Forum Replies Created
You won’t get a house in a reputable inner suburb for $300k. Maybe a flat or unit.
For a family home around the 300k range, I’d consider Boronia, Ferntree Gully.
Frankston South (in the High School Zone)
Edithvale area (near bay)
But you want to get a hold of at least $450k to buy anything similar to your description. Then try caulfield area, brighton area, surrey hills area, many many others.
I’d recommend renting in melbourne to get a feel for the city first. This will also help you find and secure a bargain as the pressure wont be on to buy in a hurry.
Live, Learn and GrowLifexperience
You are posting just fine Cazza.
Heres a few ideas:
Advertise the 2br unit in Homebush for
“$530,000 WITH SPECIAL 4% FINANCE (for first year).” Just get agent to whack a 4% financing bit in the ad. Make sure it stands out.The buyer will still get his normal financing from bank which would be about 7.5% at the moment.
He may borrow 80% LVR which would be a loan of $424,000.
Interest Repayments of $611 approx per week.BUT>>>> because you are offering that the buyer will only be paying 4% in the first year, his repayments will drop to $326 approx per week.!!!! You will sell this QUICK!!All it will cost you is 3.5% of $424000 = $14840. So you are effectively getting $515,160 for unit..
Simply pay this money into an account at settlement and instruct the buyer to have his loan draw partly out of this for each repayment for 1 year. You just write one cheque which comes from the money you were paid anyway.ALTERNATIVELY,–
Advertise some of your properties with “No deposit needed”.. And then when a buyer comes to you, that is short on deposit. Simply get a property lawyer to write up a contract whereby the buyer pays you the deposit over a period of time (whatever you are comfortable with and can negotiate).
So one way will get you buyers who want to save $300 bucks a week.
The other way will get you buyers who haven’t quite got a deposit.
Whack these into your advertising. Make sure they REALLY stand out.
GO GO GO
Live, Learn and GrowLifexperience
More yield. more work. Make sure you have the time, inclination and are in close proximity to the property if you truly want to take on the potential dramas.
[juggle][juggle][smart]
Live, Learn and GrowLifexperience
“fist post”
WTF?
I thought I’d stumbled across something sinister and sexually deviant.
…and felt it was my duty to extinguish and destroy such filth.
Christian values AHOY…….!
Live, Learn and GrowLifexperience
why do people post here of their dire circumstance. Request help and then vanish off the face of the earth.
So many people ready and able to assist and support and ……. vanish??
Alien abduction WTF?
Live, Learn and GrowLifexperience
Get a good broker to shop around. What one bank says is a close call, another lender will piss it in and give you cherries on top..
Live, Learn and GrowLifexperience
Great, less running around for you and the purchaser has an emotional attachment…….. he found it!
otherwise no difference
Live, Learn and GrowLifexperience
kmiddlet,
Thanks for your indirect retort that was dripping in condescending disdain.However..
Your example is not relevant to my statement.Building and selling property is a good way to make money(and a lot of work and effort too), but it’s a totally different issue to the selection of an investment property for long term capital gains.
And I find it quaint that you feel the need to point out that further research is needed. Point out the bleeding obvious!
The house component of a property always depreciates over time. It depreciates the most in the first few years. FACT.
The land component of a property is the driving factor behind the capital growth. The better the area, the more the capital gain. FACT
So……
if you had $400,000(or any amount) and were to choose between a new house from a developer OR a older house in a better area. When both houses are the same layout.
Based on this MY OPINION is that…..“I think it is widely accepted that you will get greater capital gains from an existing property in a good location as opposed to a new property in an estate EVERY TIME…, when comparing properties of similar cost.”
Live, Learn and GrowLifexperience
5 mins MAX to get licence
Live, Learn and GrowLifexperience
C suck
Live, Learn and GrowLifexperience
Sorry, had to GEEK it up for a moment. I’ll shut up now.
Live, Learn and GrowLifexperience
When I read this, I think….. “Man, get some REAL problems.”
Then I think about my own gripes and complaints, as i slowly become a grumpy old bastard, and I’ll bet there are people out there that would think the same of my own insignificant dramas when compared to their life challenges.
Innit’ all relative?
