Forum Replies Created
<<<<I think you can over-think interest rates. A very knowledgeable and high profile economist once told me to forget forecasting exchange rates and interest rates – no one knows. >>>>
Good points – its just that interest is my largest expense and forecasting interest rates helps in deciding whether to invest further now or later.
I hope you did not interpret my advice as abusive.
I have only sold two properties before. My PPOR and one investment property.
And I too found it very frustrating and stressful. Hang it there and refer to this thread later.
Wilandel
That probably was not wise. I believe that as part of the MAP you will achieve what Steve McKnight has set out to do – ie. make you a millionaire.
Dont devalue your credibility by having a slanging match with Jenman.
Where does that leave you in the eyes of independent people like me. I think Jenman has some substance and I also believe McKnight can make people into millionaies given enough time.
Dont give ammunition to Jenman. You want to keep a clean slate for when you become a reference for McKnights books and programs.
You said –
If we are paying the agent $5000 – $10000 to sell our house, then we expect them to be the ones doing the research and telling us what’s happening.
I disagree. You need to do your research. Its you who decides on what price to set. You need to work with the agent. I too work full time but on weekends I spoke to the agent and had regular chats – I called them. My brother about 6 months ago could not sell his place. I sold mine about 4 weeks ago. The difference being I consulted and worked with my agent, while my brother did nothing.
I too am not an agent. I am not saying reduce the price. All I am saying – you need to support the price in todays market – how does your property compare to other properties for sale.
Have a meeting with the agent and show him whats on the market now in your area and compare them to your property. How do they match up price and feature wise. Get evidence behind you so they cannot ignore you. You need to support your price in the market today not when a valuer did a valuation x weeks ago.
Thats all I am really saying. Nobody can argue with the evidence. Its also easier for the agent to sell your property if the others look like a worse deal.
Agree. We dont need septics ripping off aussies – we have our own aussies doing it and the money stays in the country.
In my view – houses sell themselves. Agents really do nothing.
If a person wants to buy a PPOR or an investment property they look at all the agents in the area and see what they have to offer.
They then look at the properties in more detail and see what they get for their money.
If your property is not overpriced then you should have at least had some interest. Is your property advertised in the agents window in a range or with a set price?
If you were a prespective buyer in your area – would you consider your property to be good value?
Agents are like property managers – you need to manage them!!! They work for you.
They are not God like and cannot pluck a price more than the market is prepared to pay.
Have a meeting with the agent and show him whats on the market now in your area and compare them to your property. How do they match up price and feature wise. Get evidence behind you so they cannot ignore you. You need to support your price in the market today not when a valuer did a valuation x weeks ago.
A valuer too can be wrong eventhough you paid him.
I hope I am some help – I sold an investment property some 4 weeks ago and know exactly how you feel.
Are you sure you have set a realistic market/selling price?
Dont forget you wont achieve the same prices as 6 months ago!!!
Stuart Said –
“We did a study – no fixed rate borrower has been better off in the last 10 years (compared 3 and 5 year rates to variable over the last 10 years). The longer the terms the more the fixed rate borrower ended up paying. “
I can understand that but in that time interest rates have tended downwards. My first loan 8 yrs ago was around 8%. I expect the trend over the next 5-10 yrs will be upwards. So it may be worth it.
Your thoughts?
You can always expract extra equity out by borrowing more money by having an extra loan. Thats what I have always done with CBA.
My only hard story in my 8 years of property investing was my brothers former girlfriend skipping out and not paying any rent for about 4 weeks.
And just tenants being a little late in paying rent. But my property manager has always collected outstanding rent. These properties are in Frankston.
My properties in Mentone – never had a problem.
So does area matter – I reckon it does!!!!!!!
Guilty – healthy addiction – I dont know!!!!!!
Its one of my favourite topics/issues so I enjoy parting with what I have learnt.
And I have learnt alot too.
Having just sold a property – if the agent does not give your offer to the vendor – bad luck.
If you really want the property offer a price acceptable to agent. The agent is acting for the vendor not purchaser.
I remember about 6 yrs ago, when selling my PPOR at auction the agent came to me with an offer of $40k below our price. I was fuming and almost about to loose my temper. But he was conditioning me for a lower price.
So I am surprised the agent did not tell the vendor, i reckon he probably did but told you he would not as he wanted a higher price from you.
Me – i would not worry too much, make sure the agent has your number and he will contact you if there are no better offers and the vendors are serious about selling.
I recently sold an investment property. On the subject of selling I have read all the stuff on http://www.jenman.com.au
I have never used a Jenman agent and dont intend to in the future, but some of the issues he raises has made me more aware of what to ask agents.
It may even be worth reading his Book – Dont sign anything.
The key to selling a property is dont sign for longer than 6 weeks and make sure you set a realistic market price. Dont go below that. But make sure its realistic.
The only reason properties dont sell is because of the price. In my opinion agents do very little to earn their money.
The question for me is – What capital growth do you expect from the property?
If you expect some capital growth then you can forgo some of the cash flow – well thats how I look at things. A good long term tenant is better than a few hundred a year in rent.
If your after the cash flow, then I would keep the tenant, use a property manager and start to increase the rent over the next 1-2 years to just below market value.
If you cant handle dealing with tenants (and I am in this category for the reasons you specify) then use the property manager to do your dirty work.
In my case I want growth properties, so it would not be an issue for me – a good long term tenant is worth its weight in gold, even if you loose $600 a year. Whats $600 a year on a property worth $150k or more.
My grey area for me is that at 7.69% for 15 yrs – sounds too good for me when you consider we are at levels close to 30 year lows. So surely its got to be good.
As for 15 yrs being too far out – you can still transfer the loan to a different property. ie. the security.
What do you mortgage brokers think?
I prefer a security system to grilles. As I write this the main story on the radio news was a house fire and fortunately no one was injured.
But I too hate grilles for this reason.
My understanding of vacant possession is where you are buying a property and there is currently a tenant in there.
As there is no lease on settlement you can take the property, if you wish, with vacant possession.
ie. the tenant has no lease and can be out of the place by settlement.Real estate agents like selling a place with vacant possession as it also attracts those who want the property as a ppor.
Maybe one day. But wrapping is not for me at this stage of my life.
I saw him in Shallow Hal too. Can he make you look at fat chicks as if they are skinny chicks?
Yeah I read it. I always look at this web site.
I doubt Robert G. Allen really cares. He is only here to take the seminar money and run. And Jenman just wants a bit more advertising and grand standing.
