assuming they live there).
Good luck.[thumbsup2]You could alsways speak with the principal of agency. Walk in with your offer and demand to speak with the principal of the business with a complaint of a most concerning matter … explain that you ahve put an offer on a prof=perty and the agent will not put it forward…. see what happens…..
… or
FInd out how long it has been on the market and also find out why they are selling… if you detect there is no motivation at all on the vendors part to sell (this will mean they have no need to adjust the price or the listing is too new)….Time fixes everything!!!…
1. in time the vendor will either run out of time for what they were trying to acheive … or try to correcth eprice and follow the maket all the way down instead of getting ahead of a prices if the market is falling….
2. in time Vendor will just keep relisting until the price is acheived (may take years …. however if they are in no hurry then they will wait).
3. In time the vendor will become conditioned by hte agent that is working for him… to accept the real market value based on the offers they are getting….If you are not dealing with a motivated seller then you will pay retail and low ball offers will not work….. as a last ditch effort… give them an unconditional “CASH” offer of $xxxx attach a checque to it and send the agent off with it…. (try to make it toward the end of the month as the commission will be on the agents mind by this time in the month).
If that does not work … put in an offer on another 10 houses and get on with it….. keep it in the system though as in time the deal may still swing your way ….
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comHey There,
I wouldn’t get too upset about hte hype of the market at the moment either as they are over priced there at the moment and there are other markets that are good for buying at the lower point in the boom/bust cycle…..then in 6-18 months you could benefit from the rise in capital gains…… better still buy in a good growth potential area (past stats from residex should give you a few clues)….
Buy a dog house (tired but….not stuffed) Give it a 10-12K makeover ant then get it revalued … you could then sell it … or wait till prices rise again.
Or you could find a motivated seller and give them a get out of financial doom & gloom card … you should be able to buy wholesale then and then still make money in a rising market or falling market as you should have a buffer agains the house prices falling!
Hope this gives you a few good ideas to develop on…
Cheers,
Kiwi
[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comThis is a fantastic and generous gift you are giving us … I will enjoy this read and hope to see more!
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by dannii72:Thanks for he quick responc[biggrin]
At least I can make a start. The only thing i wasnt keen on was going guarantor. I was thinking it was awfully risky considering I dont trust him very much!
That ok… you can still take control of it if you go guarentor…..
Limitied Power Of Atourney will see to that ….
This way you can control all the bill payments, insurance payment etc …even if they are in his name. Or you can just Rent 2 own it back to him and get him to prove to you that he can do this … or he is out (with his credit still in tact…. he will still be better off than he is today!).
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comHey there,
Don’t know if this is any help but here it goes.I would find out:
1. If they are behind on payments
2. How much to compete the project …. or is the mortgage going to cover it?
3. Get a payout figure from the lender to discharge it (this will let you know if there ar any other credit cards or anyother nasty unkown bills to tag onto the payout figure .
4. See how much the girlfreind put into it?
5. See if she will accept a cash payout to sign over her rights to the property?
6. See if you can assume the mortgage (Limited power of atourney).
7. Get deed signed over from brother in law and the girlfriend…..
8. Perhaps you could then also see if you go guarantor on the mortgage whether the bank will back off.
9. you could get a lease option on it with full rights to renew and give the Bro in law a small cut of the profits later on down the road (say 5% of nett profits + his deposit back….Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comHey Westan… Good to see you back on track again! [biggrin]
I agree with your wholeheartedly….. to a point. What you say is correct , however the ripple effect from house prices dropping in the large cities … is usually because the sentiment is that they either are to high, Yeild are too low for investors, or …. pack thinking has gone through the masses thinking “sky is falling … the sky is falling” This is usually the media that pushes this frenzy ahead full steam and hte government has to eventually step in to apply fiscal damage control to slow down the frenzy.
On the other hand people are still looking outside the cities for good investments and since the cities are quite volatile (upto 25% overpriced) at the moment … they look at risking less capital to buy out where the yeilds are much higher… so a ripple effect will continue to slowly roll throug the lower price bracket houses and make them spike a little…. any how that is just my humble opinion on how things will happen….
HAve fun out there and …. “Live With Passion”
Cheers
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by michelle34:Thanks for your feedback Craig. we split all costs associated with the property (mortgage, expenses, renovation costs) 50/50 with the intention of splitting any profit in the same way when the house sold. my buyout calculations so far have included 50% of all closing costs and renovations costs plus 50% of the difference between purchase price and current valuation price. not sure if what we’ve paid off the mortgage is to be taken into consideration?
Hi There,
I think you have hit the nail on the head with the following
Payout can be calculated in three stages:
Stage 1
1. New Valued Price (2 x independant valuations added and then divided by 2)
2.Minus current mortgage owing will give you Gross profit…
3. Minus the total of all expenses including establishment, deposit, stamps, mortgage stamps, legals and renovations (including current valuations and closing legals of this transaction).
