Forum Replies Created
You’re 25 and earning over 100k? Stop it – you are making us all jealous!!
Together with your wife’s income (I’m assuming she has one here) you should be able to save a deposit in no time if you don’t blow it all on ‘doodads’. Of course, the cost of the house you want to live in will be a critical factor.
If your loan permits it, paying off non-deductible mortgages/loans should be your first priority in my opinion. You want to minimise your personal debt as fast as you can to save on all that horrible non-deductible interest (own home and cars etc). While you are living in your unit the interest is not tax deductible.
This will accelerate your equity in your property, and help you with the LVR on future loans for investing.
It may be adviseable to look at setting up a split facility line of credit loan when you are purchasing your PPoR – one sub-loan for the PPoR and one sub-loan for the I.P. this makes the accounting part easier.
To answer your question; I think you need to get professional advice from a suitably qualified accountant regarding the buy/rent back strategy. I know people do it with commercial properties – they buy a property and rent it back to themselves through a company structure or vice versa, but I don’t know finer details.
You can do a Joint Venture with your family member – they provide a percentage and so do you and the income/expenses are allocated to each party according to the percentage split. You shold be able to source a JV contract through solicitors or even from this site.Cheers,
Marc.
[email protected]Originally posted by Roofarmer:Hello,
I’ve been offered a chance to invest in a pay day loan company for very good weekly returns on my initial investment.
Aside from the inherent risks involved just wondering how people would feel (if in my shoes) about investing in something like this. I tend to think that it may be a little immoral (profiting off others misfortune) but I am open to other people’s oppinions.
“Most people operate under a false ceiling which is 3 feet high” Stuart G Goldsmith
As you may guess, I live in L.A and these businesses are everywhere! The operators don’t seem to have a problem morally or otherwise running them, so I guess it is a personal choice. It’s a bit like owning a massage parlor I suppose? If you can sleep at night and you like the numbers….
Cheers,
Marc.
[email protected]Originally posted by tom1000000:Hello,
I was just wondering about an issue with contracts.
Basically you normally make an offer.
If the vendor accepts they send you a contract.
You then sign it and return to vendor.
What stops the vendor from sitting on your signed contract? They might decide to hold out for a better offer etc… You could provide a deposit cheque but again the vendor could just sit on it.
Your signature is valid forever right? So you could be possibly forced to proceed any time the vendor decides?
When signing contracts is there a way to ensure the vendor acts quickly? I wouldn’t want to sign a contract and wait a month or two for a vendor….. or worse the vendor turns around a year later with a signed contract and demands you proceed….
You can ring the agent and say the offer is withdrawn at the end of today’s business unless the vendor accepts/rejects the offer. That usually gets them and the vendor moving.
Through trial and error (mostly error) I have found that I can write whatever I want in, and scribble out whatever I want from any contract which is presented to me (especially real estate transactions).
The agents are horrified when you start putting lines through their forms!
When I first started in this game I did not realise this was possible, and was a bit intimidated at the site of any sort of contract. Now I know better.
You can put whatever you like in your offer to purchase, and write or delete any part of the ‘standard’ contract form that the agents want you to fill out. Of course, if you strike it out, you then have to get them to agree to the change (they will usually fight it).
A good guide for written offers is something like this:
” I, xyz purchaser, present this offer of $xxx to purchase xyz property from the Vendor. This offer to purchase will expire at 5.30pm on November xx, 2006. The Vendor of xyx property will accept or reject this offer on or before the above date by signing this contract, or the offer will be withdrawn.
Make sure every offer includes the clause “subject to finance from xyz bank for xyz amount within 21days of the Vendor signing the contract”. That always gives you an out.
Once you have done a couple of these you will never be intimidated by a contract again. You will be empowered and confident and in control of the transaction. After all; they want to sell the property.
Have some fun with it.Cheers,
Marc.
[email protected]Originally posted by bessie:Hello , I am after a bit of advice. We have our property on the market at the moment. The agent who put the valuation on it is now telling us it is not worth this amount. [stun] That has annoyed us as he should have been honest from the start.
