I generally take out insurance from the time the contract becomes unconditional.( building and pest inspections completed) I figure if something goes wrong before then then the inspection will find it and negotiations entered into. A cover note is usually enough as you dont have to pay for it for a couple of weeks if the contract flops for any reason then just call the insurance and remove cover without cost. Just a lot of correspondence! I always inspect before settlement, not that there is much that can be done without causing major upset. I guess because I do my legals myself I follow the contract and all the protection It can offer. Another Thing I have found is that if they percieve you are going to inspect they are less likely to try anything naughty![]

I have crunched the numbers for owner builder. It is a goer if you have the time and skills, but a huge commitment. I think unless you are after something specific, to buy and renovate is a far more cost efficient option. Ther are heeps of hidden costs in finishing a house. Establishing gardens, turf, letterbox, clothes line, light fittings. all these costs add up as do plans and council fees. ther is also a lot of down time in building a house where you have money tied up and no income from it. A house can be renovated fairly fast and tennants put through before it is even finished. I have often lived in a half finished house…semi built not too comfortable. second toilet is always good…use one while the other is being renovated

I feel wrapping can have a detrimental effect on the wrapees. The principal that they percieve they own the house makes them take care of it if they really carnt afford it then it falls in a heap and the only winners are the wrapers with the wrapee worse off. To wrap as a favor can work for family. My family gave me a hand up when I first started out and I would help my family out.

Everthing goes up. The trick is to hold things that go up rather htan get old and become worth less. Property is always a up on the long term. unfortunately boats for me have been a down as have cars. Luckly property can be entertaining I think there will be some correction all round this year. prices fall, rents catch up

the secret to keeping tennants content is knowing the law and your responsibilitesand theirs. Be upfront and honest with them. I find that it changes over time. they are not going to be overly fond of you after a rent increase. Who is fond of bills conning in! I manage myself, In doing so I ask the tennant the urgency when they ring me up and demand maintance. Usually they are pretty good. Also tell them when you inspect is something is not up to scratch and ask them when they will rectify the problem (overgrown gardens minor damage) then negotiate a time to check it has been done. The check is verry important. Once they know you do this it will become less important (the check) accountability is important as is letting them know their options small claims if not happy.

I was not thinking of the wrapers rather those who had been wrapped. they paid a high price for the property (If it is theirs) and are paying a high rate of interest. Often working in unsecure jobs which traditional means would not give finance. These jobs may be lost unable to keep up payements the “wrap” may fall in a heap especially if those wrapped feel their hose is not worth what they are paying (A fall in the market) The property goes back to the wrapper, I would think in poor condition (annoyed feeling ridded off people rarely take good care of things) then unable to rent it out as it is the wrapper has to renovate and rent it out or sell at a reduced rate in a poor market.[V] I guess that is why they charge a preiminum to the wrapee who eventually ends up a loss in this instance.

the market seems to dictatewhat we can do. I have just sold an investment property and am eagly awaiting the “doom” with any luck the doom will be bad enough for me to buy two properties with my proceeds. With doom and boom come opportunities take hold of these and do well. There is a time for everything!
[:p]

It is a elaberate game of building a relationship and having a punt. By all means you will win a few when people are in to deep. YOu may even snare some investors who have attempted to wrap. Make money after some one else takes a loss. sounds evil but seems to work. All parties consent to the deal even if it is unhappily.
Brendan

so you guys dont have enough property in the local area. I feel it difficult to know the marked intimately enough to purchase in different markets. I prefer the local markets and certainty…I guess I am just careful!