Hi everyone
I have an IP in brisbane and have found out the person who owns the one next door and he’s a Realestate agent. I initiallised this by asking if he willing to sell. He’s keen to sell but I don’t know what figure to ask for it and how to go about this. He says he has to talk to one other person who may b interested in this house too and get back to me in a week
The house is a lot older then mine and needs a lot of work. I bought mine a year ago for 370k (divorcee so cheap) but now worth about 450k. I’m doing this so maybe in future a developer comes along to buy at good price as its apartment allowed to 6 levels.
Any ideas how to best attack this situation. ThanksHi Hinh1000
This one could be a tough purchase…
If the agent is any good at his job, he will already know what the fair market value of the property is, and how easily achievable that price is in the current market.
The other thing that will potentially work against you, is that the agent can log onto RP Data and within about 30 seconds discover that you own the property next door… once again, if he is any good at his job and understands the local zoning laws, he will realise why your purchasing the property and will all of a sudden want a price that reflects the development potential. (Eg. Above market value).
I guess you have a couple options;
1) Instead of buying his place, find a developer is willing to buy both your property and his property and sell both above market value (based on development potential).
2) Understand that if you really do want this place, you may have to pay slightly more than what it's worth based on you'll make your money back in future. If you do take this option, ensure that you can obtain finance before exchanging as the bank will only value it on 'stand alone market value'.
3) Do a joint venture with the Agent to develop the units and split costs / profits.
4) Stay firm on you price, and be prepared to walk away if the agent won't accept a fair price. Understand, very few other buyers (unless emotionally attached to the place) will offer above market value anyway.
In regards to what price to offer / what is fair market value… it's time to do your research.Spend a couple hours on RealEstate.com.au / Domain.com.au and have a look at what comparable properties have been sold for / are selling for…
Matt
It's important to know that you are the person most likely to want the property most, as it is most valuable to you as a consolidation opportunity. So unless the other person he's talking to is the neighbour on the other side, wait.
Get an independent sworn valuation to give you a better idea.
At a cost of $300 to $400, it is worth spending the money on.
Alternatively buy one of the reports from the likes of Residex or RP Data.
Good luck
GregPeoples thankyou for all ur help. I have come up with a conclusion and I want to live my life I realise lofe is too short and if I keep investing I won’t live my life to thhe fullest as I want boat 4 wheel drive caravan. So I’m stopping my investing life and enjoy evem though I only have one investment ewhich I feel good enough. Once again thhankyou for all ur help. But one word of 5vice from me life is way too short if u waana enjot do it now cause when I’m old I don’t wana do wat I do nopw no matter hhow rich I get money aint everything enjoy y u can
It is a valid comment, it is about a life balance, to enjoy life now as well as being able to enjoy life in full after you retire.
As part of my work, I help older folk with finance and I am continually saddened to hear of their own circumstances. They took the advice of their parents and grandparents, buy a home, pay it off and never get into debt. They end up on a pension, superannuation was not available for many of these older folk and they live in a house paid off but nothing else.
They believe that this is their lot and they don't need anything else.It's a tough life, especially for single folk.
If you have an alternative, to use your equity to increase your asset base that grows over time without compromising your current lifestyle, would that not make sense to do?
Good luck with the travel around our great country.
Greg
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