Forum Replies Created
Nice one Howard .
Yeah I see more and more now just how important the deal you do is and plus it helps cover your butt .
I mean what a 100 grand before you've even started , lot of mooler isn't it !
I haven't done many compared to most here but it just amazes me the power in whatever deal you decide to do at the start.Watching a few people I've come across , the strategy and art form they turn it into , almost embarrassing but does it pay .
These days I almost reckon myself it's probably the most important part and can often match again anything you hope to do on the place later .I paid too much for my first one to Devo , second one too I think but I'm getting the hang of it now and go for broke . Anyway if ya gonna buy anything right now you have to I reckon
Cheers.
Hi Spunky.
You bet it's worth it . Offer anything you feel would be at the bottom end of reasonable in 6 mths from now and then minus some again .
Yep you might get laughed at , tough , but eh not so tough when you get the old phone call .Don't go paying some silly price now whatever you do, asking for trouble . There's still plenty of sellers in la la land .
Cheers
PS . Actually the offer is my fav' subject to tell you the truth and I only wish I was a bigger fish in the sea so that I could buy more when time comes .
Hi Winzer.
Just do what I've done twice now , believe me it's no big deal if I can do it .
Advertise yourself , find buyer , do deal , make sure his sure , if alls well deliver to your solic' , go home , solic' does rest .
Same buying , find house / owner, whatever , make deal , hand over to solic' , they do rest . Your money or properties in mail in no time , hassle free , hopefully anyway.Personally I've had to be as tight as but I just don't reckon there's enough to save in doing the messy stuff yourself and too much potential for lots of headaches , even solicitors get tried to the max with some properties.
Cheers
I love flats not that I own any but I hope to one day .
Personally I think flats still have a good shot as they're are so middle to lower road which will be a bloody nice place to be for quite a while to come now I'd say .I had the op' to buy a block of 4 , 10 yrs back at Moe , Vic . Then well CFP and the deal made it poss' that I could have bought them. Man do I wish I did but also if you look at Moe stats now just to top it plus boom , me makem vedy silly mistake .
Definitely wouldn't go building them though and especially in these times , you've just got too much to re-coop , big worries and with lots and lots of outlay . Nightmare comes to mind in great big neons .
But buying a block of them I say why the hell not .Cheers
duckster wrote:I own a pre fab house ex housing commission and it holds up well in value with the other houses in the suburb that are not prefab.What I have found is that the steel frame and solid concrete walls makes the house extremely tenant damage proof.
In the case of a fire there is no wood in the roof or in the walls to catch fire or be eaten by termites.
It has a fake brick veneer exterior on the concrete walls.
Thanks Duskter
Good point too about being damage proof .
Cheers
Yeah plenty of both all the way along the Great Ocean but I'm not in that bracket – one day hopefully .
Abit iffy with all going on eh Tony , scary times alright . I think if you buy right and only stuff that you can add too by a reno , duplex , corner block and a flat at rear , divide or in someway, that will also rent well if stuck , you can do the sums and work out the leeway you have .
100% and allot more properties are quite fee sable , I've done two like that so far , found dozens . So if things dump 50% your still covered especially if it all rent well .good luck
cheersTony B wrote:Mister
Great stuff Im glad you got a good deal. I agree you do have to work to find a bargan and some people dont like to do the hard yards. Mate, I noticed a lot of talk on this site about now being a time of uncertainty and people hanging off buying, the worlds shit about to hit the fan etc. so it could be agood time to make an offer. Is this true? Good point re. christmas, never thourght of it like that. Man, Ive done the hard yards even put up poster wanting to buy privatly driven round and even door knoked to find out who owns the place next door. I may be expecting to much of a bargain but I beleive what you said you need to get it cheap now as we dont know what will happen in the near future, need that profit buffer. I beleive you make your money on property when you buy it not when you sell it. Im also concerned about rate drops it may start a buying spree again, share prices dropping and people starting to look for a safer place for supper. Dont know your oppinion on these points.I can be a tight ass and like to point out the negatives to the agent and vendor but only to out smart myself when some one elles whats the property more than me. However, the next few months may see a differance. I hope a bargain comes my way soon. By the way what state did you buy in?
Cheers
T…………..G'day Tony
Ahh tight ass is good mate , notice most money people are very thoughtful with their money .
I'm hoping the interest rate drop and more on the way might actually create a bit of a quick spike in property now.