He has phoned us back with an offer 75 thousand less than what it is on at and is telling us this is the best we will get.
Our 60 day exclusive agent contract ends very soon but 5.2 of the contract has the appointment will continue as an open listing until sold !! [worried]
Does this mean we are tied in forever !!????? [ohno2]
I get the feeling he is trying to run rings round us. Can we take it off the market and if so do we have to pay all the fees or just the advertising costs??
Please help and yes we should have been a bit more careful. Lesson learnt!!
Hi Bessie,
unfortunately this another classic case of ‘conditioning’ where the agent quotes high to get your listing, then tries to ‘condition’ you over a few weeks to get you to lower the price from his/her quote and your expectations to what the house is really worth.
The good news is as mortgage hunter says – just write a letter informing the agent that the contract is ended.
The bad news is you are liable for all the ad costs
If you are still looking to sell the property, make sure you sign another agent with an EXCLUSIVE listing next, for 30-45 days max, and no ad program (the agents hate this as it is another income stream for them) – the buyers are already out there trawling the streets looking for ‘for sale’ signs, looking in the agent’s windows and websites.
Probably a good idea to spend a few hundred on a bank valuation before appointing another agent to sell it. That way you will know what it is really worh and you won’t fall for tha agents’ quoting games. Don’t tell the agent what the bank valuation is – this will give you an idea how honest he/she is when they quote you a sale price.
Look at the Neil Jenman website for more great advice on how to handle agents when selling your property..Cheers,
Marc.
[email protected]Originally posted by Ash75:I’m selling my first property and am appalled at the real estates commission. It appears that the going rate is 2% which equates to about $6500.
Is this the standard throw away line for the inexperienced?
Should I consider alternative selling options?
What are they?Your advice would be appreciated.
[biggrin]
Unless you have the time and are close enough to conduct a selling campaign yourself, there is not many other options I’m afraid. I have sold a property on my own; it was a pain it the a***. Most of the enquiries were agents trying to tell me how good a job they would do of selling my property. I saved a few thou, but the personal time I sacrificed to sell it was nearly the same amount. Lots of tyre-kickers.
A couple of tips though;
1. get the property valued professionally by a valuer first (your bank can provide one) for a few hundred dollars- don’t use an appraisal by a r/e agent to assess the value. Don’t tell the agent what the valuation was. This way you will know what the property is really worth, and you won’t fall victim to the agents’ over-quoting games to get your listing. If the property is the right price it will sell very quickly.
2. don’t tell the agent your bottom line – they will tell the purchasers to offer that much just to get the sale through quicker. In fact, after the valuation; tell the agent not to contact you until the price you stipulate has been met. That way you won’t get ‘conditioning’ phone calls every few days to try to get you to drop the price.
3. tell the agent to pay for any advertising they want to do (they hate that). Basically, your potential purchasers are already out looking, so as long as the property is listed in the agent’s window and on the internet, the buyers will see it. Don’t get sucked into the big advertising campaign that the agent will try to sell you. It is amazing how many agents say “we have a list of potential buyers waiting” then try to get you to spend thousands on ads. what the?
4. if you like to have fun, tell the agent if they try to sell it below a certain figure their commission will be 1% (or none), and above a certain figure the commission will be 2.5%. Put this in the agent’s contract. Or, offer them $5k flat rate whatever the sale price. It is up to you and make sure it is written into the contract how you want.
5. tell the agent what price to list the property for – not a price ‘range’. for example; you want $250k, they may try to advertise it as “$220k plus”. the only offer you will get will be $220k or even worse; $200k by a hopeful investor like me!
If you leave it to them they may try to advertise it as a price well below what you want, which will only attract buyers who can’t afford the property. Then they will try to get you to ‘meet the market’ and drop the price.
6. last of all – give them only 30 or 45 days to sell it with an exclusive listing. They will hate this too and try to get a longer selling period. This will keep them working to sell it. A long selling period allows them to have the property listed with them for longer, and makes their ‘inventory’ look more impressive. But they will lose interest after a month or so if they can’t get you to drop your asking price, and may even use your property as a ‘bait and switch’ to sell another property.
