Forum Replies Created
- jsawtell wrote:
If I buy a property as an IP,
So you buy the property with the intention of making it your PPOR within 12 months of the purchase and only pay to PPRO rate. Can be relevant if at the time of purchase there is already a tenant in the property. Good question about the refund though, hope we see a reply.
Next time you consider auctioning one of your properties think about how scared Else. Luckily Else will show up on the day. many buyers wont. Sure they got to do all the work ahead of time but many are put off. It's a personal choice though.
The boom is on. RBA might be having something to say about that though.
Some figures coming out the Sydney market today put what yesterday was a slim chance of a rate hike much more likely. In an election year too. A labour win, well a "Glorified political staffer" running the country, unlikely.
Public Policy, broadly the cost of housing increasing beyond the average wage earners reach is a hearts issue even if the minds are much further behind. Thats gotta be on the radar. Demand in particular areas in Australia could result in social displacement. People on the streets. They are already there, they just haven't made the weekly news cycle. If interest rates are on the rise some of these displaced Australian's (battlers) will become household names.
Government intervention – the process has begun with a greater focus on the freeing up of land for development. Are we looking beyond the trends and towards the intervenors for answers?
Intervention – Government policy can be unpredictable and have unwanted outcomes that then require greater intervention/correction. First Home Buyers Grant a case in point. Let the market be. That ain't going to happen though.
I like your thinking, but does Beachmere have a rail line? I'm not sure that it does.
Yes that is a great project in Beachmere and the Council has plans to spend a further $2.2 Million on upgrading the town centre there.
Its a bit more on the sunshine coast side as you say where as Burpengary is more in between Brisbane and sunshine coast another 20 or 30 minutes or so.
mcfarland@goldenedgehomes wrote:are agent's allowed to keep a portion of the .25% legally…. I don't know….they are contracted to sell the property & are payable on settlement usually… if the property does not settle
can they claim a payment.??.. let me know… or should this be a separate topic???michael
if the termination penalty (Cooling off 0.25%) is due and payable the Client and the Agent will equally divide that amount taken from the deposit.
Guess you're right in part that the "Commission" is payable at other times identified in the appointment to act.
The termination penalty/ies are under the standard terms and conditions of the 22a shared amongst the agent and the client.
Noting though that if the 0.25% exceeds the deposit there are no provision for recovering any difference from the Buyer. That's why agents insist on and so should the Sellers on obtaining a healthy deposit held in trust.
AmandaBS wrote:It looks like this matter is sorted out now, but my understanding of the Qld finance clause is that the buyer "must take all reasonable steps to obtain finance approval" I suppose what is "reasonable" is open for interpretation?Michael I don't think you could ask a finance broker to write a letter saying that your finance has not been approved without taking all the necessary steps.
The Buyer must take all reasonable steps to obtain finance when the finance clause is active in the standard contract used in QLD "6th" but the Buyer has the right to satisfactory finance.
So reasonable could (as you state) mean anything but the finance still has to be on terms satisfactory to the Buyer anyways. The Buyer may determine that XZY is the satisfactory provider and that provider was uncontactable or unable to process his/her application in time.
KA010 wrote:Hi all,Iam in QLD. No I already have buliding and finance in contract. I understand that because my solicitor or myself have not seen a signed contrac from the Vendor and I have not paid my deposit that there is no binding contract?!
Cheers Mat
If no money is exchanged there is no contract.
Gaining a copy of the contract…well the Buyer was fully aware of the terms and condtions of the offer as presented to the Seller (its the Buyers' offer) gaining verbal confirmation from the Seller or the Sellers' agent that the communicated offers is accept provides for "offer and acceptance" (contract law).
AmandaBS wrote:We actually had someone terminate a contract under the cooling off period several years ago on a property we had for sale, so the .25% was deducted from the buyers deposit. However we only got half of that as the RE agent kept the other half !!Check your appointment 22a in QLD the standard terms state the .25% will be shared between the agent and the seller. Its right there in the terms of the standard appointment to act.
Well what else can you buy for $190,000 with a return of $200 a week? Not much.
Under $300,000 is fast becoming a distant memory.
But I guess you're here to make the most out of investing.
Houses in areas like Beenleigh are becoming more valuable as the opportunity to purchase them under $300,000 is disappearing. Supply and demand is at play in the South East Queensland market and PNP growth is at the core of that. I have recently seen properties go on the market $15k over the appraised price and sell within a day.
Units have a limited land component but that's an obvious given.
The question stands what else could you buy for $190,000. Look for too long and you'll miss the boat.
Guess you get what you pay for! Its just another learning experience.
If you first seek to cut costs and get a hand from a DIY agent (yeah that's what they are) what do you expect?