I'm in Vic , Great Ocean Road and bought in Vic but actually I better not say where for different reasons yet as it's a bit soon but
I don't like interstate stuff or being away myself, expensive too and knowing your area / state really has a lot to be said for it .Nothing wrong with the old drive rounds and poking about Tony , lots of people do that – I'm a terror for it . Snuck in on an absolute ripper one off deal like that 3 yrs ago and have dug up all sorts of goodies .
Nets great for the targets and research, rounding up the properties too I reckon but then if you can get over there and take a good look around in person , get a feel for what's going on , drive the streets , have some lunch .
Nearly made some big mistakes by it all looking great on the net but then I've gone over and straight away you see forget it .Yeah they do say people turn to property when shares dump don't they – not sure on that one . There's some real money people around here though and you can bet they'll be plotting away in one way or another.
I mean if you've got the guts and the knowledge there's gonna be fantastic share buys coming up but only the pro's will be game the rest will wait until after the fact .
The property angle , bugared if I know on that one actually . Only buy with the best inbuilt buffers and price we can manage is my strategy or else wait 12-18 mths .Cheers
Tony B wrote:Mister & others
I totally agree with John re. discounts on listed prices. I may add I found out the hard way. Two offers I made on property I really liked, both cash & unconditional but with a 15% off listed price got sold for listed price. I now start again to look for another , may take 3 or 4 months to find a suitable investment.I also was under the opinion vendors would consider offers discounted by 20% or 30% but in most cases they will not. Agents want to sell the place so they try to advise the vendor realistic prices, in most cases anyway.
Mister, from my expiriance think about this, you find a good place which has the potential to make you some money, a safe bet in a good location. You then play hard ball with a low offer, and keep in mind a vendor dose not have to make you a counter offer, then I come along and like the place also and offer a few K under list price, its now sold.
When making an offer IMPO one should do it in writting on a contract note of contract. If you want to discount use your terms as best you can, 30 days or less, cash no finance, 10 or 20 % deposit in 24 hours after the vendor signs. Offer to expire in 2 or 3 days. Most vendors dont like to be pushed, they may talk it over with family etc. I give 2 full days for my offer to expire. If you dont put this you may find as you have that the agent will wait for more offers to come in. But be realistic in you offer unless you are happy to walk away.
Also please consider, if the vendor is so keen to drop the price Why? Are all the properties in the area over priced and now falling and will they continue after I purchase? You may get a cheap place but if its a bargain you only find out latter. You also may have to discount the price when you go to sell in the future. If you make a low offer most agents will say they will give your offer to the vendor over the phone, most likly they will tell you the vendor said no. The vendor may not even get the offer because its too low and the agent does not want the embarisment. Get your offer in writing so they have to take it to the vendor. By the way dont contact the vendor direct even if the agent is taking too long. Work with them not againt them, even if you have to push & hassle the sh*t out of the agent, its best. Let us know how your offer turned out.
Best of luck with you offer
T………..
Thanks Tony.
Mate my offer was accepted so I'm very pleased , you must have missed it above .Good advice though thanks for that .
I think if your gonne buy now you have to be cheeky . The only way I'd buy anything right now was if I am very happy with the price and the property and price have the leeway and versatility to cover any down turn in a few ways as backup .
The old nobody else wants it scenario really has allot to be said for it too , every place I've done has been one of those . Gotten great deals and heaps of leeway in profit margin if the reason they don't want it is the right one .
Normal people don't think like an investor , it seems the most petty things can turn them off and make them suspicious . I'm a firm believer in riding that one all the way to the bank .
You sound like your having trouble finding good buys , spose it depends on where you are but I am finding you do have to dig around allot because you need special stuff right now , but once they start turning up it tends to snowball and before long they're coming out of the woodwork everywhere .
If your having trouble , what I did was made up my mind – right get of my ass and find something.
This made me actually focus as compared to dilly dallying 1/2 heartedly . I was amazed at the difference , before long they were turning up everywhere . Where as before I later realized I was hanging up the gloves too early , right about when the fruits of my labor were due to start paying off . Big lesson for me this year that one.
I made my offer cash and offered a quick settlement if they preferred but left them with the option to take longer if they wanted .
I think right now is a great time for offers, everyones scared , Christmas is coming , people like to tie up loose ends by Christmas , also wanting to offload anything they don't need before the worlds shit hits the fan , gotta be sure of your buy though I think .
There's one guy here just got an offer through at 40% off – great place too and plenty of leeway . It took them 3 mths and one action but they eventually accepted .Cheers
TheYoungInvestor wrote:So should the property investors in sydney wait for a couple of more months before the prices really drop? Or you can start buying now because it's the right time?I keep getting confused is it the right time to invest or wait?
