Hi cathnniv,

You mean apart from this site? [smiling]

You want websites or actual seminars?

I like to surf on over to Somersoft too, which also has a strong property theme.

Cheers

Not enough info

Are you planning to finance 80% of the purchase price? If you’re financing 80%, the weekly (interest only) borrowing costs would be about 145 per week before holding costs.

Over a year, that would be less than $800 cash flow – not nearly enough to cover holding costs of rates, repairs, management fees etc.

If you left a 20% deposit of 28,000 in a bank term deposit you’d get about 1,600 (before tax)

And I haven’t even considered transaction costs of buying.

On a cash flow basis, this looks cash flow negative

Can you afford to carry the losses until there is a capital gain?

Only you can decide.

Hi MrSmith

Interesting you should ask, I’ve been thinking about negotiation strategies myself lately. The negotiation process is not transparent – hence why owners/REA’s can make money out of property by getting someone to pay more than the going rate if buyer doesn’t do due diligence/falls in love with property etc.

Without being able to see inside the REA’s head, it doesn’t seem from your description that anything untoward was happening here. I’m not a REA but it would be standard negotiating tactic to ask for the details of your offer first. Sometimes negotiating is like a game of chicken – the first one to reveal their true intentions may feel at a disadvantage! But that’s not necesarily the case – your offer was made in good faith, and for all you know, could have been the only one.

Investors who put in offers need to have nerves of steel to prevent them putting in full price offer, sometimes! REA’s wouldn’t be above using any subtle pyschological tricks – and can you blame them? You need to know the tricks and how to counteract them – I personally use barefaced cheek!

The REA is meant to put all offers to the owner – so it’s up to the owner to decide whether to gazzump. Also REA should act with integrity towards you as commission isn’t paid until settlement – only approx. one third of offers turn into a contract. You’re still in the game and she knows it.

I put in a low offer recently on an IP, which was rejected, and waited 2 months for vendor to come back to me saying he couldn’t find another cash buyer higher than my offer! It’s a sweet feeling! But I was beginning to think should I have offered more – good thing I didn’t, patience was a virtue in my case. I held my position even though my emotions were telling me to pay more ‘cos I liked the property!

The negotiating process doesn’t necessarily have to be quick, easy or concluded in one conversation! And as a potential buyer, you are probably the party who is most in the dark – you just have to make your best offer according to the market.

Of course it could all be over if the other offer goes thru – in which case you count this as valuable experience and move on the the next negotiation.

Hi Jaawz0224,

Why do you think it’s not worth the asking price? Did you mean to write 25,000? That’s very cheap?

No matter what the asking price, you can get info on house prices a number of ways. Some websites have limited info on recent sales/auctions. So if there have been recent sales in that area, you might get the info for free.

If no sales have been recorded thru the free websites, then you can get info thru one of the paid sites at about $50. The report would give you all sales in that area for the last year.

Or for around $200 (but shop around) you can get your own impartial valuation done by a Valuer.

There is always the option of calling local real estate agents and asking. They may or may not be able to advise, especially if you would be willing to look at a comparable property on their books…

Good luck

Do most houses in Mount Isa have air conditioning?
Would you find it difficult to find a tenant for a house with no air con?

Hi,

A quick search of the internet showed me a lot of links to free lease agreement templates. Regarding bonds, you contact the relevent Rental Bond authority in your state, their internet address may also have pertinent information. But most importantly, learn the rules and regulations – or pay a professional to do so for you. It would be a false economy to save 5% in letting fees only to find you missed an important clause that cost you thousands….good luck!

Hi Hobnob,

Well I certainly wouldn’t call myself a mentor at all, but here’s my suggestions for what they’re worth.

You’d need to check again with one of the excellent brokers who contribute regularly to this forum, but my belief is you may not qualify for a “normal” loan thru traditional bank, therefore you’d need to get creative.

Would you be a good candidate for a wrap (as the wrapee)?
Also another option could be a lease option (correct term?) where you rent but have the option to buy at a predetermined price?
Or you could buy a property jointly with someone else you trust, family member, whatever, they could provide the deposit and you could provide the servicing, or however you want to work it.

Just some ideas…

Best regards

Dear dhen,

I do empathise, I’ve been there myself. We bought a house near Byron Bay a year ago, and it sat empty for 5 months. We dropped the rent until we started getting inquiries, but no actual takers. Then we eventually found a tenant through a friend of our local friend – Property Manager had no success. We also took a risk on young tenants with no rental history, but they have paid rent and looked after the property faithfully.
So we got tenants by taking a risk.

Cheers