Hi Linda, thanks for clarifying that issue for us. I have never heard about the .25% thing. It is very hard to ask the REA the right questions when you don’t know what to ask. Many would not bring this clause to light in the hope that a better offer comes past, and it must always be remembered that the agent works for the seller. You will be a…[Read more]

GEEZ!! That is a much better result. Handy to know. Thanks for coming back and updating.[thumbsup2]

kjs

So while the rent in Darwin sounds good against your loan repayments, it is a poor % against the actual current value. Would you expect further capital growth? Can you get something in Brisbane that you could maybe tweak with a reno for better return? Darwin may have just gone up with the rest of the country, there is a lot of talk about…[Read more]

I remember leaving a small deposit as a good faith type thing. Can’t remember, but it was supposed to show you were being serious. That was in 1988 on a house in Wodonga Vic, and also on a block of land in 1998 in Wagga. The house I went ahead with, but the block of land I didn’t, and was worried I may have lost my deposit, but they paid it back…[Read more]

Don’t forget that real estate agents like to “condition” people. If you are looking for 8%, and he conditions you to expect 4%, and then can present a nice little 5%, you will feel warm and fuzzy and stop looking for 8%.

I don’t know much about yeilds in different areas, and the other people answering here are most likely in the ballpark, but…[Read more]

Beware of regional cities/towns with dependance on one or two industries, unless those industries are stable or have good future prospects. While WA is booming, it may not if mining has a downturn??? (don’t know much about WA). Another example would be where there are military bases, and Govt policy can change, and there is downsizing. There could…[Read more]

Sorry if I seemed a bit blunt [blink]. I do worry that some of us feel like we are failing when really we just don’t have the resources at the given time to do what these huge success stories have done. We are doing the best we can, but while doing something is better than doing nothing, sometimes that something is cashing up or consolidating. You…[Read more]

The richard taylor here has a lot more than 3 posts. Doesn’t sound right to me either.[grrr]

kjs

The thing to remember about the average teacher is that they have never left school. School to university (another word for partying) and then back to school. Many never worked with the public, have ridiculously long holidays (and tell you how they have to work all holidays making up plans for next term/year -right!), they work from about 9 -…[Read more]

In my very limited experience, a builder will rarely give you a good price before he has completed. By coming to him before he is completed you look real keen. That converts into top price. It might be worth talking to him but showing little interest, and then see if he is actually selling. Once the place goes on the market then you would be maybe…[Read more]

Yikes! I will be betting that they want some cash up front for fees, insurance, valuations, something, anything. Kiss those fees goodbye! They will most definately want to tickle your bank account as much as possible.

The amazing thing is that these schemes keep going around because they keep finding suckers.

kjs

NO – in my opinion. Relatives and friends are a bad idea when mixed with investment and/or finance. This sounds like a really good way to completely ruin the relationship with your parents down the track. If you need to sell the house, and/or can’t buy another place and you get stuck there, oh dear. A married couple need their space. They will…[Read more]

I like terryw’s explanation. It was good and clear.

The thing with paying off principal is that yes, you can borrow the equity, but either you need to get a second mortgage on the place, or have a new bigger loan. It all costs fees and mixes up the money. If you take the deposit for the new property from the offset account you may even have over…[Read more]

Hi, just read your stuff for the first time. Good on you for going back to work.

In a flat market, and 3 years is a short time, you may find the costs of buying and selling may be more than any capital growth. The market is in a flat part of the cycle. You need also to look at what you have to put in to make up loan payment, plus are you going to…[Read more]

Wow, that is one tiny place, what a challenge. Very neat and tidy, but there was not much you could do to rearrange the kitchen. It is nice to get a job completed, and I hope it has added plenty of value. Thanks for sharing.

kjs

Hi Bessie, HOW RUDE! Might I suggest that you ask the agent straight out if he did his homework properly as you find it very rude for him to say the market is now 75k lower? Did he really have no knowledge of the market when you signed the line? Don’t be afraid to be assertive, these people thrive on bullying. Maybe you should ring the principle…[Read more]

Shares – mmmmm. I must say that trying to pick growth stocks is a terrible gamble. A small window in my experience – 3 “growth” stocks that were showing a 98% loss in my commsec position statement a few weeks ago. Scary. I would challenge even the worst Sydney property story to show a 98% loss! I am talking about one stock being 10% owned by Gerry…[Read more]

Auctions! No one is mentioning how emotionally ready a seller is to sell on auction day. I have been a seller and if my husband had not said no, I would have agreed to a price about 25% lower than market. Instead we sat back for a bit (the house I wanted to move to sold a week before auction anyhow), and within a few months we listed with another…[Read more]

If your property is returning 4.5%, how does that compare to your current costs? If it already has had capital growth then your actual current costs may be less (any depreciation? which can help actual cash flow but is not a physical cost), and you may be positive cash flow even though the return doesn’t make the magical 10% we all dream of.

The…[Read more]

Looks like not a bad property, but advertised very badly. Is it 4 bedrooms total? 2 up and 2 down?or 4 up and 2 down? 1 bathroom? if the self contained flat has its own bathroom it must be 2 bathroom? As I said, very badly advertised. Obviously a very busy agent that leaves the listing to the trainee in the office? I would be very upset if this…[Read more]