Forum Replies Created
My thoughts exactly Richo..
Jason..
I know that feeling Anna…
Earlier this year, i saw an IP, bid, haggled on the price but agreed on an ammount the seller would be happy with. shook hands, was told the contract was on its way to solicitor, and i was getting finance company ready to do inspection…
The agent told me this while i was driving home, ie 2 hrs into a 3 hr drive… i told the agent this, and asked is the offer binding as i wasnt about to turn round and drive back another 2 hrs to leave a holding deposit (would have been closed by then anyway).. she said it was fine, as it wasn’t necessary…
3 days later no contract as yet, called agent, only to be told it was sold the next day to another person… i was given the line “Its out duty as agents to attain the highest price” …
NOT EVEN A PHONE CALL!! (she was probably ashamed of herself)… and the offer would hav only been $500 – $1000 above mine at the most!
This sort of garbage gives many agents a very bad name…. the same day i inspected another property, with the agent across the rd, put in an offer, but didnt get a reply till 4 days later… I told them my story about the agents who did me wrong just across the rd.. well at least the second time round the deal stood firm…
Sometimes i wonder how these people sleep at night???
Jason
Hmmm Im still looking for my wallet….
The last block of land i was looking at buying was also part of a huge sub division… (ie the hard work was already done… i think the original parcel of land was around 1000 acres…
BUT! The Agent told me the conditions of the sub division was that power needed to be to the boundary fence at least (of all blocks), and all the blocks needed to be fully fenced… (some other large sub divisions also require phone lines b4 getting passed)
Which means maybe 1 km of power to pass, and many, many kilometres of fencing… which would cost a fortune! (the person selling the sub division bought the land many years ago, like the time when land couldnt be given away, and a farmer would never pay anopther person to fix fencing…)
Perhaps u should look into the conditions of a possible sub division b4 seriously considering a property because 800K would be nowhere near enough!
Just some things to think about….
Jason
Kay…
Teaching in Japan has been an option i hav looked into, as well as London and even Korea. my holiday is going to also be an info gathering exercise as im staying in London new years with a school friend who is also teaching there… she loves it
Yes, i am an actual real life, fair dinkum primary school teacher lol… but ur rite about not needing proper teaching qualifications (but if u got em u do get a fraction more so i been told) i also hav a degree in DT
Im off tomorrow, woops i mean today (sunday) to the backpackers and travel expo in the sydney town hall, just to hav a sticky beak lol… should be fun
All the best Kay, hav fun on your trip as well!!
Jason
Hey there Jake,
What maths you do at school is the least of your concerns my friend, u need the drive to succeed when you put your mind to a task!
I believe that knowledge is power, and you are going in the right direction going by the books you are reading. the fact that you hav not paid anything to get this information is also a good sign, i think i read in another post that only 1 % of the ppl that go to property investment seminars actually use the knowledge to invest in property so the more free knowledge u get the better!
My advice to you? Try and save as much money as you can, invest in a bank that pays high interest rates for a start, and add to it as often as you can.
Dont get advice from people who are not passionate about investing! at times u may want acknowledgement from other people that you are doing the right thing…. if you speak to someone who has blown every cent they hav earnt on rubbish, is renting, and is expecting the pension, then they are not goint to want to know about your thoughts on buying property…
Get a job and stay there as long as you can, this will help you when its time for finance.
Start small, and WORK your way up.
Stay at home for as long as you can, not only will this help you with your expenses, but it also looks better on a loans application form.
Just remember, every dollar thats wasted pushes your dreams of being a property investor away by a dollar. dont go getting a new car under finance (like your friends) when its time, buy what u NEED, not what u want…
If u believe in yourself, then you can do it, and the more u do it, the easier it gets!
All the best, stay tuned
Jason (24 and buying since 20)
Thanx Kay,
I hear what your saying, this year i hav made 4 property transactions, 3 purchases and a sale. i hav the long term goal of being home when and if i hav kids as a full time dad. i finished 5 years of full time study just last year and in all honesty i really need a break.
Its my personal opinion that real estate is the best way to financial freedom, but i also think that the somewhat un natural growth in property is going to cause issues down the track, and sooner, rather then later. im not trying to say its all doom and gloom, but i am very cautious.
My last Purchase was in Cowra, and we all know, (according to another post), that the empty rentals are growing… but i must say that i hav invested my money wisley in my opinion, meaning that if 1 property should fold, others will be there to support the losses. If i find a property that fits into the 11 sec rule, then obviously i will seriously consider it, as i did with my other purchases..
Im glad to hear that your property has returned such a large percentage of capital growth in such a short time, but the tickets to europe hav already been paid for and im taking an extended holiday, with wiews to perhaps work overseas for a few years (another dream i hav had since starting uni) if this does happen, i need to start looking into investment mediums that are maintenence free, such as cash and fixed rates..
If my goals were to keep buying, then i would never consider anything but property. but i think i hav a portfolio at this point in time that will take care of me in my older years, allow me to enjoy life right now as well, and gives me options should i choose to start a family, or move out of mum and dads home, or whatever i decide to do that requires financial support, therefore at this point in time im 100% satisfied with my acomplishments.
Anyway, its late, I hav said enough lol
Although my question was not answered 100%, it has given me many more ideas about what i could invest in, thanx for all your input
Jason
Perhaps u can throw in “pending finance approval” seeing as its rural
As for the deposit being payable on submission of an offer? perhaps you are referring to a holding deposit of .25%??? even then i hav only had to use a holding deposit once, on a property that was undervalued and that generated a ton of interest… the 10 or 20% deposit is after u exchange, when the conditions of your offer has been met of course, just post cheque in mail lol (but some agents can take a card payment i hav been told for deposits) … perhaps the rules are different in another state????