You are probably thinking my opinion of agents is low? Correct! Some are good though, but you want to protect yourself.
For further info on how to handle agents, look up the Neil Jenman website. It is great, and so are his books. they will save you a lot of money.
good luck.Cheers,
Marc.
[email protected]Originally posted by Mortgage Hunter:Originally posted by L.A Aussie:Hi Simon.
Fair enough I suppose. My post was a bit oversimplified, but would you buy $100k of shares without insurance though?
Also, have you ever bought $100k of shares with no money down? I haven’t – I’m not brave enough, but I will do it all day long with property.
The main point of my comparison is the relevent risk/reward factor between the two, based on a more tradition form of purchase structure i.e; standard bank loan (not the more sophisticated strategies such as warrants etc).
Yes, both investment vehicles can be bought with no money down, but only property can be insured against catastophic loss (not capital loss) whereas shares can’t as far as I know.
This is often overlooked by people when comparing the performances of the two. Many people say shares outperform property and vice versa, and I own both vehicles of investment, but prefer the comparative safety of property while still getting excellent returns (sometimes).
I’m afraid I like my sleep too much.
Speaking of buying shares with no money down; would you like to share a few of the strategies for the rest of the gang here?
Cheers,
MarcI have well over $100K worth of shares and managed funds with no insurances in place.
I have been in shares for 15 years now and have never experienced an event such as HIH or ENRON in any of my companies. Likening those events to all Bluechip shares is like saying you wouldn’t buy proeprty because of the tidal waves in Indonesia or the Earthquake in Newcastle.
Just as an example of a 100% leveraged exposure to shares with 100% capital guarantee look at this page.
http://www.macquarie.com.au/emg/mq/comets/comets_home.htm?source=fsg-adviser
It is no recommendation – just an example to open your eyes to what might be available. It is just one of many sophisticated vehicles open to everyone.
I personally use a 50% LVR Margin Loan to buy and hold shares. As a result of owning CSR I was given RINKER shares at a nominal value of $5. They certainly cost me less than this as the CSR shares recovered the $5 drop pretty fast. The RINKER shares are now worth $18 and were as high as $22.
They cost me no purchase costs, no stamp duty, no maintenance, no tenants, no PM, no neighbours etc etc.
Using my nominal purchase price I am being paid
Lets extrapolate this one share out to similar ratio as an IP.
I bought this “IP” for $50K a few years back. I paid no buying costs or borrowing costs. I pay 8.5% interest on the loan if I had borrowed 100% then this loan would be $50K – $4250pa interest.
I have not spent a single cent on it since.
I have a very liquid market that I can sell this IP into. Today I have an offer to buy this property for $184,700 and can sell it in a matter of minutes for a very low fee. Well under $1000 I think. No negotiating or agent needed. No legal fees or inspections to worry about.
I am earning $7800 pa in “rent” for this property. This “rent” comes with Franking Credits meaning that some company tax has been paid on the rent so I get a tax credit on it.
Now obviously this was just an exercise to prove my point and not all companies behave in this manner.
But nearly all the Blue Chip Shares I have did. CBA floated for about $6 and is now trading in the high $30. Woolworths floated for $2+ and is now around $20 per share.
Tell me which IPs have grown by a factor of ten in about ten years?
The aim of this little exercise was to perhaps change the view that Shares are dangerous gambling as opposed to the “safe as houses” mentality that so many of us have.
I found out whilst I was in the Army that most fear is based on ignorance. Once you have some training, education or experience then confidence builds and much of the fear evaporates. Jumping out of a plane is less terrifying to a qualified parachutist than it is to someone who have never tried it.
So if you fear shares then you may conquer that fear by learning a bit more about how it all works. Once you know a lot then make an informed decision.
But to blindly say shares are bad ie HIH and Enron is naive at best and denies you a lot of opportunities. Some believe that a sharemarket boom follows a property boom (as is the case now) so why halve the amount of booms you can invest in?
