I have purchased my first home in auction and i learnt a lot from it.
never start bidding immediately just let it flow and then when it saturates u can start bidding.
the most important point is after u bid and no one bids the real estate agent will say the owners are noo willing to sell at this price and he will try to negotiate at that stage ,be sturbourn and dont even increase a 1000 dollars.
That the sign the market price has reached.
one more thing dont show that ur eager in buying anytime.
in case ur taking ru family with u ,in that case dont make serious conversations so that the dummy bidders know ur emotional biding.
last but not the least.set a target and dont be emotional.
if u have to loose it u still can get beter deals.
have this attitude.
Because you can get 80% doesnt mean the area is bad, it means that the area has been saturated with alot of investors lately or First home buyers paying inflated prices for house and land packages and the mortgage insurers wont insure for 90%. I have heard that you cannot get LMI for the Latrobe Valley and Narre Warren South!
since u have stated that its already saturated or prices or inflated does that mean any new investors should take it negative .
iam a little confused with the few terms like thanks Michael.[?]
iam a little confused with the few terms like company trust and discretionary trust.
if there are website where i can understand these trusts structures?
I am a newbie i just dont understand.
for example if we start a company trust c1
we three are beneficiaries b1,b2,b3
we want to buy a propertY X.
say for example we each deposit 16,000 dollars toward the trust.
the trust has 30,000 dollars now.
the property we are looking for is 350 K.
deposit
the total thats in trust is 48,000
now if our contributions is 25,25 50 then its 12,000,12000,24,000
is this right.
if so how much does the trust get taxed is it 30%.
and when we try to seel the property we wont get the 50% rebate on CGT. Make sure you each protect yourselves (your current assets) from each other
how do u do it.