Hope i hav helped!
Jason
Yes i was looking at Citypac as well
http://www.fincorp.com.au has 8.5% for 1 year
http://www.citypac.com.au have 7.1% “at call”
and 8.35% for 12 monthsJust open the money section of the Herald, and there i was all day running round the banks thinking anything over 5 % for a year was worth putting money into lol
All the best!
Jason
Thanx…
I havnt delt much into shares to be honest, i do hav a few, and was close to “investing” in Big Kev when he floated (now there is a contradiction) .. lucky i didnt!
Im also listening on the news that shares in a company that trades overseas are declining due to the weakening us dollar? ie BHP, which is considered a “blue chip” isnt it??
But in the end of the day isnt it all a gamble? I hav invested hard in real estate since i was 20, and havnt made a wrong move as yet (to the suprise of many of my peers) and in the current market i think i should put my real estate persuits on hold and diversify.. shares are an option, but im treading carefully… a certain float in the next week has caught my eye, so im gonna put sum towards that as well…
Very interesting to see what happens in the next year or 2, real estate, shares, the dollar, everything lol.. i was cringing when i went through an old “homes pictorial” from 2001 last night…
time will tell!
Jason
Thanx Terry
The re-finance i mentioned was interest only btw
… i guess i will investigate this further once funds hav cleared, the paperwork is still going through Jason
Thankyou for your feed back Richard
Yes, i hav found financial establishments that will invest your money at up to 8.5% for 1 yr in Unsecured Deposit notes… (and another at 8.35% for 6 months if memory serves)
So the extra interest that will be payable if i withdraw the money is not a claimable tax deduction then??? What if i can prove that the money was mine to begin with? ie pay from work or the profit from the sale of a property?
In the end the money made isnt that much i guess…
I re-financed some of my property at fixed rates (3 days before the .25 rate rise – YAY) and pulled all available funds in the process, which was then used to offset another loan that i want to keep open, but just left a few grand oweing.
So the basis of the question was to also work out if i should just invest what will esentially sitting in a bank account, or take it further and invest some more….
i think u hav answered my question but, im gonna put all i can into the loan and whatever is left over will be invested only…
Thankyou, sorry to confuse lol
Jason
riffraff,
The way things are going with rentals at the moment, i would rather hold on to a tenant then try and increase the rental with the risk of them moving. What are renovated units renting for in the street? (how many are vacant???) In my experience renters in units are less inclined to hesitate when moving out, caus there may well be a unit thats exactly the same in the same complex, or down the street for a lower price…
I wouldnt remove a tenant to do a renovation either, Any major work i want to do that is voluntary (such as a major renovation) is best done between tenants in my opinion!
Perhaps the renovation money can be repayed into the loan for the time being, reducing repayments abit, wait till the person moves out then renovate. in the mean time a rental increase of 5 or 10 dollars might not hurt if the owner believes its fair.
How does the tenant feel with the property? are they constantly winging about trivial things? are they constantly late with rent? are they unsure about their future in the conversations u have when doing an inspection or changing a leaky tap?
Just my opinion, all the best!
Jason
I was thinking area wise it sounds like bathurst??? am i rite???
just a guess but!!! hope it goes well for u akyboy, 5.8% as a variable rate sounds very low to be honest, perhaps its just a honeymoon rate? not saying ur wrong but… just thinking while im typing!
Well, hope it goes as planned….
Jason
And be sure to call council about ur plans for the land… many new subdivisions in regional areas do not allow for townhouse / villa development…
What did the previous stages sell for? how long did they take to sell??
Woops!
Sowy Polar_Bear my mistake
i was talking about a different Campbelltownlol
[
]Cheapest way is to do as much as you can yourself!
Jason
Yes i hav bought in a housing commision street just recently in Bathurst
Was very affordable compared to places a few streets away, rent was very good compared to price as well, bought vacant, stayed a few nites, had no problems…
whats worse i guess was that the whole street was boarded up, but then i learnt that the housing commision ppl were getting shipped out, and out of a whole street there was only 3 families to go,,, word is that the council / government is gonna sell em off to the public, or the land is getting bought up as a whole and re developed into new villas / town houses… in any case no problems as yet, and in the not tooo distant future the value will rise (lets hope so)
get heaps of advice, and just make as much of an educated decision as u can
all the best! Jason
U may hav to pay a discharge fee if u are going to pay out a previous loan, u may need to pay a fee for the new loan you are going to get and then all the extras such as legals, valuations ect etc,
I think you may also have to pay stap duty on the new valuation, but if i remember right you also get a refund on the previous stamp duty u originally paid (or the difference)… not sure on this one to be honest! and if u intend to borrow more then 80% of the new value then u need to also pay for the insurance on the loan
Hope this helps!
Jason
Everyone has given great advice!
I would hav never thought of using google to look up specific streets, and will do so from now on..
Well all i can say is that in future if im looking at buying out of town i will ask just as before about the area on here.. Bob, ur info was great.. spoken like a true local
Avagoodday!
Jason
Hey FatBoy…
Im thinking the next rise will be .25% just before xmas. then depending on how jobs and the aussie dollar go, anything can happen….
I looked up some loan papers from the comm bank, from a loan i had about 3 or 4 yrs ago, and the varialbe rate was 8.02%… a far cry from what the rate is now…
but by 2004 xmass? perhaps just under 8%… and i VERY much doubt that rates will fall. I just refinanced my largest loan with Members Equity at 6.49% fixed for 3 years… a pretty good deal wen u consider Comm’ banks variable rate is 6.57%!
My humble opinion
Jason
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