Chris

Good to hear you are thinking ratonaly abot the FHO top up. I feel many are just going out and buying on the extra few bucks the Gove has given. When the Gov. lower intrest rates & give out money its for a reasion???

If i get in with the 'extra 7K' will this just be lost due to capital losses? and if the high FHOG drops back down to 7K will my lower priced property then receive much less attention from first home buyers and drop even more (7K)?

An extra 7 k will get you your curtains & a microway oven and a bit left over. So its not a big deal.  Re. you question nobody has the answer. IMO I dont think house prices will race away just because of the FHO top up. A:  Its only for FH buyers.    B: Banks are not lending so much money. C: Job loss is now a concern.  House prices are to expensive. E. Who wants a 25 year sentance just to own your own home, you till have to maintain it, rates etc.

Mate save your money, dont get sucked in to thinking you will make a profit on your home. Negative equity is common.

All the best with your desishion Chris.

T……….

crashy

Ive got an agent with a house im intrested in. I got on it fast as soon as it went on the market. Its now 4 .5 weeks and no sect. 32 at the office. They have asked me for my offer (make an offer) I told her it would be voild because no sect. 32 is available. After 4 weeks its still the same I go in and "Sorry they have not got it yet from the solicitor" and again its give us your offer & I will ask them.  As you mentioned above  "firstly, ignore anything the agent says. its usually the same old B.S"  I feel as soon as I give my offer with out the sect 32 (its not binding with out the sect 32) they then know what Im willing to pay and may not take it to the vendor as its not in writting and not contractual only verbal.  In spite of asking serveral times over the 4.5 weeks no sect 32. I feel they may be playing me out when the sect 32 arrives (if its not there already ) with another mistery buyer with a higher offer.
Is this somethink you have heard of agent doing?  Any surgestions as to my offer? How long can it take for a sect. 32 ? I know its a very simple situation nothing out of the ordinary sale.
What do you think.

Thanks
Kind regards
T……………….

twas
Great to hear you are doing the Cert4 you can indeed make a good living in this trade and I see alot of young guys doing very well. I think it would be a good idea to get the on the job expiriance first. If you would like to be a part of the build yourself and have a few good mates why not build to lock up. Leave the hard stuff & the stress to the guys who have the know how. Mate you will always find ways to save money once the place is finished. You still have to do the decking, pegola, shed, drive way & landscaping and fencing. Why not have a go at these by yourself you will save a few grand.

Builderbob has correctly expanded on the reality of such a task I have not met an owner builder that have not had difficulty.
Its a faulce economy to owner build IMO. I also think that paying the extra is worth it; If the build goes beond the final date you get paid X amount per week.  If its not done right you tell the company to tell the builder to fix it, simple. The company has a reputation to uphold. Once you have paid Joe and he has left the site he may not want to know about your problems as they are now your problem not his. The process is made easy you use the volume builders existing conections with suplyers. They have color centre etc. to help you choose the right things to make it look right.
Why not use your current skills to be your own inspector at each stage go over the place. 

I would have no problem going with a volume builder of a good reputation and paying 10 20 30 K more just for the piece of mind. Its also a big investment  so you dont want to blow your money 10 years down the track to save 10k now.

All the best with the Cert 4.
 
Cheers
T…………………

Crashy
I was always told "cash is king" Ive been in fixed intrest for a long time now yes its safe but you risk the oppertunity cost of your money.  When will the dust settle? What will be the result when it does? 10, 20  30 % reduction in assett value?  I check land prices every day I dont see them going backwards Why?  Bank intrest will fall soon so retunes on T.D. will fall also try getting 8.5 % now.  people who are 100% cash will be the only survivors. Yes comes back to "cash being King" but what about inflation at 5% eg. I get 7.00 % in bank I pay 33% tax inflation at 5.00 % whats left for me.  The economy will have to go ass up real bad before people have no money and property is being given away at 2001 prices. Only my opinion.     Devo 76 I also consided getting back to nature, buying an old place in the bush but your are right it may be best to look for oppertunitys in the current market. How much is my cash worth, banks seem to lend less now so all the greedy vendors may have to wait or take a bit less.
Cheers……………..T

Paul
I can see you have put a lot of thourght into the conditions of your purchase. This is wise and well done. However, most agents will look at this and since they work for the vendor they most likly will question them.  Terry W  make a good point seek legal advise not from a conveyencer from a solicitor before you sign.  Im not a solicitor but for what its worth,  No1 Is too much detail. What is fair & resonable?? Subject to a  Building and pest report satisfactory to the purchaser.  Simple as that. Paul if you have reservations about the place pay a reputable inspector to check the place out & be there when it is inspected and get the written report. I just went throught this with a friend and it paid for it self as it revealed a lot of things that needed work. Dont forget a conveyencer is not a solicitor so get a legal practitioner that does conveyancing  to check your contract out before you sign. In Vic when you do this you loose your 3 day cooling off period but it may be worth it.