So from extreme to extreme.
Some agents at the other end of the spectrum will charge you their normal commission and heaps for advertising too. They're the agents who will whack a massive $500 photo sign out the front of your property which blocks the view from the street with (yes you guessed it) a photo of the house on it.
Simple advice; when selecting an agent see 3 agents min before you select the one who gives you the most realistic presentation for your property.
Select an agent who can identify where the buyers are likely to come from, who they are and what marketing channels they will be found in.
Unfortunately the reality is if you point the finger at the agent you have more fingers pointing back at you the seller who put all your trust and faith in what?
If you're really stuck for a good agent contact the REI in your state and straight out ask for a recommendation.
Finally, anyone who has ever sold a property never makes the simple mistake of selecting the wrong agent twice without it costing them double.
Wow thanks for you reply. So the area seems to have all it takes to support a good IP though.
Thanks Again.
The most important question to ask a potential property manager is this. Do they currently own an investment property of their own. If the answer is no they had better tick all of the other boxes to even gain your consideration.
I'm very familiar with the area you're talking about and generally the conditions are still improving for improved rental returns. The quantiity and subsequently the quality of tenants in the area is on the improved too. Previously properties would have rented to the first applicant. Now a property should attract 5+ applicants and 2 or 3 of them will meet the selection.
The most reputable agents in your area are agents who have managed properties for decades, who own investment properties themselves and have experienced the booms and busts of managing properties.
Feel free to contact me for a referral should you require one.
One day she'll learn you'll make the most money being nice to the agents. Some can play the game others just complain!
reelygood1 wrote:Hi Tony, Okay let us know where you made the dosh??? No specifics, just the city, suburb, steet. I have just put a deposit on a 3 bed unit with 180 degree views of bay myself at Deception Bay for $360k, hoping to do the same within next 12 months. Don djrJune 2007 – That worked out well did it? I think not.
Still have $360,000 to spend or is that invest?
TracyD wrote:On a lighter note, I bought at Deception bay last year and they could do with some DECENT AGENTS! So , go for it! I think that area will run hot for a while, so you should be able to make some good commission! I considered getting into property management years ago because I love property, but after careful consideration I decided that I love investing, not working in the industry for other people, so turned the job down. So just be sure you are interested in the hard work that goes with cold calling, inspections, set targets etc…. Good luck! TDSo thats what realestate is all about.
Laws vary from state to state! As such some of the below may not be accurate in your state.
"This is not a law, and you can set the terms of the Sale authority as whatever you like."
"and if they say yes then write the amount on the contract and cross out the sections where the percentage of sale would go"
$5,000 and pay for advertising. Guess some Sellers get what they pay for?Setting a flat fee. Does that really give the agent an incentive to get you the highest price based on a comparison with % professional fee?
As always make sure you do your own investigations.
One thing is for sure you can contact the REI based in your state for accurate consumer advice.
Valuation is going to be the best and most reliable measure.
Try searching in the area for vacant land already on the market.
Try adding back the value of new house and land packages in the area
There is no easy way to determine the land value exceptt for looking at the market as valuers do base their figures on recent sales
Obviously many local authorities calculate rates off valution which is not a refelction of the market value of a property.The market is red hot in some suburbs, so you're right on that. Houses are selling within an hour of listing around the $350,000 and below. Properties priced right are selling within a week.
SEQ, many are now telling the story of prices on the rise by $10,000 a month. I can say that prices are starting to catch similar suburbs to Perth.
3 Bedroom brick and tiled 600m2 30km from CBD $285,000 under-contract in one day without the buyers inspecting the property.
4 Bedroom brick and tiled well presented house sold in one hour $350,000+.
Two bedroom on 450m2 loads of work to do 500m from the water $277,500 Auction over 10 competitive bidders.
Anything good wont stick around longer then a week. It's a mixed bag but in the Under $400,000 the market is red hot or warming up in many suburbs. Rental returns are without a doubt better too in SEQ compared to Perth which has some of the highest management fees and close on the lowest returns.
The fact that many sponsored (say REI) agreements contain the 90 day clause would suggest its an industry standard.
Savvy investors are inserting their own clauses with regards to if the property becomes vacant that they can allow all agents to let the property.
Many agreements do say the owner can only appoint one agent and the client must give 90 days notice. Practically speaking transitioning a management to another agent is something that takes time. Rushing it may end up with tenants paying rent to the wrong agents and all that sort of mess.
If the agent is really bad and your next agent is keen for your business they may even payout any notice period and move the management early.
Similarly the agent must give notice if they want to end the agreement and sack owners.
Finally if you're going into the relationship looking for the exit perhaps you've got the wrong agent to begin with.