All the best,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for that Simon,
very informative. Don’t mention your good fortune to the Emron shareholders though. And you supported my arguement – you have over $100k invested with no net. You are braver than I.
I didn’t say shares were bad – I have some also. I said there was more risk/reward with them compared to property, with the rewards from property still good and with less risk which is important to me.
I agree with you; more education (In shares) lessens the fear and improves the decisions and returns. I certainly need more education.
I don’t fear the shares – I fear the guys who ‘run’ the companies. It is a factor I can’t control. I guess I’m a control freak?
Did you use other equity or cash to make up the balance of your 50% LVR Margin Loan to buy your shares?
Do you leverage against the capital growth of the shares you quoted to buy more of them, or do you sell some off to free up the funds to buy more – what is your strategy there?
Do you have a ‘ceiling’ for any growth in your shares before you cash them in or do you look at them as ‘buy and hold’ indefinitely?
What is your philosophy?
I’m enjoying this! It’s good to find someone with some extensive knowledge on the subject. The only people I’ve met so far with knowledge are usually trying to get into my pocket.Cheers,
Marc.
[email protected]Originally posted by crashy:I put an offer in on a house on Sat. Agent called me today & said “the owner rejected your offer & did not countersign, we have other interest parties”.
I said I wanted a 2nd look before I revised my offer. On the 2nd inspection, I noticed the concrete stumps were crumbling & the house was sagging a little in the middle.
I figure this is good and bad news. The bad news is I need to spend $15k restumping, the good news is this will scare off any other buyers…or any time spent with other buyers would be a waste as building & pest inspections would cause the deal to fall through.
I said I was leaving my offer as is, and Im wondering if I already offered too much.
Am I crazy? should I run a mile? Or am I in a great negotiating position?
http://www.posigear.8k.com
Positive Geared Share InvestingIf you had offered too much they would probably have accepted the offer. If you think you have offered too much then simply withdraw the rejected offer.
The old saying “the deal of the century comes along about once a week” should always be in the forefront of your thinking when you look at a good deal.
If you are totally unemotional and have made your offer based purely on the numbers (as you should) then you can either say to the agent “thanks and I’ll take my money elsewhere” – the agents always have “other offers”, or you can simply leave the offer on the table for them to ponder over.
Either way, if the house doesn’t get sold after a couple of weeks I can guarantee you that the agent will ring you to see if you are still interested. THEN you can renegotiate the offer a little more.
Were you thinking of lowering your offer after seeing the concrete stumps?Cheers,
Marc.
[email protected]Originally posted by Bo_D_:Originally posted by L.A Aussie:Hi Simon.
Property can be insured against catastophic loss (not capital loss)whereas shares can’t as far as I know.shares can be insured, however its very expensive and most will only let u pick from a list of shares. And then the company has to fall by at least 10% i think.
Is it worth it? Unless u think a blue chip is going to drop 10% then no.
I never knew that – is that form of insurance available for property as well?
Back to the main thread; any company that publically advertises a return of 11% guaranteed (property or shares) would raise a red flag in my head and make me wonder; “why aren’t they doing it and saying nothing to anybody?”.
I guess my point to vyaw2003 was you can still get the same return without any of the risk. I assumed he didn’t know he could get better than 7% from property without too much trouble.Cheers,
Marc.
[email protected]Originally posted by vyaw2003:if you buy a 100k house with no money say it returns 6% after costs, then NO you do need money because the returns dont cover the 7.5% interest rate.
True, but if the return was only 6% against a 7.5% interest rate I wouldn’t buy it. My calculations on return take into account the interest rate as part of the expenses. It is the NETT return I am interested in after all the gains are calculated, minus the expenses.
If the property runs at a loss every year it is negatively geared, but that would be deducted from the capital gain to give you the overall return. It could still give me a good return. Some investors willingly take a negative gearing position, knowing that the capital gain will be good in the short term as was the case here in L.A the last 3 or so years.
