Forum Replies Created
I can`t give you any advise but I`d be sceptical.
A lot of people are buying in NZ and many have said to me the price increases have been helped by “The Lord of the Rings” come on!.
Will there be tenants prepared to pay this kind of rent?.
Seems like there is a ton of internet investors over there I`d be worried about investing in other countries on the advise of others, a lot of people are getting excited about the prospects over there but all I hear are warning bells.Even if your properties are cash flow positive there is nothing to say that they will move up in price by say seven yrs time, they may go down, it`s fine if you want the extra work of rental properties for a few extra bucks a week, but at the end of the day anything can happen in your life, seven to ten yrs is a long time, personally I think it`s not a good idea for most to have more than a few rentals, they can very quickly become CF-, then you may lose your job, get ill whatever, it depends on your circumstances, lastly don`t get excited chances are if you recently bought investment property in Melb or Sydney your prospects may not be too great.
Originally posted by kay henry:Well, Aussies come from a more critical perspective than, for example, americans might. Hence the “weapons of mass destruction” war…
ryanmel- no offence taken :o) I merely think it’s funny when people suggest that folks who watch/read the media are herdish.
When i was teaching, I suggested to students that they might watch SBS and ABC and offered some other media sources, as many of the students only accessed mainstream media, and therefore often got only one perspective about various things.
I guess my point was that it’s a bit of a cliche to suggest the media is a lot of rubbish. If one approaches everything they read- including on here- with a critical mind, then one will always be safe from gurus and gods. It’s those that believe everything they hear who are likely to become cult-followers. but what can one do? I guess people just need to *believe* in something, and whatever is laid before them will become the new fad.
kay henry
Kay I just don`t believe it`s that easy to stop your mind from being clouded, besides I don`t have the time to spend sifting the good from the bad, all I was saying is for “me” it is definately not the way to go, I mean you listen to tv and read mewspapers are you telling me this will not affect your decisions when it comes to the crunch, especially if your new to investing?, I just have a strong aversion to it but if it works for you, it works for you.[^]
It just seems that someone who seeks daily or even weekly updates on R/E generally is more in line with a speculator than a true investor, and that to me is a bit risky and really overdoing it.This is a tough one!.
Firstly as someone already said you should have got a lot more deposit on a property of that worth, tens of thousands more, if it`s unconditional they shouldn`t have any problem with it!.
I recently bought a house and instructed my solicitor to pull out of it with only a couple of weeks left, but there was a genuine reason why I had every right imo to pull out, the agent told me that the land was res b when it was in fact non urban which I did not find out until close to settlement, I thought long and hard and ended up buying the house.
Reason I mention this story is my solicitor said at the time this had NEVER happened before in his office but it was likely due to the obvious blue by the agent I would likely get all my deposit back.
This is not the case from the sounds of your deal, you should get compensated, maybe not 10% after all that is $80,000, you`ll never get that much, if thier true reason is finance they really need to pay up.
I would get my solicitor to write them a extremely threatening letter, this has an incredible affect at times especially when the party knows they are wrong and these poeple don`t have a leg to stand on.
Get your solicitor to write at the end of the letter a note that a certain amount paid to you (whatever you think is fair but don`t go nuts) will stop any legal action which will be very forcefully applied to get ultimate dollars, I would be very surprised if a cheque is not in the mail very smartly!, this way it costs you next to nothing, 1 letter, and you will salvage enough money to compensate yourself, again don`t make it too much remember the alternative will be drawn out and costly.
Good luck.Kay, I didn`t mean to imply ignorant, that`s a word too easily thrown around!.
Magazines are good for different articles and ideas but I don`t believe they generally give you a true guide of property values, I think they are dangerous for inexperienced investors.
I suppose my info mainly comes from my house painting business and generally getting to know areas, what`s good what`s not etc, also I read a lot of books, and not only R/E investment.
Before the boom I spoke to many landlords over the years who had bailed out of property rentals simply for reasons of bad tenants too much work etc etc.
I believe when the market busts or stabilises most of the gurus will disappear and many investors will get out or move on.
I have invested in property a number of times over the years and always made money sometimes very good money, and it seemed to me from watching TV and reading magazines etc what had worked for me in the past was clearly not in line with what I was reading/watching.
