Sorry, but methinks the agent is telling you some whopping “porkies” either that, or he is a total moron!!! Surely to goodness, if people were offering to pay as high as 170 and the landlord properties are being offered at 120/130 he would inform his landlords and tell them to “up the rents” to match. He is either bulls**ting you or the people are prepared to pay 170 but when they see what is on offer drop their prices because the IPs just don’t meet this higher price criteria. It doesn’t make sense. Something is outta whack here!!! [blink]

As for the rental increase over the next 12 months.

120K – 180p/w = 7.8% not to burst your bubble but that’s quite a jump for any area, not one I can see happening in the (immediate) near future UNLESS the supply of rental properties was so scarce and the demand so high that people not only OFFER 170p/w but actually pay it!!! That is, they have to put their money where their mouth is for me to be convinced that this scenario is likely!!!

Cheers,

Jo

Redhaven,

First of all the differnce between the two yields is minimal.

120K – 120p/w = 5.2% gross rental yield
240K – 250p/w = 5.4% gross rental yield

Hardly worth breaking a sweat over.[blush2]

As for your “minutes from township” try to look at it in terms of kms, and yes it does have SOME bearing on values, that is, the closet to CBD/township the greater the value. But there may well be other governing factors, for instance, are the 240K properties nearer to parks, water, transport, more renters as opposed to owner occupiers??? and so on.

It has nothing to do with “local mentality” and as such agents have little or no say in what the average person will and will not pay; if they don’t like the price, they will simply move on…PROVIDED of course, the supply is greater than the demand, and they (the renters) can pick and choose. Property investing is first and foremostly about supply and demand, and people’s attitudes toward certain areas, types of homes helps to set the trends which in turn influences the buying/selling and rental demand of properties.

What do you mean by “wait for the overflow effect from these other townships”??? What do you expect to happen???

I do agree with your notion of buying when prices are down, and yes sadly, it often is associated with yields (rentals) being down at the same time. But if you are into CG investing then buying and holding property in anticipation of future growth is always a good move, however you must not dismiss the mathematics behind it all; in other words you need to live, hence you have to determine whether you will invest in +CF or -CF.

Cheers,

Jo

Ambo,

Bottom of the page, there will be a box entitled SUBMIT, click on it, and it is saved.

Cheers,

Jo

Geez Yack,

Don’t be so “anti” fix it!!! [tongue] Sorry, couldn’t resist, you had that coming!!! [whistle]

Scremin,

I am confused here, can you please clarify a couple of things for me:

1. What is a “settlement agent” is that another name for a “conveyancer”???

2. Who set the settlement date originally??? You say “we” but as both you and the vendor are using the same SA which party did this???

3. How have you been “inconvenienced” by this one day delay, that is, for compensation to be considered you need to establish, are either you or the vendor, out of pocket in any way??? Or this is situation merely an annoyance.

4. Was a firm “settlement date” ever documented anywhere, and if so, what is the agents reason for the delay???

Cheers,

Jo

Hi Ambo,

Go to your profile page, and near the bottom of the page is a box/section entitled AVATAR, go there select the one you want and when done re-save your profile.

Cheers,

Jo

Try the thread called “The investor’s club founded by Kevin Young” on this very site. Link below:

https://www.propertyinvesting.com/forum/topic/12991.html

Sorry Brad, not thinking, you’re quite right THEY ARE THE SAME THING [blush2]

So were Ashburton and/or Ashwood once upon a time, even more so than Frankston North is today. But you try buying in either of these places now, not only are prices better, but the calibre of residents has risen tenfold!!!

Similarily, I grew up in North Fitzroy, and some of the surrounding areas at that time were “so-so” admittedly not “dodgy.” Nonetheless, I sold my home there years ago for just over the million dollar mark; not bad for an area my friends used to scoff at for being “full of wogs”!!! (please no disrespect intended, I am just quoting what used to get bandied around when I was growing up)

I understand your point zippy and agree it is not the most desirable area, but I think if you do your homework and research Frankston’s future infrastructure plans (including the new marina, Frankston-Mitcham freeway, and new shopping centre plans) you will find “times are a changin” for the better[biggrin]

Jo

Ditto both sentiments!!! [thumbsupanim]

As for firefighters, yep I fully agree; after working with one of Victoria’s fire services I know first hand the dedication and hard work these men and women put in, in the hope of saving life and property, and at the risk of their own lives!!! [angel]

Cheers,

Jo

People make mistakes. Most people do their best to rectify them.

And they have!!!

The purchaser HAS done the MORALLY right thing!!! Which is great IMO.

I don’t care what you think Yack re which of us is right or wrong, I’m not in it to prove either of us as correct.

What I felt was uncalled for, was you implying I was “anti” fixing of the problem when I quite CLEARLY and REPEATEDLY said there was ONE option, and that was (again….) TO PLEAD (appeal, does that work better for you??) to the purchaser’s conscience.

Which basically means YOU DIDN’T READ what I wrote. I at least had the decency Yack to actually offer to remove a post which I thought MAY have been upsetting to you, good to see you were so thoughtful!! [blush2]