If it negatively geared and makes a capital loss after one year, I have made a bad investment – I wouldn’t knowingly take that position.Cheers,
Marc.
[email protected]Hi Simon.
Fair enough I suppose. My post was a bit oversimplified, but would you buy $100k of shares without insurance though?
Also, have you ever bought $100k of shares with no money down? I haven’t – I’m not brave enough, but I will do it all day long with property.
The main point of my comparison is the relevent risk/reward factor between the two, based on a more tradition form of purchase structure i.e; standard bank loan (not the more sophisticated strategies such as warrants etc).
Yes, both investment vehicles can be bought with no money down, but only property can be insured against catastophic loss (not capital loss) whereas shares can’t as far as I know.
This is often overlooked by people when comparing the performances of the two. Many people say shares outperform property and vice versa, and I own both vehicles of investment, but prefer the comparative safety of property while still getting excellent returns (sometimes).
I’m afraid I like my sleep too much.
Speaking of buying shares with no money down; would you like to share a few of the strategies for the rest of the gang here?
Cheers,
MarcOriginally posted by APerry:Asset Loan are a public company, go to their web site and get a copy of their annual report and you can make your own mind up re their stability. They are a short term aset lender, as suggested by their name, with ratesstarting from around 3% per month. They don’t lend at high LVR’s, I think 70% is their max.
Regards
AlistairWestpoint, Emron, Worldcom were public companies too. I like property; it’ still there when you wake up in the morning. If it isn’t, I ring the insurance company.
Not only that, I can buy 100k of property with no money (other equity), can’t do that with shares, bonds etc. Any return on no cash input is an infinity return. That’s hard to beat. I don’t know where the 6-7% return figure comes from.
The whole return figure should be based on your CASH input into the deal.
One more thing; if they are offering 11% return on your CASH which is only good when you compare it to a bank deposit, ask the salesperson how much they have invested in the product they are selling. The answer will be interesting. Ask for their proof if they say they are invested.
As for ‘guaranteed’ security; Westpoint offered guarantees from an empty company.Cheers,
Marc.
[email protected]Originally posted by swiftos:Hi
My opinion is to look at why you are investing in the first place. If your aim is cash flow and you dont mind not getting capital growth then regional areas are great in that they will either cover your costs or cover them and give you some left over,or positive cash flow.
I have properties from 1000 people towns up to 10,000 and have had only minor problems. My keys are to make sure that there is an agent in town who can manage the property, be wary of properties where the agent says I wont manage it!! Stay away from them.
also be aware of properties where the agent does multiple jobs as their interests could be somewhat biased or miscued.
I think tenant problems are perceived (incorrectly) to be more likely in lower priced, lower class, and maybe rural areas. Not so.
I once had a brand new, gorgeous townhouse in a high rent area (good cap growth area too). The first tenant was a working mum with 2 kids. Always paid the rent, but they were nightmares and upset everyone in the complex. Glad to be rid of her.Cheers,
Marc.
[email protected]Originally posted by swiftos:Hi Dan
I run a buyers agency in South Australia that looks for positive cash flow properties all over Australia.
I personally have bought 10 properties in the last year but I am doing so in the knowledge that I may not get any capital gain as they are largely in rural areas, although I have by accident got some good capital growth.
Thanks
SimonThanks for that Simon; gives us all more confidence. Personally, I don’t mind cheaper, high rent return properties as I can buy more without sacrificing my dollars. Who wants to have to keep working to service n/g property? I want to get out of the rat-race asap and let the properties pay me (nearly there).
My only fear with ‘rural’ areas is the (perceived) lack of tenants in these areas. What is your experience with that? I have until now stuck to more ‘regional’ areas; bigger populations, but not cities.Cheers,
Marc.
[email protected]Hi All,
just read Marissa’s post and thought of this question;
at what point in your investment life do you start to buy property in the name of a trust, or discretionary trust, or entity other than your own name/s?
We have 4 I.P’s all in our names, each time we purchase I ask the accountant how should we purchase it, he says at this stage it is better to be in our names for the tax benefits.
