Forum Replies Created
Hi Terry,
My deposit has gone ….. Should my solicitor have done this search to protect me? Or is it something I should have done?
Thanks
ShaneLooking For 10 – 15%+… on your Cash? goto:
http://www.kiwilogic.bizI think the agent got mixed up … you can actually inclued a rent refference i nthe option agreement and refer it to include all termsand conditions in the state and federal residential agreements apply…. However this is not a good Idea as soon as you put the words:
Option Fee
Rent credit ad hte like into a rental agreement… the jugde will rule in favour of a plantiff for equitable title and you can lose the house in a worst case scenario.
In a nutshell…
Keep the lease and the Option paperwork very very separate… mine is only 3 pages deep and I just use the local Residential rental paperwork… for $8.95 in the local postshop or newsagents.
Cheers,
KiwiPS…. I have just picked up a 3/4 bed 2 story house in Wallacia on a 3 year option for grand total of $1.00
If anyone wnats it…… I can reassign the option interest directly to you… for a small fee or you can buy it outright if you want to waste the 20% capital needed to secure the deposit.
Cheers,
Kiwi
Looking For 10 – 15%+… on your Cash? goto:
http://www.kiwilogic.bizOriginally posted by World Changer:Hey Kiwi
What is the market value of the property ?
have you had a recent valuation?
Of course yr prop is slightly above due to yr terms but interested to know local valuesWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Hey there,
Have not had vals done for a while…. based on comparable sales in the last 30-60 days … around 350K.Looking For 10 – 15%+… on your Cash? goto:
http://www.kiwilogic.bizOriginally posted by Terryw:Hi Kiwi
Sounds not bad. Would you consider renting to someone who is going to on rent this place out? If so, what would the market rent be like there?
Hi Terry.
Had three appraisals a month ago and they came in at $280-300/week.Looking For 10 – 15%+… on your Cash? goto:
http://www.kiwilogic.bizYeah …. Westpoint have over 250 companies tied up in the whole sham…. Investors are trying to mount an attack on them … but the directors have set up such a web of deception and track covering…they will have transfered all obtainable assets out of them and the investors wil have wasted thier money trying to get it back. ASIC is not gonna foot the bill either ….
so much for the watchdog…… We need to adapt the Us buyer beware policy and get rid of the so called watch dogs (ASIC)… as they never …ever stop these guys from destroying the lives of innocent people….. however they do support the people that fund them!!! = Companies!For 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizOriginally posted by Carl.Alexander:This was on Aussiestockforums last week.
Re: Westpoint collapse
On another note stay well away from this company….Powerloan
This is the company that recommended Westpoint to my mother, how ill informed were their financial advisers. They took my mothers money just days b4 the collapse
Good Point here … I saw this on ABC last week nad felt sick when I learned that over 30,000 Australian citizens lost over 1.35 million and cannot claim a cent back!
On another note I agree with Westan here as in any market downturn you need to understand the upturn process of events.
Basically this means that as we had a boom recently … we had Realestate agents, Brokers, Mezzanine lenders, and many other related professionals enter he market like mushrooms as the money was good…..
Now that things are not so rosy…. the not so stable ones are falling by the wayside due to lack of commissions and bad business practice/ethics (except for the real clever rip off merchants shuch as Teh lovely people over at WestPoint – who are still operating as FernTree now I think).Let me guess he is putting up some funding to get into this wonderful experience with this brokerage?….
If your husband has no experience in the industry and as it is very tough now … he better expect to have some major income delays as even if he makes a sale in 3 months … your money tin will be dry for 6 months!.
As Mr Jenman Says “Caveat Emptor” – Buyer Beware –
Cheers,
Kiwi[biggrin]For 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizHey Westan,
Dunno how you got your figures to strip down the return …. (guess that is why I don’t like putting figures up….. ( I put the April 2006 one on view to show current buying power)I know that I NETT $33.00 per Week in the hot little hand before tax considerations. (as for teh lend 7.25% fixed int only for 5 years)
As for vacancy I do not have any of my properties that have vacancies above 1% ( based over the last 5 years of vacancy records in my portfolio) This is due to the way I take care of my tennants and as I upgrade… the rent increases by $10-$20/week (the tennants don’t mind at all… as they are getting to live in a better house every year)
… or I get them to look after the maintenance and repairs if necessary with wraps or lease options…. (Turning them from 35% to over 100% COCR’s….
Anyway I am not out for a war and peace novel here …. you just asked for an example and I have supplied one of my work in progress deals (they come along everyday – even though the sky is supposedly falling out of NZ).I am sure another 50-100 readers and other … “yeah but what if” people also…. so this will be my last post on this thread as I am not here to actually “prove” I am doing this….. my numbers and historical returns speak for them self (ask the TAXMAN!!! [cap])
After all…. Renting is my “worst case scenario” when weighing up risk and return on my transaction … but hey we are all different in our methods and goals. Best of luck again to all and keep up the good hunting and deal sealing!!
