Replies Created | Forums | scott8afl

Forum Replies Created

Viewing 16 posts - 1 through 16 (of 16 total)

scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 5, 2008 - 10:00 pm
I dont want to rent to buy but I am interested in buying some property so if you want to sell let me know and we can come to an agreement.
I am also a real estate agent if you need to sell
Contact me at [email protected] if you are interested later on down the track
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 5, 2008 - 4:53 am
it depends from state to state.
In QLD if you had pre approved finance (which you dont) it can be done in 14 days. Since you dont have finance you need 14 days from finance approval until settlement. NB. it can be done quicker but they dont like to.
usually it takes 14 days from start to finish for obtaining finance or it may take longer depending on the docs needed but your case seems pretty straight forward so should only need 14 days at most.
Taking all that into account you really need at least 28 days for your situation.
However thats QLD and I know your in VIC so this may help or not.
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 4, 2008 - 10:29 pm
Qlds007 wrote:
Mr P
In simple terms you would enter into an Option with the Seller which gives you the right but not the obligation to execute an contract down the track. For the priviledge you make a Option payment which is deducted from the end sales price.
Assume you thought the property was worth $350K but you signed a Call Option and paid $5K to buy the property at $300K.
During the option period you try and find an end buyer and agree to nominate this buyer in the purchase contract on expiry of the option. Your new buyer pays you $45,000 for the option.
At the expiry of the option you now nominate the new buyer as the purchaser on the contract and he in turns settles with the vendor.
You collect the $45K and your buyer pays the stamp duty on his $305K purchase.
In some States you will pay stamp duty on the $45K but not all.
The fee of course will need to be added to your Taxable income for the year.
I have done this on many ocassions here in SE making a 7 figure profit on 1 particular property.
So what your saying is you purchase the option for $5K to buy @ $300K then you onsell that option for $45K telling the buyer that the sale price is $350K. so the buyer is essantially borrowing 90% instead of 100% of the purchase price?
Have I got this right or is there more to it?
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 4, 2008 - 10:13 pm
I know about lease options where you are the vendor but what about when you are the purchaser and want the right to onsell the property even before the owner can sell it himself
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 4, 2008 - 2:34 am
luckyone wrote:
Hello All, Does anyone happen to know if there is an electronic version of the cashflow 101 game available? I played the board game last night for the first time and absolutely loved it. I now want to get preferably an electronic version of it as then I can play against the computer (my friends aren't interested in investing or learning about it in the most part). Otherwise, does anyone know where I can buy the board game cheaply. I did a search through Google and the cheapest price I came up with was $299.00. I'm sure there are better deals out there. Ta!
try ebay
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 4, 2008 - 1:13 am
Mountains out of mole hills.
The fact is when you buy a property you only buy what is on the surface. For example. if you were digging in your backyard to maybe put in a swimmingpool or a bore ect. and found gold or oil or any other natural resource the government would have the right to claim that as their own. (If you were smart enough to tell them that is) as you look at any title search conducted in QLD you will see under
easements, encumberances and interests
1. Rights and interests reserved to the crown by deed of grant No. xxxxxxxx (xxx xxx)
so really even if that were true. nothing has infact changed
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 4, 2008 - 12:54 am
it depends what the houses are like in the first place.
they already know what it was like when you bought it.
So appart from market appreciation try adding things like air-con, patios, new paint
to a lesser degree gardens
these things dont cost to much to do but can add alot more in percieved value
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 10:38 pm
Im in agreeance with every one. You were there first you have claim to it. Its not your fault that they were lazy. Is it?
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 10:31 pm
well said RVP
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 6:06 am
thats because the properties that were bought by these investors were highly negatively geared.
When I was younger I used to work with a company that sold house and land packages ( i was there for 3 months) that was fine with me then I realised that they were offering rebates on the land then also on the house construction, which in turn put more people into worse debt becuase they had extra cash (roughly $30,000) to play with then blew it all. hense they eventually had to sell 6-12 months later very pissed off with the company.
Im not saying this happened to every investor out there but it inflated the prices in the area above the market value at the time.
This is a common problem when dealing with so called legitimate companies. Alot of people got burnt and by them trying to recoupe their costs burnt more people. So rental yields are crappy as you say because purchasers are forced to purchase at above market prices for the property they want
I know that doesnt fully answer your question but it is a start.