My concern is the asset protection aspect – I would like to be distanced from the assets from a litigation/bankruptcy aspect etc, but still retain all the benefits. I want my cake and eat it!
I have a company and a family trust; both inactive at this point in time, and I understand that tranferring the properties into our company name and/or trust fund would incur stamp duty, so I’m not interested in that, but what about future purchases?
Any advice would be appreciated.Cheers,
Marc.
[email protected]Originally posted by dutchie:With the council spending many million on the new beach front and shopping centre, add to this the new Mitcham freeway, property prices have become stagnant and in some parts down 10-20%, what are your thoughts about Frankston.
You can still pick up some great buys there and I think they are the last of the coastal cities that has not really seen the boom!!!
We are originally from Dromana, and own property in Frankston as well. I agree totally. It is squashed in between Mt. Eliza and Seaford which have both boomed and have become ‘gentrified’. Frankston has the stigma of low-socioeconomic area at the moment, but infrastructure is great and as you say; the Marina and the freeway will change things a lot. It’s only 45 mins from Melb. It is lifting its game!
Also look at Dromana – booms either side, good infrastructure/views and the Marina up the road. It is a forgotten jewel; but not for much longer. Lots of development going on now, very limited land available – especially with bay viewsCheers,
Marc.
[email protected]Originally posted by Freetolive:I’m looking at a few houses tomorrow and I need help!
What I need is help in not BUYING A DUD!!
a) I’m looking at the worst houses I can find in a nice area that I know how much the houses have sold for.
b) I’m doing it for a reno and rent deal.
c) I’ve heard that bathrooms are expensive to fix. What should I look for?!
d) I’m going to put “Subject to Structural Report and Pest Inspection” on the O&A but should I put anything else on it?Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
First, if you have been doing your due diligence you (should) know the values of the land/houses in your chosen area., so have confidence in your decisions. Fear will paralyse you.
Next, relax and have fun. You are not obliged to buy anything tomorrow (of course, the agent will tell you “there are multiple offers so don’t delay”; yeah, yeah, yeah, blah, blah, blah).
A good idea is to select maybe 10 possible properties, then try to look at maybe 4 or 5 on the day (that’s more than enough) plus, after this you will have trouble remembering details unless you take notes and photos of every one. Then select 2 or 3 as a shortlist, and go back for 2nd inspections another day. Don’t appear too eager to the agent, but be ready to buy. Have you arranged finance already? If not, at least get pre-approval from the bank asap.
With bathrooms, look for stains, watermarks and rot. Check all the taps for water quality/flow. Flush all the toilets.
Your building inspection should reveal other surprises you can’t see.
Bathroom renos can be very cheap – I did one in a unit I own for $500 and it looked great, but I did all the work myself, and it was a cheaper unit so I didn’t want to overcapitalise. As a guide, allow about $2-10k as you may want a totally new one and there will be plumbing & electrical as well. If it is a really nice area with quality properties you probably should spend more, not less. Most buyers/renters look at the bathrooms and kitchen as an important feature of the house.
Don’t forget to put in ‘subject to finance from XYZ Bank for XYZ dollars within 14 (or 21 days if you can) of the VENDOR signing the contract.
If you are trying to buy a ‘clunker’ look at land value first, then calculate what the house is worth on top of that to determine your offer. eg; If a brand new 25sq house in that area costs $12k p/sq to build ($300k), what would the 25 sq house you are buying be worth now – maybe $3k p/sq ($75k)?
The construction cost is usually closely linked to the quality of the area. New “Jennings” type estates have cheaper houses than architect designed purpose built in a high end suburb.
If the land is 1,000 sq/m and is $200 p/sq/m ($200k) then the offer is $275k.
Take your checkbook with you and see how low you can get the deposit to be – I try for $500. Agents laugh at this, but usually $1,000 will do it and add inyour written offer that the balance of deposit will be after all inspections have been to your satisfaction. Then, the property is basically off the market until you do all your research/inspections. If you offer a short settlement (30-40 days) it allows you to get to settlement without having to come up with a big deposit.