Don't worry it's confusing for anyone right now .
I actually came back to soften this post but with Sydney though – definitely wouldn't if I were you.
I just think it has to go down and quite a bit yet as it is so dear . You could save a fortune just by waiting 12 mths.
Cheersgod_of_money wrote:It is like buying Babcock and Brown or Macquarie Bank at their heights….
The question is : Can the rental price sustain A$ 1300/week for the next 10-15 years?
Sure it is cash flow +ve for now.. but how about in the next 2-3 years…. ???Dow Jones Future Commodities index took the worse decline in the last 50 years… and Shanghai or Bombay Index also get hammered by 1/2 of their value… lots of talking about booming of BRIC economy…. the truth is they probably will get the worst hits and you can tell the consequence of small to medium mining companies…. remember Poisedon ????
S't yeah , hows Bab & Brown eh. I was trading them daily about a year back – can't remember what at and can't be bothered checking but I think it was 25-30ish or where ever they were – could have that off a bit so many since but I did so many good trades on them for awhile there . Hard to believe their where they are now .
Cheersalani wrote:Mister wrote:I chuckled after posting this question though, I must have been the only person in the country offering anything on anything last week of all weeks .Cheers
your not alone, trust me! if your a true PI, you would be doing your best to buy at least a couple of IP before the years end, obviously 15% below the asking price.
You think so alani , thanks for that .
I'm not a true PI yet but I am working on it very hard . Self doubts been creeping in and out on me though this year with the wild times going on . You sound pretty confident though , very encouraging .Cheers
businessglobal wrote:I believe in gold and for thousands of years it has always stacked up, also I watch where the wealth goes in the ethnic communities and learn from some very wealthy chinese and italian migrants and gold is where it goes when shares, stocks and currencies are in trouble and not guaranteed.So Im putting next week some cash and my SMSF will buy some gold and have it stored
I have watched the movement of investments, have some great mentors in USA and OZ, and they are stacking up on gold now, and also buiying up as much property as they can if the deal is right and margin or opportunity in it.
If the shit hits the fan, Ive got a tent, will go bush with the dog to the hill of my farm in Bega, grow veges, and if gold goes up the river also, Ill have a party and melt my gold bars.
I think you have to look back at hard times and ask those that survived what did they do, how and what stood up- and most of the people tell me they survived as had gold, and some land to grow things to sell, or sold cattle/ dairy products, as most could not borrow any equity from banks, and their real estate was not selling at all. Also many people think they will be ok if they have a lot of equity in their property, or lines of credit- but dont forget the bank can stop this or recall it at any time, or change their criteria for release of funds.
Bye
Kylie that's the coolest post I've read in this place – cheers.
But hey good point , I grew up in suburbs full of migrants and if anyone knows how to hang on to mooler it's those guys your spot on .
We had one guy – the original property guru when I was growing up . He did shift work , stinkin factory – came over with nothing. Just worked his shift work and kept on keeping on but he use to disappear allot . About 15 yrs later as I grew up it came out that he'd been buying up houses and when he disappeared it was usually working on his houses.
He'd bought 30 houses in the 15 yrs we found out. Started one year after he got here with one , jazzed it up and rented it out , and on from there . His probably got a 100 by now .
He never seld one which was how we found out actually . When I first moved out of home his at my girlfriends place and offered us a place to rent . We said well yeah if you have something – he says what sort would you like ?
Huuu !
So he drove us around to them all and we took our pick., jaw dropped to the floor . He had all sorts and some quite expensive for the time .Cheers.
PS hows gorgeous Bega going , lived there for 3 yrs.
Ooow that was sooo sweet – accepted guys , me one happy puppy.
Four blocks for , well I won't say it's almost embarrassing .John , John , John , not even going there mate but are you for real. As many others here would know many many times over, the problem isn't finding opportunities it's narrowing choices down and choosing , that's the beauty of real estate. You of all people actually dealing in the stuff should know that better than anyone.
Hell I've spent 1/2 the year chasing my tale with so many opportunities trying to make up my mind.Cheers
chrislang wrote:Jon Chown wrote:As to your 20% below list offer – you may well think that it is a good price (for you) but I can assure you that as an agent, it would not get me jumping to help you. RP Data have an interesting calculator that shows the average difference between Advertised price and actual sale price and in the area that I am servicing the average discount is 5.8%.