Best of luck all [biggrin]
KiwiFor 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizHi Ozi,
If she has put the clause in the contract then the agent has to accept… I have done this many times and the agents don’t like it … but they usually accept … I also like playing wit hte agency agreement to see if they are having me on on the price … I write in front of them (on the contract) … for every $5,000 (five thousand) in reduction of asking price, 0.25 of commission is deducted off the agents commission sum.
This will show straight away if they have been straight up with your assessment or whether they have high balled you to get the listing!….
At the Auction you should do this….. See what the opening price is….. stand with the auctioning agent and face the other bidders and put in your price right off the bat (even if there are no bids!) and glare at the rest of the potential bidders. – This will scare off many of the bidders if you have just leapt up from opening price say $40-60K straight away….. Give em the impression you will fight to the end on auction…. “DO NOT MAKE ANOTHER BID THOUGH”
If the price goes above this then you know you had a good price in mind and can walk away with a smile knowing you had the right strategy and did not overpay for the property.
bEST OF LUCK,
Kiwi
[exhappy]For 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizOriginally posted by westan:Hi guys
Kiwi As far as this thread goes, i doubt that you will be able to achieve 15% net returns, more like 5-8% can you supply an example.
Hey Westan,
Or Course!
Just purchased 3 bed Weatherboard (April 2006)
PP=$79,000.00
Rent = $170.00
Rates=$980.00
Ins= $395.00
Property Management = $796.00
CAsh in = $4,900.00 … we only put in $950 ourselves as it is a JV!) + bank funded the remainder (95%)
Nett rental return is $1716.00NETT COCR (cash on cash return) = 35%
Which is a total return on investment of 2.85 years!
Compared to the bank offering 7.5% (Cash on Cash return) you would see the return on your investment in 13.33 years.Now our actuall investment (our hard cash) was $950.00 so the return on our investment is 180% so our return is in 5.5 Months!
That is not even considering capital growth if it happens…
so the bonus is if we were to get 3% capital growth over 5 years then the realsale price would be around $111,003.
The nett profit would be $32,005 … so if you divided that by the average (5 years) then you would end up with $6401 + $1716 (nett rent for 1 year) = $8117.00.
This would mean that average return over a 5 year period would be 60% nett Cash on Cash……
Not bad for an NZ average house in an area thath te bank thinks that 95% lend is not such a risk.
Best of luck to all you investors out there.
[exhappy]For 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizYou can also try
http://www.homepriceguide.com.au/Or for NZ properties
you could try:
http://www.qv.co.nzor
http://www.terranet.co.nz/enter/real_estate_for_sale_new_zealand.htmCheers
KiwiFor 15%+… Cash on Cash Returns goto:
http://www.kiwilogic.bizOriginally posted by westan:Hi Kiwi
But we all know that markets move in cycles, NZ has had great appreciation and has followed the Aussie market, with a few year lag.
One of my many concerns was that as in Aust when the market started to top out that buyers disappeared then the market headed south. I know countless people who have held on to properties in aust. that have lost 10’s of thousands and 100’s of thousands in some Sydney cases from the peak of the cycle. There is no harm in selling while things are good, because we know that the market will change. If people aren’t in for the long haul then selling might have been a good option. I know some parts of NZ the market has already Stopped and there are an absense of buyers. Those people may be stuck with properties for a long time.
HI Westan,
Your comments above are weighing toward the exact sheep that buy for greed and speculation …. and to compound the problem they only know of one may to make the yeilds or COCR returns work… and that is renting the house out!…, rather than positive cashflow and capital gains as a bonus and then diversifying the portfolio. (there are many more lucrative returns using other methods if renting does not work with the number crunching process) If investors looked at a cashflow approach + a property in a potential growth area as part of thier criteria then if the market softens and slides down to a negative growth stage…. then thier investments are safe as houses as they are not effected due to cash coming in supporting the foundations of thier port folios. If they have focused on growth with little regard to yeild, fixed interest rates and end result of positive cashflow…. and are hurting in a down cycle… then I am happy to purchase off them to take the burden off them so they can move onto greener pastures
Best wishes,
Kiwi
[baaa]
15%+ Cash on Cash returns goto
http://www.kiwilogic.bizHey Westan,
I am happy you have made a motza of cash[biggrin]…Many people use different strategies and I respect that as we are all on the different path of success.
NZ still has good merits though:
– NO STAMPS
– NO Capital Gains Tax (if you are set up right)
– Low Unemployment
– Good thriving communities and economy
– People in need of solving their everyday financial problems
– Good yeilds (above 10%)I understand that there are people concerned about exchange rates etc…. so …. get your finance in the same country as you invest to mitigate that risk [biggrin]. I have always enjoyed NZ as it is my homeland… The people are great and the lifestyle rivals many other wonders of the world!
I was not saying that you were a sheep….. however many people follow blindly those they believe are successful in thier fields.
Best of luck with your endevours!
Kiwi
[baaa]Originally posted by Terryw:Kiwi
So your saying you sign an option, ie buy an option, then negotiate with the new on-purchaser, but they do not see your purchase contract or realise what you paid for it. Do you then re-assign your option? Wouldn’t they other party see your purchase price on the option?
