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Looking for property again after a long time out of the market. Up to 57 now, getting to know every agent in area, keeping a spreadsheet going so that I can remember each one, and just starting to get a feel for the market in a fairly small area.
Have made 2 offers, both knocked back – that's fine. In no hurry and prices seem to be steady or decreasing.
Leg work will pay off.
This is very interesting. I went to a property today and was shocked to find that it had a massive powertower right in front of the house. When I looked at the photos, there was no sign of it. Who is the agent kidding?
I wouldn't have wasted the petrol to go see the property if I had known how huge this power tower was. I didn't bother going in the property and have made notes that photos from this agent could be quite deceptive in all his other properties.
kameruka wrote:Property Anaylsis Year Purchase Price 8,000 Title Work 700 Renovations 5,000 MONTHLY COSTS Property Management 10% 80 Property Maintenance 10% 80 Insurance 1200 100 Taxation Rates 2500 208 Rental income 800 Cash return per month 332 cash on cash % 29.05% ROI 70.07% Singer, I hope this is ok?
Please ask and i will do my best to answer any questions.No, not really. These seem all theoretical, especially the rental income. Unless I see an address and hard information I continue to be sceptical.
That's shocking. There's a big crackdown going on in Brisbane right now about that – lots of people being fined.
This is an article from last year, but there was a recent one following up in the last month or so.
http://www.couriermail.com.au/news/brisbane-city-council-crackdown-on-over-crowded-housing/story-e6freon6-1225775177929What you need to to do is go beyond the work that real estate agents do.
Pile on the facts and figures of the location, the town, the history, anything. Especially put in a plan of the place – once people hear shopfront and residence, they want to know exactly the size and placement with dimensions. You must put the address in your listing. Explain why the commercial part was vacant and everything else that you previously wrote about. Post all your taxes and insurance, water bills – go bananas. Aim to have the longest listing on the website. Information is good and it will eliminate many tyre kickers.
REA skimp on information because what they want are phone calls to get more listings. You have no reason to skimp on information. You have every reason to write a book about the property.
I agree with Ryan about photos. Take a lot of good ones, put up as many as are allowed on the rea website and offer to email more if necessary.
Also, when you have open inspections, have them open for hours, not minutes. Every day including Saturdays and Sundays. Really outdo the agents – they can't do that but you can.
Negotiation is a different matter – and once you get an offer, this will be the tough part. You'll need to develop a rhinocerous' hide to deal with this one. You need to be ready for those people who come in 10 minutes after your property has listed with an offer which expires one hour later (being on the other side, this is how I put pressure on sellers). Know exactly what you want for your property and negotiate firmly. Read a few books on negotiating perhaps. I don't have any recommendations but there should be some out there which give you some ideas.
All the best, and please put your property up here on this forum when it's ready.
Wish my family had heard about a bloodline trust years ago. My parents owned a beautiful dairy farm. They split it in half and two sons worked each half. They had some kind of joint trust arrangement with each of the sons. Guess what. Both boys divorced. Guess who got the dairy farm(s). The women.
It's caused a lot of heartache. My parents thought they got the legal stuff together to figure out how to keep it in the family but ended up with country hick lawyers to screw it up. Rural people really mess up their agricultural holdings terribly.
Get the best legal advice you can and don't sign anything until you understand every last bit of fine print.
businessglobal wrote:it is still rare for women to make business/ real estate decisions quickly, sign up an offer, pay a deposit and make solid business decisions.Really? I'm surprised. I'll use the "have to ask my husband" thing if I feel like backing out of a situation without further discussion, but in reality I carry around a copy of the power of attorney form which he signed just so that I can do any negotiating quickly.
No, I never go to auctions any more. I just can't stand the hype and the antics of the real estate agents. It's the strutting around like peacocks thing.
I have yet to see anyone say something like " I bought this property for $x – I spent $x fixing it up – I pay $x in PM fees, property tax, local govt. taxes, state govt taxes, fed govt taxes – it is now tenanted without any problems and I am netting $x per month".