I read a book titled Ordinary People Extraordinary Wealth and it summed up by saying the majority of the successful people in the book had not gone to seminars or read the daily newspapers, and were unaffected by the herd mentality they just stuck to tried and true gut feelings and what worked for them.
I`ve seen people lose everything after making a ton of money in a booming market, it is easier than people think.
I think it is good to make sure you win no matter what the market does, be prepared and don`t take risks, follow a concrete plan, very few people get rich overnight!, and don`t ever follow the herds, by then, your too late!, following the herds imo clouds your thinking and could ultimately land you in trouble.Originally posted by Pisces133:Here is a good example of someone letting their emotions getting in the way of what is the right thing to do for their family.
Some years ago a friend of my wife lived in a semi in Bronte.
She and her husband decided to move from Sydney to Perth for some stupid emotional reason (which I don’t want to go into because it isn’t relevant for the purpose of this post).
They finished up having two buyers, one offering
$ 10 K more than the other one.The wife decided that she would sell to the nice young couple for the $ 10 K lower offer rather than going for the higher offer.
Now this family wasn’t in a strong financial position and, besides that, they had three young children. In fact they themselves were in dire straights fimancially speaking.
Now I can imagine that some people here may well say ‘good on her, she followed her heart’.
I say she was a f….. idiot who had her priorities wrong.
How irresponsible for someone who isn’t flush with money herself to throw $ 10K away like that.
Bleeding heart ? No, must have been a bleeding brain.
Pisces133
Sorry bout that Pisces!, I read too quick for my own good at times.
Back to the argument… it`s debatable!, I grew up in a far from financially comfortable large family and I think it can do kids a lot of good in that environment, as long as it`s a happy environment!, fact is EVERYONE can`t have money and everyone can`t click thier fingers and provide for thier kids everything they want in life.For the record I believe there are many investors out there who never listen to media and probably do much better than those that do, it`s the herds that follow the media.
Have they ever been right?. Rarely.
Same goes with property magazines they are so far behind it`s a joke.
I do read them but rarely pay any attention to them whatsoever.
Study the market yourself and make your own decisions.Are you sure your a pisces?, the friendly little fishy cruising through life?[8D], you sound like a Great White on a rampage![8].
I don`t think someone having money is of any benefit to there kids for a start.
Maybe money was not a priority in thier life, there are more important things.
Have you ever thought about taking boxercise classes as an outlet for your frustration and rage?.[^], maybe even start a Pro boxing career, women can earn good money these days, I could train you I reckon you`d be a contender in no time!.Also, this is not news!, they have been saying this about Sydney and Melbourne for a while now.
Also many EXPERTS said the same about Brisbane CBD units over the last 12 months and what has happened?, it`s continued to grow and the demand is still not being met!.
Anything can happen, but I don`t think too many would be surprised if prices did fall in Sydney and Melbourne.Sounds like you are making more of it than it is.
The biulder fixed it, so that`s it!.
A leaky roof is not a major structural problem or anything to get too worried about.
When you buy a property it`s as is and it`s up to the buyer to check it out thoroughly.
If there was a major problem it`s generally obvious anyway.
Ethics are a good thing but let`s not go overboard.I see a lot of prices and areas in Brissie right now that don`t really add up, therefore I still think there are some great opportunities out there.
I`ve lived here for a long time and watched prices for many years.
It`s a bit difficult to pick but you will need to be selective to get the best gains.
I do think Brissie will generally still climb but at a much slower rate than it has in the past couple of years.Originally posted by Pisces133:>>I guess it’s a matter of doing unto others…<<
Give us some examples, Kay, where you have done a good deed as otherwise we may jump to the conclusion you are all talk and fluff rather than substance.
For example, some years ago I bought a small development site and agreed to sell the vendor one of the villas on completion at a discount to the market price (whatever the market value may be at the time).
The time of completion arrived but by that time, God being on the side of the Righteous, prices had exploded and the vendor was no longer in a position to be able to purchase a property from me.
I gave her, in today’s terms, the equivalent of some
$ 80 K discount so she was able to remain in the area and still have some money left for the cruise she had been planning to go on.So what good deeds have you done Kay or are you all talk and no substance ?
Pisces (this is my last word on the subject as it makes me sick hearing the drivel you both so self righteously carry on with).
HAHAHA, here we go again!.
