Just off the phone to my realtor in Buffalo. A word of warning though to all would be investors, a lot of Australians are buying property up there on cash deals with no lenders, etc and are paying way to much for the properties, yes folks the two tier system is alive and kicking up there so make sure that you get independent valuations and comparable sales even if you are buying cash as it is a relatively easy way of ensuring you aint paying to much. Alternatively dont buy cash and go through the lending system that will help reduce risk. My realtor showed me an email of a property deal that was being sold to Australians that was twice the price that a local would pay and couldn’t believe that no sales comps were taken into account before houses were being bought he thought that some of them were in for a shock if they tried to sell. The same house was listed in the US system for half the price it was been offered to Australians. Overpricing is very significant factor on low dollar value houses eg
say a property market price is 40,000 and it is sold for 50,000 that is actually 25% overvalued but this price will still look like a bargain to an out of towner
Piggy, good advice you have to act like a local when buying property up there and the prices are very low compared with oz, NZ, UK and even other parts of US. I have sold houses to other UK and Oz investors and always send them a list of comparable sales with my sales package and my price is always lower than the average comparable.
I also have a good contact who gives me the price that the property should be listed on the MLS. The only reason not to list is that you pay 6% commission to the realtor so best to sell privately if you can. My buyers apart from one who bought cash also get subject to finance in the contract and the lender will commission an independent valuation. The valuation is very important when you are a foreign national although they say they don’t discriminate they do.
I also intend to sell houses to local residents and they will be marketed on the MLS.
I heard this was happening in rural Australia during the boom. Houses were let to mates at inflated rates then sold to Investors on yield….
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The email deal I seen is also selling on yield, I dont think the rents are overstated but whether the purchase price is inflated for Australians is the question
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