Good Luck.

T…………….

Dubin-101

I understand totally. With the rate drop of 1% which I could not beleive and now the FHO grant at 21,000 today, can we afford to wait ??????   Wait,  What for ? a further intrest rate cut down to 5%.  I also have missed out on the last 2 properties I offered on. IMPO the Gov. wants to stop the ass falling out of the houseing market, like in the USA and I think Keven Rudds serious about it.
Man its like dangling a carrott, first home buyers will be tempted by the grant & the fear of missing out. The market will be stimulated by this for sure, maybe not much but it may be the diffrence between your offer and the other person that is willing to go a few grand more.  Great if you are the vendor.  Lets hope for the best.

Cheers
T…………….

Mister
Great Ocian Rd. nice spot I felt it was only for the rich and then over priced. But Im sure there are some pockets along it that are still good buying. I will continue the search and know if you work hard & do your home work it must pay off.
I will let you know when I hit gold.
Cheers
T…………………

Having spent many a weekend an Mortgagee Sales Im yet to find one thats a real bargan. They tend to attract all bargan hunters and some times are sold above current market value. The lenders main aim is to recoupe what is owed. However, as mentioned they have a legal obligation to get the max and what is fair market value. If a person owes 100k and cant pay dont think you may buy it for 100k the person can sue the lender for selling there house under market value. A lot of these houses Ive seen are in bad shape due to the owners lack of upkeep some have been trashed. Its a bit sad to see people over comitted, mislead then tipped out. Some of the no doc lenders will have you out in 4 weeks and on the market as fast.

The agent will in most case be told the reserve on the day, if not when the biding stalls. They may neg. a bit if you are the only bidder but not much. Some have been auctioned 2 or 3 times the last time being the best to buy at.

Most Always sold by auction the auction rules apply, no cooling off etc. What you see is what you get. As mentioned if its passed in it will go in the window of the agent at a fixed price. They dont give them away (not yet anyway).

If you intend to buy at a mortgagee sale think about the following:

Get the sect 32 asap then get it to your solicitor.

Have a good look at the place most times the power, gas, water will be off so you cant check if things work. 

Have a cover note ready for insurance from the date you bid. Remember you are buying some poor bastards place that just got kicked out.

Have a set price and stick to it (as some ive seen sell for more than or near to build price).

You may pick up a bargan and you may not, I got sick of going to these sales as I felt they were not a bargan.
Hope Ive helped a bit.
Good luck.
T……………..

Hi Oppertunity

I think your main concern is the near 1 million debt. I also think you are basing your desision on saving on the holding costs too much. You want to build in order to reduce your holding costs. ie Borrow another 5ook in order to save 13,000 pa on holding costs. My question is before you brought this place did you realise the true holding costs (18000) ? Also consider the impact on your current life style paying off an extra 500K.  How old will you be before you have any equity in the place?  If and I say If propery prices fall what will be the situation. I feel your holding cost are very expencive and you now realise this going in bebt to 1 mill. in the current economic climate may be somthing you may regreat. Just some food for thourght. All the best with your desishion.

Cheers

T………… 

Macnatt
I dont think you need to worry about selling your house for 250k just yet. However, welcome to the realality of your current investments. Top end market property is not the place to start, to much to loose if things go wrong.

" My feeling is maybe we should cut our losses and offload this property as it is beoming a financial drain and we are starting to feel as though we are funding the lifestyle of our tenants."

What, as opposed to the tenant funding your lifestyle. Mate, you wanted to be the land lord and now your begruging the tenant of there enjoyment of the property just because your not getting rich as fast as you thourght you would.

You know you are loosing money,   " I originally subscribed to the buy and hold strategy but surely there comes a time to cut losses."

If you could not afford to hold, why did you buy. What went wrong with your "original strategy".  In my opinion far too many people (investers) have been driven by the faulce beleif that they will make a shit load of money when they sell.  Now, quiet a few of them feel that potentual buyers should fund there poor investment desishions by paying what the property owes them and not what it is worth in the current market or what buyers are willing to pay.  Again, as you said it only take one person to pay what you want and its sold. Recenty Ive made a few low ball offers for property I thourght was over priced and it was sold for the listed price. So dont get to stress out just yet. However, you are loosing far to much money in a falling market and you are uncomfortable in this investment so why not sell for as much as you can get and move on.

All the best Nat.
T…………………