Pisces I don`t need to prove my goodwill, if I am the dribbler you think I am are you really going to believe my stories.
It is simply another case of someone undoubtedly feel guilty, otherwise why would you take that tone?.
I treat people as I would expected to be treated and definately have come to learn what goes around comes around, and it`s often a double whammy!.
Let me assume you meant in your story that you sold the villa as promised, with a big discount from the current market, that`s great.
Good on you for doing it![^], but do you really think it`s something that`s along the same lines?.
I never said I would give money or property away, not a chance I am in no position to do that, I work too hard and long for what I have, but good on ya for doing it, I think I might do it if I was in a position to.
You sound very contradictory though, like it doesn`t add up, on the one hand you are giving handouts then rubbishing others for simply being fairminded, what`s up?.Would it be that you are now giving back some with guilt as you got to where you are by means you are not too proud?. Sounds like you give away because it makes you feel better about yourself. No malice intended, just sounds that way!.
It`s still a good thing, a very good thing [^]but not what the discussion was intended to focus on.Kay there are not many with that good attitude in R/E I`m afraid.
One particular foreclosure “flipper” I talked to used an example which started with, “there is a seller who`s sick old mother had moved out of the house into a nursing home”, I laughed out loud at that one…say no more.
He was to buy the home for 20K max, in a rundown condition of course but the property was estimated to be market value $40k as is, he said this was truly win win.
He failed to realise the owner cannot win, they had already lost the game and he was simply out of the generosity of his heart, “handing them the booby prize”, and taking off like a thief in the night with his bag full of money.[V]Originally posted by kay henry:Well, you know me, Pisces- it sucks being a “bleeding heart”, but what can I tell you
I tend to think we can justify anything. For example, we can justify jobs going offshore- as Testra is about to do- lose 400 australian jobs because they want to pay poorer wages to Indians. For me, it’s hard to justify profits over people.
Regarding repo RE, Pisces- I can see what you’re saying. I have made decisions not to deal in the pensioner market, nor the wrapping market, nor the “old guy who doesn;t know what his house is worth” market. Nor the “death, divorce, drought” market.
I think if a house was under foreclosure, I wouldn’t be able to feel happy about the purchase. I can’t bear human suffering. [
]I think i would have to give someone who had foreclosed absolute market value for their place. That would be truly “helping” their situation. Firesale prices really only help us- not the person who is down on their luck.
kay henry
Thanks for all the replies, interesting in that there are differences to how they do it in USA.
I got into some very drawn out and heated debates as I took Kays path as quoted above and “let `em have it with both barrels”. [^]
I do feel these kind of deals are taking advantage in the majority of occasions and what price is your self respect worth?.
Of course this is not to say it is ALWAYS unethical, but the majority I spoke to seemed to support the “taking the maximum possible out of the deal” type attitude[V].quote:
Originally posted by jaapmeenchiI have put down an expression of interest on a block of land in Bargara and am due to pay for this in about 5 months time. Does anybody else have property in this area or have any opinions on what will happen to prices there?
Bargara has boomed already as I`m sure you know.
I think a lot depends on whether you have good access veiws to the beach.
Houses there can be relatively cheap compared to other beachfront type property.
A lot of people will likely retire to a place like this though in the near future[8D].There is a big difference between a low offer with a cash deposit and the intention to buy at a fair price between both parties, as compared to a totally unrealistic one with no deposit and with no veiw to negotiation, and obviously designed to weed out people in difficulty.
Why would he not want to buy the house?.
Especially considering he`s a biulder and lives there already?.You will very quickly become known as a vulture, many agents will walk away from you as they should, I can understand why a newbie might see this method as having it`s use but not thinking it through.
You may get some good buys from sellers in trouble but remember what goes around comes around.
You do not need to get properties far below market value if you put in the work, study the market and continue to learn.Sounds like you want to use people to get rich any way you can.
Does load the price up mean charge struggling people top dollar for your house, as they can`t get one through the normal means?.
As soon as they have some hardship in making the payments will you take a look at the value of the property and adjust your kicking method when you “boot” them out the door?.[V]quote:
Originally posted by jaapmeenchiThanks Markpatrick for the encouragement, because believe me I need it at the moment. Do you have property up there?
Yes I have one similar deal in Park Avenue, I would have bought more but I had limited time and money.
]