You can get it on the big internet sites with http://www.landlordschoice.com.au/
Post more photos – bathroom? Bedrooms? More outside shots – street view with the neighbours' house in too. Do what RE agents can't be bothered doing. As a self seller you have to go beyond what they do because you can – it's not costing you any more. Write more. The more details the better, and the people who turn up will already have a good details about the place.
I agree with above poster who says that people are wary of going into homes being sold by the owner. It's way better to have someone else there who doesn't have a passionate interest in the house – like a friend. I can't stand listening to how wonderful a house is from the owner – REagents are bad enough. I already know within 30 seconds what a house is like. I just want to go in, take a look and make up my own mind without the constant verbal diarrhea from the sellers.
Open home times – it's interesting in Australia how short the open times are. Do what they do in the USA – open it up from 1 pm to 5 pm. Keen buyers spend their weekends scrambling around trying to get into each open house at the right time – if they can slot you in easily somewhere between the ridiculously short opens at the other houses then they will. It's the one advantage self sellers have and yet they never seem to take advantage of it.
Hope this helps – good luck.
Good post Sapphire.
Anyone can buy a cheap house in the USA. That's the easy bit.
It's the after wards that is the hazard. From snake-agents to PM's to property and govt. taxes to tenant vacancies – that's when the nightmares begin.
And you can't even claim any of this stuffing around off your Australian tax.
The rental market in some pockets of Brisbane and surrounding areas is in a very odd state. We have a property next door to ours which has been on the rental market since Xmas time. We can't see anything wrong with it and the rent (steadily dropping) seems reasonable.
From a renter's point of view (we have owned IP's as well): Those townhouses rent easily in a tight market, but the rooms are just too small when you have a choice. No amount of clever photography is going to change that. The living area is cramped and if you stick a kingsize bed in the master bedroom you have to suck in your breath just to walk in the room. We take one look and don't bother going upstairs if the living room is small.
We are currently looking for a new rental property in Brissie and find that many of the same properties we have viewed a month ago are still available. One property in the Wynnum/Manly area that we are interested in started at $400, then has gone down by $10 to $360. We think that's about where it should have started from. We don't feel the urgency in the market like there was a year ago – good for us, but a bit nervewracking for the owners.
It's interesting reading all the media reports of a "hotting" up rental market. Seems asleep to us.
Is this thread a joke? Is someone actually using this guy? Any transfer of funds is probably going in one direction only – away.
It's always been a turn-off for many people that they charge a percentage of the selling price. Where is the incentive to get a lower price for you? The higher price you pay the higher their commission. Weird.
Why not? but only if it was an IP suitable for families. No good having a 1 bedder with singles or oldies as a target opposite a school.
smoule1 wrote:Does anyone know of a good financial advisor in the brisbane city region?
Talk to Richard.
Since you've come on a property forum you must be interested in property, but most financial advisors will see you as a sitting duck. Most will convince you put your money to work in managed funds. Of course, they will want to manage the funds and collect the commissions.Todd Parker wrote:I will let you know how it washes up.Yes, please do – we have been wondering about this too. Very useful topic.
To graham- thanks for the heads-up.
PQ wrote:The honest ones will sign an agreement with those clauses
No PM I met in the USA would sign such an agreement.
Just awful. Cuts out a whole lot of future buyers in the case of re-sale too. Many people don't buy houses which are below the level of the road.
mortgagedetective wrote:"I wouldn't dream of offering $32,000 below the asking price After all they've gone to the trouble of renovating and used their expertise to get the colours right… I'm not that good with colours"
Hi Michael,
I don't think your analogy is in any way comparable.
If you get cut price mortgage broking you are getting cut price expertise. Over the long run, if you get a loan or multiple loans which are structured in just the right way for your situation, then a buyer can save hundreds of thousands of $ over his/her investing life.
There is no way I would risk getting loans from anyone but an expert /full service mortgage broker , and that person is not going to be in the commission rebate game.