Terry, Yes they see the contract but there is no price and no purchaser listed …. I write in the price that they agree to pay (They initial… and I get hte owner to sign the contract and simultaniously I will excercise my right to excercise the right ot nominate a purchaser for the contract.
So I am not hiding anything in the contract as they are signing/filling in the original that will go to both parties for exchange of contracts. If hte buyer is happy with the price and hte seller is happy that the house is sold … end of problem … a solution is found.
End of the day options are so flexible and can be very complex or simple as the challenge arises…[biggrin]
Cheers,
KiwiThe new purchaser dos not even see my option as it has nothing to do with them as is directly with the purchaser. I sign nothing but the original option. The seller then arranges the contract to go out to the new buyers solicitor (once he receives a holding deposit of course). Then the sale proceeds as normal and the sellers solicitor make me out a cheque from the proceeds with the difference between my option price and the new price….. Simple!
Sometimes I will give the option directly to a buyer for a fee also…..
As for duty of care …. I am not an agent and I am not a banker or broker … Only a private seller…. Since I have the option on the property … I have a financial interest (partial ownership via option) in the property…. this means as per the law….. I have every right to privately sell what is mine to anybody I please….. It is just like selling my own home … gotta love it .
Kiwi[biggrin]Quote:Originally posted by Qlds007:Kiwi
Hate to say you could not do it that way.
You choice is that you either settle on the low price pay the stamp duty and the have a new contract for a higher price which your buyer signs and then he will not be able to find out what you paid for the property or you exercise a Put & Call Option and get him to sign the original contract.
No Vendors Lawyer worth his salt is going to increase the original purchase price and pay you a cut of the sale proceeds unless you have an agreement with the Seller that you will receive a commission on the sale. Dangerous ground as you may need to be licensed depandant on the particual State you are operating in.
If this is the case then why would the original Seller not increase the price and sell it a higher figure.
Hi Richard …. interesting that you can’t do it … That means I have not done it at least 6 times [biggrin]
One of them I actually forgot about and all of a sudden received a check from the Vendors solicitor. It is not a commission that I am getting paid as I have control for a price of $X and then find a buyer that is happy to pay $x+ $y.
As the contract (which must accompany an option to hsow what legal possession was included in the option) was drawn up with no final sales price and was not signed by myself or the buyer untill I Gave written notice of my intention to assigne the option…… “no Stamps are due by me as I have never owned the proeprty … only controlled it….
Any how …. I could go on and on for a hundred yeasr …. if it can’t be done … then I guess you are correct.Basicaly all I have to say is you can do this with any kind of property… Bikes, Cars, Wine bottles etc (anything that has a value that someone would like to have the opportunity -but not hte obligation to purchase for a mutually agreeable price and by a predetermined duration… you name it and it can be put up as an option…
Cheers,
KiwiHey There,
Residex!
http://www.residex.com.auHi There,
Some good points on both sides…. I like the fact that we all have different opinions and views….. That is what makes the proeprty cycle go round…. those that pull the pin when the other sheep start bleeting”(noise sheep make when they are looking for thier young!)…. and those that know that if they stick to what they know then they will also make great profits out of a market that is going backwards or flattening sideways.I believe that as the sheep follow the herds of media around baying about market booms and busts in realestate…. then the seheep hear that hte Share market is doing well and they move to the greener pastures there…. then that investing market goes bust …. then the sheep move to Commercial property…. and then back to residential again…. (over a period of years)….. I think this is FANTASTIC!!!!
Why?
Because over 75% of investors of any vehicle(Bricks, Shares or Business property) …. Eitehr LOSE Money … or at best break even. This is usually a very painfull experience and they just vow never to go through it again. – However there are still more sheep to fill the pen as it empties… so the opportunities continue no matter what!!As soon as the market shifts down 5% or so, the media need to sell papers, (and see an opportunity to sell more this week) they bleat about the bust is coming!! (Henny Penny the Sky is falling)….. however this could only be a blip on the radar…. Ths make the inexperienced investor worry so much that they make a financial decision to pull the pin!!! this has an effect as the more peopel they coe in contact with they tell the same story (Bust… Bust Bust…) and before long house prices are adjusting negatively.
Another interesting opinion is that less than 4% of the world pool of property investors own 5 or more properties!…. This points toward the nature of humans to have it all now and if it is boring (Which property can be most of hte time) they ditch it for some more stimulating and Exciting investment strategy.
The biggest error Newbie investors seem to make are:
Not Limiting exposure to:
– Interest rates
– Vacancy
– Malicious Damage
– Over inflated buy price
– Hidden faults in property that can cost a packetNot Having (and Sustaining) the focus, fortitude, mental toughness and ability to continue to delay gratification.
Listening to the media nad any other soap box speakers without thoroughly investigaing all aspects of the industry and making a well informed decision to take a position in the market place…….
Best of luck all with your endeavours!
Cheers
Kiwi[strum]Would be more of a win/win if you did a lease option. This way she still gets to claim all landlord costs and you get to build a deposit via rent crediting a portion of your rent.
Just a thought!No Wukkas!! DLPP
Cheers,
KiwiYou could do a 3 month Lease Option. Then a 3-4 month settlment period to get it within your time frames.
Cheers
Kiwi
