And another thing. I dont totally agree with the Jenman system either. But I have learnt heaps about real estate agents by reading his book ‘Dont sign Anything.’

The agent I an currently working with is NOT a Jenman agent. But I told him, I want it sold in 6-8 weeks, I am not going to auction and I only want a sign out front and you pay advertising as serious buyers would be knocking on your door to see properties and you should have their details.

<<<<<that giving an agent 6 weeks to sell a property is insuffucient time simply because of how the market it is at the moment. Also keep in mind once you sign that agency agreement some solicitors take 2 weeks and sometimes more to get a contract for sale to us and we cannot advertise a property until we have this contract and then by the time it gets in the paper there is another week so there is 3 weeks already gone >>>>

Yes – i understand that but, but if I am not happy after 6 weeks then I can walk. But if I sign for 10 weeks then I cannot walk if I am not happy.

Yes. Sound out the agent for what he wants. then go below that. Make him work for his commission.

Jancrows –

What state are you in?

<<<<<am i right in thinking that melbourne will host the 2006 commonwealth games? if so, will this impact on centrally located apartments? and are there any other significant events in the pipeline to stimulate the market. >>>>>

Yes. The 2006 Commonwealth games are here in Melbourne. I dont really think it will effect the property market. We already have the best sports infrastructure in world. Most events can be walked too from the city.

Major events are always being held in Melbourne. There is the Grand Slam Aussie Tennis Open, Melb Grand Prix, Melb Cup race (the only public holiday in teh world for a horse race), MCG cricket matches, Aussie rules footie games (always being held at docklands – Telstra Dome). Not to mention Jeffs shed (Melb Exhibition Centre) and all the conferences they try and get to Melb. These will certainly feul Docklands and Southbank but I agree you are talking 10 yrs.

But then we will probably say – geeeeez if only I purchased then. Its a tough one though.

I prefer docklands to southbank because.
1. Telstra Dome is already getting people to Docklands.
2. Some restaurants have opened.
3. Once a market is there it would get weekenders and melb surburbs day trippers there
4. There are supposed to be some office buildings going up.
5. It would be good if they got more boats there

Sounds like advertising to me.

Nothing really. I have taken the opportunity to spend this time with my wife, kids and family.

The present rate is around 2-3%. Anything above this would worry the Reserve Bank and they will probably increase interest rates.

<<<<How much on average would you spend updating the >>>>

This is a tough question and would depend on what the property is worth.

You would not spend $20km on some of those $80k dog boxes but you might spend that on a $200k property.

You need to decide how much the property will increase in value by doing the renovation. I recall my estate agent investor (he was an estate agent who also owned property) told me that he wants to get a 20% return on his renovations.

For example if he spends $10k on a renovation he wants to be able to increase the rent by $40 ie $2000 a year. Hence a 20% return.

This is just a guide but something that I try and live by.

<<<<<How many people even in here have never even thought about developing an exit plan should the unforseeable happen to their investment or thier abitity to fund it……mmm thought so >>>>

Tell me a bit more about what you mean by an Exit strategy? Do you just mean being in a position to sell when you need to as against holding all properties till you loose them.

I have been an investor since 1997, I have not seen any properties go down in value. So any info an an exit strategy and its importance would be good.