Live, Learn and GrowLifexperience
Instead of dropping the prices. You need to make it EASIER for someone to buy.
Try offering a deal with some finance (ie: you vendor finance part of the sale to make it easier for them if they have no deposit. You offer a 2nd Mortgage)
Or you could offer to discount their bank loan to 4 or 5 % for the first year. (just put some of the sale money in a bank account to pay the difference between their bank loan and the rate you offer) This would drop their initial weekly payments by a few hundred bucks a week.
Try wrapping them.
Or you could do a rent to buy deal.
You could even try HIRING a wrapper or savvy investor (many on this site) to set up these deals for you.
Can you describe your situation in more detail?
gotta go,,,,, good luck!
[bulb][biggrin][bulb]
Live, Learn and GrowLifexperience
I think it is widely accepted that you will get greater capital gains from an existing property in a good location as opposed to a new property in an estate EVERY TIME…, when comparing properties of similar cost.
Live, Learn and GrowLifexperience
I was running share houses with similar pos. cashflow figures as you’ve posted here Jaffasoft.
I am now just running straight rentals at neutral gearing.
Too much extra work and risk with not enough extra yield for me personally.
3 -4 times as many tenants, 3-4 times as many vacancies and 3-4 times as many problems.
Cashflow pos. properties at the expense of extra risk and work no longer impress me.cheers
Live, Learn and GrowLifexperience
letiha,
very provacitive thread title., great!
however
The agent wasn’t that stupid when you consider what was in it for them. They work on a 3% commission usually so the difference between an agreed sale and an extra couple of hundred bucks in their pockets would not be worth the risk.
As soon as the RE Agent can get the vendor to agree to an offer, it is all over. Squeezing a few extra grand out of the buyer for the vendor is of no benefit to yhe Agent at all.
Even a gambler wouldn’t risk 9 – 10 grand for the sake of a few hundred bucks.
Great lesson in understanding the 3 dynamics of a sale.
Live, Learn and GrowLifexperience
Turn up in an old bomb and ripped bogan clothes and explain that you have the money toaday from an inheritance/lotto win. However you are about 50 grand short of the asking price. But want to buy it today.
Live, Learn and GrowLifexperience
If you push the issue and the tenant gets annoyed, then they may refuse to pay any rent and then you have to wait until they are at least 2 weeks behind before you can even ask them to leave.
If they are spiteful, they will pay at this point just enough to bring rent up to date. Then let it go for two more weeks.
If they push the issue and have a valid reason why they cant pay rent, ie Struggling Single Mum, they may not pay you for months and months….. nothing you can do.
Even though you own the house, the Tenant has a lot of rights. It is well worth the effort of looking after your tenant with regard to maintainance and respect…. before you try to push them for extra rent. They may just push back.
Live, Learn and GrowLifexperience
Be wary of Real Estate Agents, they are not always 100% on your side. They often side with the buyer to get a lower price from you than what you wanted.
Any sale is a commission to them, even if it sells below value…..….be warned.
It is also worth reading some of “Neil Jenmans” books to open your eyes to the dangers of RE Investing. (Although his points are often one sided and sensationalise minor issues, it is an eye opener to the RE world)
…..of course there are honest good Real Estate Agents too. They just don’t get as many sales! HA
So personally,I wouldn’t encourage a quick sale for a bonus.
What I would do though is sit down with the Real Estate Agent and make it clear what you want and what terms you don’t want to compromise.
Time to settlement (short or long)
Maximum Price or Quick Sale.
Deposit to be released early or not.
Allow Building inspections or other clauses that potentially let buyer pause all progress until they decide they want it or UNCONDITIONAL contract up front.
Vendor Finance available for all or partial of sale price.
Allow access to purchaser prior to sale for residence or reno’s.
All of these and more are things to consider.
Good Luck, I hope all goes well.
[thumbsup2]
Live, Learn and GrowLifexperience
Centrelink are notorious for missing/losing payments, and the Tenant can cancel the payment at any time without informing you.
You must still keep a close eye on the payments, not a set and forget strategy by any means.
I have used the centrepay system, it is ok for the most part.
Live, Learn and GrowLifexperience