The agents will usually try hard to stop you from doing this as they want their commission asap, but it is your offer so do what you like. It is up to the Vendor to agree or not with these terms.
Once, I was due to pay the balance of the deposit 1 week before settlement. I rang the agent to tell him I was coming in with a cheque and was told “don’t worry about it now -settlement is next week”. So you can be lucky!
I find that if you are making a reasonable (dollars) offer with a short settlement the Vendors are very receptive. If you try to low-ball them, then offer low deposit with long settlement, they usually reject it. Generally the Vendors aren’t too concerned by the deposit – they are concerned with selling the house; the sooner the better. The agent is the only person concerned about the deposit.
Good luck,Cheers,
Marc.
[email protected]Originally posted by andrew_dc:Hi all,
I am just about to puchase an IP. I am the sole income earner in the family – my wife looks after the children.
If I purchase the IP in my name then I get the “benefits” of negatively gearing the property against my income but when I sell the property I will be paying capital gains tax at the highest marginal rate.
Alternatively if I purchase the property in my wifes name we will benfit from a capital gains perspective (assuming a successful sale in the future) but will not be able to write off the loss (rent v’s interest on loan) against her income.
What I am thinking of doing is purchasing the property in both our names (allocating 99% of the property to me and 1% to my wife).
MY QUESTION IS can I do this and before selling the property in the future change the ownership of the IP (to 99% my wife and 1% me) thus getting the best of both worlds…
I would appreciate the advice of any experts out there – as you can probably tell from this question I am new to the investment game.
Best Regards,
Andrew
My question is: why sell it at all? why not keep it forever and use the increasing equity to fund other income producing assets?
Cheers,
Marc.
[email protected]Originally posted by Munno:Thank you all for your advise. Answer to all your questions are as below:
v8ghia,
1.The person who represents me is conveyancer. He is very particular about his work and is straight to the point guy. No Bull…..
2.I am in NSW.
3.The example you gave is the reason they advised us for not being able to settle. How could that happen. Everyone knows where they stand with their finances and figures. How come two days prior to settlement they know about this. I just don’t get it.
4.Contract sates 14 day notice. Failing of which, ball is in our court. Well, it still is.
5.The word “renovation†use by me is not appropriate. What I meant to say is, I already have kitchen ready to put in, and few other things which I got it measured and ordered so that it could be put it straight after I get keys.Terry,
Thank you for your broad explanation. I got the picture. Thanks again.
Elka,
Lets see what happens. Your question is answered in my answer to v8ghia’s questions.
Marc,
Good suggestion. At the moment, this whole thing has given us a very disappointing stroke and we are very depressed. Not sure if we every dare to buy property again.
One thing I have experienced in RE industry, if it goes wrong it leaves life time impression on your mind. Oh, and there isn’t much of ethics in this industry.
Regards,
You’re right; ethics is in short supply in r/e industry. Keep that in mind, but keep on investing.
Experience, unfortunately, can be expensive.Cheers,
Marc.
[email protected]Originally posted by giovanni:No ANZ are not competitive on anything!
Sorry if I offend any ANZ employee or customer!
Gio
Don’t be sorry about offending any bank – they have thick skins, big profits and love to call in their funds if you default. Be loyal unto thyself.
Cheers,
Marc.
[email protected]Originally posted by Munno:What if vendor request not to go ahead with settlement two days prior to settlement date.
What are my options?
What about all the expence/purchase I made for that house? e.g. renovation, kitchen etc.
Please help me.
Regards,
Another (not so nice) option is to let the whole thing slide, then threaten to put a caveat on the property so the vendor can’t sell it until they pay your out of pocket costs you incurred in the process of this failed deal. Or, don’t tell them you are doing it and just do it. They will get a nasty surprise when they try to sell it later on. I have heard that real estate agents do this to try and get commissions they are owed. The only problem is you are still out of pocket for a length of thime.
Good luck; don’t let this setback put you off – it’s one of the hazards of the job. Go out and get another deal.Cheers,
Marc.
[email protected]