It is my understanding that every area is different (even within the same suburb) and one would need to compare the asking price and the selling price in that specific area to know what discount applies – the average is not good enough. This is what works for me anyway.
.
To my thinking Hipe and averages around now are still coming from the boom , the boom was fake , a twilight zone .
The safest way now is taking a good look at the whole situation in a particular spot for the future not the past and making up your own mind based on that . If they don't like your price tough find someone else that does .Cheers
I know everyone's been saying gold for 12 mths but I don't trust gold . Maybe a few quick spikes but I don't think it's going far from here let alone the 1100 business .
Owell , I've got my hands full nursing RIO at 108 so I wouldn't listen to meCheers
The age old question ATM . Been asking it myself for mths .
I've come to the conclusion that no one knows , been amazed at even the totally opposite views with even the experts so you have to tell yourself .
Here's my solution .
Look at your area – what's it doing and why . If it's stagnating then the next move with everything else going on is likely to be down .
So work out where you think down is gonna be and for how long and buy only if you can get it at whatever you think the bottoming is going to be and make sure it's got plenty of built in options as backup.
If an area is moving then find out why and if the why is waring thin , has it started to decline – is it likely too and all the reasons in whatever is going on with it . I'm finding locals that aren't selling something are great for the real picture.And then there's the obvious as back up. Our property is way over priced , it's the dearest in the world of it's class plus we have had a massive boom – so there is a pretty good chance she's got some serious correcting coming from that alone but then there's everything else that's going on well.
My new theory is allow for all of the above and when you find something that covers your butt go for your life , if not wait 12 mths.
CheersHi.
Finding owners gonna take your PI shoes , I've asked the same thing . Someone here suggested somewhere in a post , ring the shire , say your the neighbour of that place and you need the owners contact for fencing problems.
Give that a try. Or ask around casually, someone around there will know them , don't tell them what it's about though .
But you'd have a lease too and they often the owners name and addy are on them , stray bills also sometimes have the owners details .
Forget the RE , even if they do do a deal it's gonna cost ya and be a big song and dance , much easier and much better chance of a good deal if you find the owner yourself .
But while your tracking down the owner have a really good think about your price though and look around too because his gonna be greedy with you just coming to him out of the blue .Good luck
Cheers
PS , also something I've only just discovered myself but it costs ya 14 bucks. The Vic gov land channel land search have a free report with the land details , just type in the addy but they also have a paid report which includes the owner.Jon Chown wrote:I chuckled after posting this question though, I must have been the only person in the country offering anything on anything last week of all weeks .Not at all, I sold two last week and enquiry from genuine buyers has increased quite a bit. Good properties priced well are still selling to genuine purchasers.As to your 20% below list offer – you may well think that it is a good price (for you) but I can assure you that as an agent, it would not get me jumping to help you. RP Data have an interesting calculator that shows the average difference between Advertised price and actual sale price and in the area that I am servicing the average discount is 5.8%.
Not making excuses for agents, and if this person has not contacted you, especially after an written offer, I can't believe it. Did you leave your name and contact numbers? Is this a regional area?
Thanks John , nice to know I'm not the only one then
Depends on whats going on in your specific area , yours must be a doosey if that's the case but they are gonna give you the best stats aren't they .
I've seen plenty of drops much bigger than 20% though and if you go paying silly asks with sellers refusing to acknowledge the fact in falling market areas your asking for trouble.
Yeah it is regional but for good reason.Cheers
Thanks for those replies guys .
It is a cash and quick settle offer , not all that rude either really . I mean right now if your not offering at least 20% lower you shouldn't be buying in most cases I don't think so considering that it's actually quite reasonable .
I chuckled after posting this question though, I must have been the only person in the country offering anything on anything last week of all weeks .Cheers
Jaffasoft wrote:I'm looking at deals that will rent positive cash flow from day one. Secured one and the other needs work til +cf, there also one's that can be renovated and sold at anytime when ready. If they are houses that are renovated and all done to the last finishing touches then agent are confident of buyers in the 140k-200k range. Least that's what's moving the best if any. So I'm targeting the low-to-middle range buyers. I subscribe to the school of thought that you can make money in any market provided you find the right deal and the margin is there with room to move if the market changes. This market i am in right now is sluggish and slow houses sitting on the market for a little while but in the next year demand is going to increase because of the macro market to do with new long term jobs and housing demand. That's also the plus and the upside i'm aiming for is this market.Thanks for the thoughts Jaffa , been so busy I forgot to check in on this thread.
Agree with what you've said here actually . Will Pm you with ideas happening if you don't mind.
Cheers
