If you are aware that the ip you are looking at is a bargain and would possibly be snapped up, I tend to pay asking price, also area has a lot to do with it as well… if it is a sellers market you will find that most agents will tell you that the vendor won’t negotiate.
the last property I purchased, the b/insp came back with a few tiny things amiss (the majority that the vendor fixed at their cost)I mentioned I was not happy with the building report to the agent, and within 1/2 hr the vendor dropped the price by a further $15,000.00, also mentioning that “finance” has been approved (but not to what amount) helps. Another house was being auctioned and I offered a price and was rejected, I let the house go to auction, I did not attend, it was passed in, and I purchased it for $5,000.00 less than I had offered prior to auction.
If you keep offering low-low and keep getting rejected than you may have to adjust your strategy.
Mopsy
If you are on Centrelink sickness benefits you would be able to still get a loan if your serviceability was 70%. However, if at the proposed end of your sickness benefits it is replaced with social security, ie you dont go back to your former employer you would be struggling. But…. if your sickness benefit is a Workcover benefit meaning that you go back to your former employer once all is healed you would qualify now for a loan on your former salary.
I would refrain from using the term “itchy feet” to the bank.
If you are not going to be in gainful employment at the cessation of sickness benefits it would probably be best to wait until you gain employment then use your $20k + your equity component to purchase +cf investment properties.
another avenue is to purchase one and renovate and sell to maximise more cash flow to put towards deposits on properties.
Being a reasonable distance to a major capital city is advantageous, plus there are the wineries with in easy driving distance. You will always have a rentable market… I would say, “go for it”
I have properties in a town that some people may not be interested in, but the properties have rented at $110.00 (pp $68,000.00) and the town is a strong farming area but has the infrastructure of a major aviation centre having just been completed by one of Australias largest property holders (shopping centres).
more and more city dwellers who will be lifelong renters are retreating to the “country” as affordability and lifestyle necesitates change.
I am single, and became “conventionally” unemployed but had business and rental history. However, my two banks of 20 yrs, refused an application and I received a loan for another investment property with a bank I had never dealt with which was Westpac. That was 7 years ago. I now deal with two banks and have an exceptional property portfolio.
If you wish to discuus any issues in length don’t hesitate to contact me:
ljenaway@ bigpond.com.au
Lynette
In qld I have an excellent solicitor who does my conveyancing for $375.00.
I am yet to find a satisfactory one in NSW, on average NSW is $700.00 – $1,000.00. I am trying a new one at moment and he seems amiable. You have to be able to communicate efficiently with same, and if you can’t do that … move on until you find one where your working relationship is great.
For detail on Qld feel free to email me at: [email protected]
I have POSH (property owner software) the email help is not much help, as they take forever…like months to get back to you. I have a few gliches with the interest rate section.
The income and expenses section is a bit slow re; entering data and it doesn’t have an area “find transaction” which can be frustrating.
i keep a second backup entry system in
ms money, which I am familiar with and can compare both.
For a lot of properties it is ok, you can even add photos of each property which is a bonus….(in case you forget what it looks like..haha)
lynette
There is another way to renovate “now” and claim…later…..Case in point: I had purchased a property that had tenants from hell installed, subject to vacant possession…..I almost cried at the clean up…. so I just thought quick paint job, second hand carpet , lots of elbow grease, but… when trying to lift tiles in bathroom the floor fell out…long story….so had no option but to do 80% reno. My tradesperson, works for himself……. so he did all the work , I paid him cash at complettion but he gave me an invoice dated 11 months later.At time of puchase it rented for $150pw after rents at $240.00 reno budget $10,000.00
I have landlords insurance with Terri Scheer and Rent cover but it doesnt cover unrented periods, only loss of rent thru damage, or fire caused by tenants, unrented periods only due to damage etc.
You would have review rents if you had that many properties vacant at the same time. I have experienced one maybe vacant for a short time at the same time, so I would hazard that it is extremely rare to have so many unrented. So I wouldnt let that idea stop me from continueing to invest.[]
Forgot to mention, as a point of interest…….
my bank has changed it’s serviceability to 70%, plus they will only accept an annual valuation on properties, which you are stuck with for twelve months and will now only look at each property on its merits.
I manouvered a “total amount to borrow” figure before the interest rise, which is available only for three months ( you have to use it in three months or go back to the drawing board, re apply)
but I have noticed that my bank is becoming very cautious.
I have found over the last couple of months some exceptional bargains. But also some I wanted were snapped up before the ink was dry on the sale add. I had started to buy “high end” properties but the rental return is not equivalent to a number of “low to medium” properties. I fixed 8 ip before the rise, left 3 which have now gone up to 6.45%. And have a number freehold. The reason for this is the fixed ones I can’t theoretically touch for 4 years, but the 3 I am ready to sell in a heartbeat to re-purchase another bargain or to wrap and then re finance. My rents are all pcf. Lucky with great tenants.[]