the second part is only an educated guess on my part but I dont believe that there will be to much more upwards pressure on interest rates which means that over the next 2 years prices will remain for the most part consistant with what we see today being that the market has corrected itself and now property is selling for marginally less than it was say 3 months ago
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 4:42 am
sorry forgot to add that while the price of property may be dropping the rental market is stronger than ever with very few vacancies around but tonnes of people willing to rent
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 4:41 am
blogs wrote:
scott8afl wrote:
Scramp,
Now is the best time to invest in property. What you say makes no sense at all. but you wait till 2011 and buy property at the higher prices and well buy now when people need to get out so sell cheaper.
so in 2011 look for a property I have for sale so I can make my profit from you.
Scramp makes no sense? What the?? You say "you wait till 2011 and buy property at the higher prices and well buy now ", by beeing 'cheaper' now I presume you mean after neglecting to take in mortgage repayments and various expense items? So tell me Scott-youhave obviously done your sums, what rate of capital gains do you need over the next 3 years just to break even? You can even throw in a 10% rental increase a year if you like. Please just tell me and I will go away….Im sure you have the numbers ready to go?
Hey hey,
Thats not what im saying. what im saying is scramp says that you should not buy. That is not the case at all.
I own my own real estate company and let me tell you, Now is when you should be buying and for the exact reasons he tells you not to.
Prices are dropping homes are becoming more affordable.
The one thing he got wrong is that this has to happen in order for investors to buy property at "discounted rates". Now I believe that this price drop will continue to be prevelent for roughly 2 more years but if you dont buy now and you wait for the market to correct itself then you will be buying houses at retail price instead of wholesale price.
Like some one once told me the best time to buy was 20 years ago, the second best time is now.
So while there is a lot of relevance to his reasoning there is also little relevance to it. its a catch 22 really
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 3:01 am
in QLD you can make multiple offers but if they are accepted you can not pull out unless you use the cooling off period which will incurr a .25% of the total purchase price penalty. If your looking at 10 properties thats alot of bread
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 2:50 am
Linar wrote:
Does anyone know what the current status is wrt personal info given by RP Data? I know that RP Data used to give names and contact details of property owners but just lost a case in the Federal Court against a Government department that won't give RP Data that info any more. RP Data says in a press release that they hope that the Department will continue providing personal information until an appeal is heard. Does anyone know if RP Data are still providing personal information and, if so, to who? Is it just RE Agents and Valuers or is it to anyone who is willing to pay for the info?
The reason I ask is that a friend has just done a property course where they will be given 3 months' access to all personal information through RP Data. My understanding was that investors/developers like me could not access that information.
Any comments would be welcomed.
Cheers
K
RP Data is still providing this info as it is a legitimate business and not a telemarketing company. The government has given RP Data the right to keep this information free and available untill the appeal is heard and the likelyhood is that RP Data will continue to provide the same high level of information it has in the past
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 1:52 am
CRASHY_
It occured to me that house price growth has been outperforming wage growth for quite a few years. The only industry benefiting from this is Real Estate agents. House prices have doubled in the last 5-6 yrs and average wage growth is around 10% over that period. Agent commissions are directly linked to house prices which means their wage growth is 10x everyone elses. They have been getting fat at our expense.
Im using GoGecko to sell my current house, thats $6k vs $12k it would normally cost.
Why isnt there more negotiation of commissions going on?
Hi all
I have to tell you, I am a real estate agent in QLD with my own company.
While you say that we are paid to much this is not the case. in actual fact the real estate industry has never had a "pay rise". so while you ask for a payrise we can not because we are governed by certain laws which prohibit this.
If your boss came to you and said I want you to do the same work but im going to cut your pay by $10,000 per year would you do it?
I think not.
Also you have not thought about the reverse effect.
House prices drop. your wage remains the same, ours doesnt.
While you have the option to negotiate your commission that you pay. you have to remember that you get what you pay for.
I have taken many proerties from GO GECKO simply because the house doesnt get sold because the agent has been lazy and not done their job properly. These atre the best clients to have for me because I know after ive done my job properly they will refer their friends and family to me.
scott8afl
Member
@scott8afl
Join Date: 2008
Post Count: 17
June 2, 2008 - 1:29 am
Scramp,
Now is the best time to invest in property. What you say makes no sense at all. but you wait till 2011 and buy property at the higher prices and well buy now when people need to get out so sell cheaper.
so in 2011 look for a property I have for sale so I can make my profit from you.