1. Always substantiate your claims: eg – Mention that you’ve seen or bought a property at the same price with a higher yield when the agent quotes what they think the property will sell for.

2. Attach a cheque for the deposit amount when making a written offer to a vendor. This works especially well when you know the vendor’s circumstances, or if you find out that they want a short settlement term.

3. Whoever quotes a price first will “generally” lose the negotiation – Why else would car sales people always say “So how much do you want to spend?” or “How much are you willing to pay for it?” rather than telling you how much it is.

4. Invent a fictitious business/decision partner. This is a perfect “out” when someone tries to back you into a corner negoiation wise. eg: Car sales person says “Well if I drop the price to $x, will you sign the contract today?” You say “Not too sure yet, I need to consult my girlfriend/wife/business partner etc etc.

5. Do not antagonise the agent/vendor or insult their asking price/offer price. I’ve heard of a few people that have lost potential deals due to comments like “$120k for that? You’ve got to be kidding me!? Hahaha”. Just be professional and polite, and then justify why you think the property is/isn’t worth that much.

6. Be willing to negotiate on terms OR price, but never on both (Direct from the readings of the prophet Steve McKnight [specs]) – What’s more important to you? Slightly longer settlement period or hanging out for a few thousand dollars extra? The best situation is where one party wants to negotiate on terms, and the other on price (happens more often than you might think!)

I worked in a job for 2 years where Negotiaton skills was on the job description. I’ll surely remember some of the technical stuff later on – and when i do… “I’ll be back!”

Hope this helps kick off the conversation!

Regards,
Steve (YI)

“Knowledge is Power”

lol Redwing [biggrin]

But seriously… who has knowledge that doesn’t have power?

The irony is that most people with knowledge don’t know how to use their power [blink]

Steve (YI)

“Knowledge is Power”

How about:

REAL Property Solutions

Words with dual meaning are popping up everywhere these days in advertising and product names.

The “REAL” part draws an association with Real Estate Agents, but also sounds as though the company is a “no-bull” property solution service. – Not complicated, just REAL solutions…

So like… with that $100… u want my account number? :[blush2]

Have fun and good luck!!

Steve (YI)

“Knowledge is Power”

True dat. SIS has been around for ages… wouldn’t mind a progress update from him!! [evo]

As for me, im 22 – Own 1 ip, now got enough deposit for number 2 and looking every day

As for how i started, save save save!! I saved about two thirds of my pay whilst in the last 2 years of uni working in a call centre, and managed around 40k.

My short term goal is to have another 2 IP’s by the end of the year, so that’s the focus for now.

My medium term goal is to have a net worth of $1M by age 28, but I think i’ll change to something more challenging soon. [strum]

I also have shares to the value of around 10k, but looking to get out as soon as I can avoid CGT – (something about gold, property and shares all rising at once sets off alarm bells for me [upsidedown])

I earn good money for a 22 y.o as a Business Banker with NAB, and thanks to my job, I have a lot of handy people at my disposal. eg:

– Solicitors
– Residential and Commercial Valuers (Buy a coffee every now and then = free valuation [specool])
– Tradespeople
– Developers
– Wealth management specialists
– Mortgage brokers
– Real Estate Agents etc etc etc etc

I didn’t have these guys when I purchased the first IP, but they’ll be a good source of advice from here on in

There’s obviously a lot more detail on how I started in property than what I have just mentioned, so please feel free to ask me any questions you like.

Thanks,
Steve.

ps: I’m in South East Melb if you’re wondering.

warrick,

Look out for phrases in property ads along the lines of “Under instructions from state trustees”, “Bank says sell” or “Mortgagee in posession”.

Good luck,
Steve.

“Knowledge is Power”

JL,

As Russ said, “every deal needs to be assessed for its individual merits”. This also applies your own individual situation.

Post a little more about your circumstances, and people will be able to advise you a little further about P&I vs IO.

Steve.

“Knowledge is Power”

[eh]

“Knowledge is Power”