We are looking to buy our next IP in the next few months and have checked out a few properties. One we looked at is going to auction on Friday but we had decided it isn’t cashflow positive enough – at the figure the agent indicated it should go for at auction. That was a couple of weeks ago.
Fast fwd to:Fri last week – the agent called to ask if I was interested, would be attending the auction etc I let him know my husband has had to fly out to NZ and as this property is 8hrs away I wouldn’t be able to be at the auction. He mentioned bidding via phone.
Then yesterday he called again and mentioned the elderly couple wanted to sell and are eager for offers now, the auction doesn’t necessarily have to go ahead etc. He also wondered whether we’d be more interested in making an offer it the property was on the market at a set price, he seemed to be entertaining the thought the property may pass in at auction.
Now today he called me again and said he met with the vendors today and they are anxious to sell and that he is sure they will accept a price that would be a bargain for this property. No indication of actual amount they would accept though.
I am seriously contemplating making an offer a fair bit under the price the agent and I discussed a few weeks ago. Of course subject to finance etc. After all it is a huge piece of land with the house built on the front, the interior of the house itself looks straight out of Pleasantville (1950s!) so it would also improve with renos. And at offer I am considering it would be 7.5% +ve in its present form.
Any thoughts?
Ruth
Go for it.
What have you got to lose?
You may be pleasantly surprised by the offer being accepted… i just bought an IP and was very pleasantly surprised at the offer that was accepted. Cant complain about instant equity.That’s my thoughts really, if the offer is accepted fantastic, if it isn’t oh well no loss.
I was looking to wait until my husband’s 6mths of probation is up, but it is up in mid Jan so it isn’t too long to wait. I also would hope the banks would consider that we have worked in the same industry for 15 yrs and we had 2 weeks between finishing work in NSW and starting in SA and during that time we packed up a family and moved states so it isn’t as if our employment isn’t secure. In the past 15yrs my husband has never been out of work and neither have I even though we have moved state 3 times and country once. Even if this didn’t satisfy the banks I guess the subject to finance clause would protect us anyway
cheers
Ruth
Being in the same industry for a lenghty period improves your chances of getting finance approved. In any case, if the deal is subject to finance you don't have much to lose.
Sounds like it could be a good deal – put in a low-ball offer and see how it goes.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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