Hi all
I’m very new to this forum, having only discovered it over the weekend while doing some research. I’ve found it very helpful and interesting so far. Wondering if anyone can point me in the right direction with two main queries I have. We are looking at buying another house to live in and turning our current home to an IP. Neither my husband or I are terrific negotiators (don’t tell him I said that
) and I’ve been trying to do as much research as possible before making an offer on a property we have found that we like, (actually love)My first query is in relation to negotiating an offer and coming up with a figure in the first place. What are the key sources of information I need to refer to? (I’ve reviewed sale prices of houses in the area on realestate.com.au and received a report of median values in the area but not sure where else to review). And in the offer stage, are there any templates/sites anyone could refer me to, in wording an offer over email (previously we just made offers verbally and didn’t specify any conditions etc.
My second query is who (ie what type of professional) is best equipped to give advice on how we structure our loans? We have the mortgage on our PPOR, soon to be IP, as well as an existing IO loan on an IP as well as the new loan for the new house (PPOR).
Thankyou in advance
Which city/area are you looking at?
Re placing an offer – many finance professionals have access to RP Data or APM reports. These reports give you a list of recent sales which can be used to determine an offer. This information is quite useful when negotiating a price.
Re loan structure – your broker or banker can assist with this. Make sure that either one sets up your finance in a way that meets your current and future requirements. Many are transactional and just set up the structure based on your current requirements only.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hello and welcome aboard.
With the first question – I'd also find out the motivation behind the sale .Why are they selling up? Are they committed elsewhere? Do they need a short/long settlement? Would they be interested in renting it back for a period of time?
For credit and loan structure advice, any decent mortgage broker/banker that understands investment property structures (there's a lot that don't) should be able to assist. If you're ok with email/phone then it doesn't have to be face to face – you can choose your finance person from anywhere in the country.
Cheers
Jamie
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]
Thankyou both
All three properties are on the central coast, NSW
I purchased a property report from APM- the information re previous sales was useful however the price guide for the house was not as relevant as the house has been recently renovated. But I will delve into the sale prices even more.
I'm trying to gain more of an understanding of the vendors situation,they did a big renovation on this house, haven't bought anything to move into/the next project yet, however it has been on the market for 6 months (2 price reductions). I haven't been able to ascertain how much of a hurry they're in or if they're waiting for the 'right price'.
The lending manager at ANZ has a loan structure in mind based on what we have asked , just wasn't sure if I should consult another professional.
Thanks.
Most brokers and bankers can get you the APM Reports for free so don't waste your money. You should only be looking at the past sales and the current properties on the market. The system valuation of the property is often out.
I don't rate ANZ too highly. They only go to 70% LVR on 2 titles which is a massive road block as many investors look to construct at least 2 properties on their blocks, their servicing is quite conservative and their policies are quite outdated.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Ok great, thanks for your feedback Shahin.
Frankly you should look and inspect all properties that are available in your area. It will not take long to work out the values
The other thing you could do is pay to get a sworn valuation that should at least give you a guide to your price
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi hazzamac
The mortgage guy at the bank may be good, or maybe he won't be. The same can be said of mortgage brokers. As Jamie mentioned, you want a broker that understands investment properties. My own opinion is that you might as well get people to help you that are already wealthy themselves via property, and/or have helped plenty of their clients to be wealthy via property.
You would be surprised how different the results can be if you are coaxed into the wrong kind of mortgage. Especially when there are intentions of eventually converting a PPOR to an IP.
Jamie is one of the very well respected brokers on the forum – I'd highly recommend giving him a buzz to discuss your ambitions.
With regards to negotiating, I have come to learn that having to negotiate is literally terrifying for some people and it's just something they do not want to do. A real estate agent will see that coming a mile off and there is an opportunity there to take advantage of the weakness. There is always the option of using a buyers agent to overcome such a dilemma. Alternatively as has been suggested, go through LOADS of properties. You'll soon be able to quote within 2 or 3 thousand dollars what the current property shoppers would be prepared to pay for it. As an example, you'll be able to say well in this street, a tidy house with a brown kitchen and no garage is worth $380k but if there is a newish white kitchen and somewhere to park the car, we're talking $450k. Different street, different story. Depends how close things are to the local shops and transport, and how pretty the street is.
Keep checking in with us and let us know how your thoughts are progressing so we can help you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You're too kind – thanks for the wrap
Awesome comments as well. I was hoping you'd pop up to give some feedback on the negotiating side of things.
Cheers
Jamie
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]
That is a great help, thankyou.
(Good to get a recommendation for broker also. Jamie, I may be in touch.)Naomi
No worries.
Cheers
Jamie
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]
) and I’ve been trying to do as much research as possible before making an offer on a property we have found that we like, (actually love)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