4. This will equal net profit. (not counting the mortgage)
5. Divide by 2 and you should have the nett profit = AStage 2
Take the remaining mortgage and divide by 2 = BStage 3
A+B = C
C = Total amount you should receive.I think this should do the trick. (I hope it helps)
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comI would suggest this
Tell them what buying range you are looking for…. Ask them for hte biggest problem property…. after all the bargains are not on the asking price…. but on the negotiated price.Cheers
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comVery Interesting indeed… however they [baaa]do not look at one key piece of data (or fail to highlight it to give thier story impact…more likely)[withstupid] and that is:
The cycle frequencies may be hard and fast…. however if you compare the lowest point of the newest Boom/bust cycle to the lowest point of the previous cycle….. you will see that the price is always higher which means that the risk is quite low in fact.
Take those low points and add them together and divide by 2 to get the average growth….
WE need to look at the big picture and not herd [baaa]mentality (no disrespect to sheep)[biggrin]
Food for thought anyway!
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comDepends……
On rental demand.
Rental return.
Rental vacancy periods
Building condition.
Local employment available.
body corp fees.
Body corp history and pending repairs to get underway.
growth in area (capital).
Population level (increasing or decreasing).
Unemployment rate.
Area demographics…..Just ot name a few.
Why Rent? Rent 2 own!
http://www.rent2ownaus.comHey there!
I agree with the goal sounding board…. if you keep it … does it get you closer to your goals or take your further away.
DO you know the value of the land??? (other than what the buyer is offering?).
Make sure you know what it is worth before you sell it as you may be getting well under market rate for it.
Since we are adults and have to live up to our responsibities… If you made a mistake buying this one (which is ok by the way … as you have now made a difinition in your property training and will learn from it to improve and fine tune your expertise!)… then just admit it and move on… take the loss on the chin and get cracking on the next deal to move you toward your life goals
‘Cut your losses and let the profits RUN!'[strum]
Cheers
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comIf I can assisit to clear up things (in case of confusion).when yo uby …. you nee to know your financial position at the beginning of the process and also know your “Worst case scenario”
So if Plan “a” does not work” then go to plan “b” ….
Fo0r example if you buy in a strategy that you are going to buy on wholesale and then renovate and then sell and you know the yeild is say 11.5% … then you know if you renovate and then try to saelll…. and cannot,….. you canthen rent for a higher rate (due to renovations) and sit on a cash cow till the next deal comes along … you can then access the equity to purchae the next deal…. meanwhile seems like a silly time to stop checking out other houses in case it doesn’t pan out.
So if you are unable to ell at a higher rae … you simply rent out at a high yeild!
Cheers
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comwell there[strum]e ya go!
Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by mum:Check out what service is (supposed to be) provided before you sign up. And also ask how many they have on their rent roll. A good PM is worth paying for if it means less and shorter vacancies, higher rent, happier tenants, and no problems when tenants move out.
Also good to find one recommended by someone independent of the PM or the agency.
Mum
I personally have had a couple of run ins with my property managers and have found that the reason you do not get the service is if you get hte answer of hte question I alsways “now” ask any prospective property manager…
Does your company sell property? – The answer gets me interested or poliley ending the call.
If they sell houses as a core part of the business… then wehn it comes to push and shove … the director does not spend as much time with the end of the business that is not making the 80% of hte income in the business!
…when you really think about it … most businesses will spend time with the answer to this: …
If 80 percent of the revenue of the business is earned by 20% of the clients….. only spend the time on the rest of the business on a need to basis…. business management 101!…..
[strum]– Don’t the truth Hurt?! … Proper Professional Property Managers do not sell anything… they look after the clients as it is thier life blood… they charge more and you get better service… gaurenteed!
BEACAUSE YOU ARE PART OF THE GROWTH PLAN OF THIS BUSINES AND NOT RELIENT ON THE SALES SIDE OF THE BUSINESS TO PROP UP THE REST!!![blink]I remember when I was working for the largest TELCO in the world and this was exactly … the philosophy! I got burned a few times and then worked out how th game was played .. and life has been better since!!!! [biggrin]
Why Rent? Rent 2 own!
http://www.rent2ownaus.comOriginally posted by Housemender:I figure most properties with a good return would be promoting the fact and would therefore contain the word “return” in the property description.
I’ve found a few great properties in most States over the past few weeks – but I’m not buying though!!
I would suspect you would be paying retail in most cases as this is a conditioning technique to ATTRACT investors by agents….
95% of the time the property s retail or higher and you are buying against the investing grain… buying @ discount…. you make your money wehn you buy people and not when you sell!!! …as if you guys didn’t know right??!! – most houses bargains of hte century are bought off the negotiated price rather than the sales advertised price.-just in case you did not know that …. well perhaps you all did [blush2]
Cheers,
KiwiWhy Rent? Rent 2 own!
http://www.rent2ownaus.comRe the Cars…
I believe the biggest safety that does nt comply with AUST standards is the lack of side intrusion bars (steel reinforcing channel that is welded intothe door to prevent crushing from side impact)…
And we all know how crazy the Sydney sity clickers are [blink]
And if you all have a visual of that…. then you should see the insurance companies over here cry when the weather man announces it is raining outside (more reliable than predicting rain [confused2])
Lets just say …. if you have ever been to a carnival and hopped on the dodgems…. well you can fill in the gaps!!!! The bill at the end of the day is usually over $100,000 per day of rain put it that way.
Any hoooowwww …. have a good one!
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.comcheap flights = http://www.webjet.com.au
Cheers,
Kiwi[strum]Why Rent? Rent 2 own!
http://www.rent2ownaus.com
