[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

June 30, 2005 - 3:54 am

This one is interesting…

As a vendor, I wouldnt accept a $1.00 deposit on a contract, and if I had more than one contract to decide on (several offers on the property) I would disregard the one with a $1.00 deposit and consider a purchaser who is being serious. If you cant come up with $1000, or even $500 as a deposit then dont bother. Keep saving. Go down the shop and buy a bag of lollies

I would prefer someone offered no deposit (or their left shoe) than 1 buck, its cheeky and could be considered as offensive.

Are you investing professionally or are you just trying to embarrass yourself? [gossip]

Dev [kid]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

June 30, 2005 - 3:24 am

Thanks Dallas

Not too worried about SARS I guess [laugh2] but thanks for the comments.

Unfortunately you cant claim a property inspection trip unless you own property in that area anyway (and are using the trip to inspect that property), which is why I am doing some research now so I know where to go and look [kid]

Hows the weather up there anyway? [helmet]

Dev

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

May 9, 2005 - 11:42 am

Thanks Simon

Never thought of the Auctions!

I forgot to mention: The house will be demolished in 2 years so I guess just a basic, functional kitchen will do. It doesnt have to look like the Ikea catalogue [hat]

Cheers

Dev [kid]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

May 4, 2005 - 2:49 am

Dan

I am 24 (ok, ok – 25 next month)… Ill give you a quick run down to keep you motivated. I dont think there are enough of us under 30’s out there investing so I like to ‘try’ and help others around my age…[blush2]

I left school at the end of year 10, after working part time since 14. Got a full time job in 1997 and bought my first car. Changed jobs, got a promotion, bought my next car. Car crashed so I bought another car while that was getting repaired. Started my own business in 1999 then bought a different car. Bought project car and spent 45k on it all up over 3 years (ouch) Business grew so I bought 2 more cars and employed staff. Bought my first house in 2001 and renovated it from top to bottom. Traded two of the work cars and bought a Monaro. Sold business in 2003 and moved to Sydney to get full time job. Bought 2nd property in April 2004 (still got the Monaro), relocated with work to Melbourne after living in Sydney for 13 months and bought 3rd property in November 2004. Finally settled down here in Melbourne and have just purchased my 4th property about 300m from the beach on a dual occupancy site with an old house on it.

There you go. My advice: Dont buy cars, dont try and do everything now, take your time and things will happen. Have a plan written down and how you are going to acheive it. Get a GOOD MORTGAGE BROKER (I can suggest a good one who is on this forum)

I have spent a fortune on getting into and out of the wrong loans, if only I knew a good contact back then, but you learn from these mistakes! I have lost probably 100k on the 10 or so cars I have bought, but I have enjoyed it.

Feel free to message me if you have any questions or what to know anything else [cap] I will be happy to help!

Go for it, have fun while you build your future, and live with NOREGRETS!

Dev [biggrin]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

April 19, 2005 - 5:28 am

I dont think there is any way to avoid it. The builder is running a business, after all and will require progress payments based on the work completed. I am not sure of how many progress payments are ‘standard’ but I am sure that these would be common IMHO:

-Initial deposit to commence work
-Progress payment when walls go up
-Progress payment when roof goes on
-Progress payment at lockup stage
-Final payment on completion of works

Anyone like to help here?

Dev [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

April 15, 2005 - 2:09 am

Would it be uncommon to make an offer on a property based on the DA being approved with council within xx days?

Dev [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

April 14, 2005 - 1:30 pm

patriciaburt

I agree with your thinking, there may be good returns but as a 24 year old property investor with 3 properties I wouldnt want to be renting (a house, a room or a bed for that matter) to some of the people I grew up with or know now who are in my age group! Selection of tenants is very important anyway, but student accommodation could be risky! (they may not sign leases and stick to them, high turnover = higher management)

In saying that I know some people who have 4 or 5 bedroom houses they rent to Japanese students, who are very reliable tenants. They rent the rooms out instead of the whole house.

Im currently renting myself (helps buy more properties) and live in a 5 bedroom house in South Yarra, I am renting 4 rooms out and am paying only $30 a week to live in this awesome suburb! Depends how you work the figures out and what risk level youre comfortable with but it could be a good move, its easy for me to manage this cause I live IN the house so I see my tenants every day

Dev [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

April 14, 2005 - 4:54 am

Michael

Thanks for your reply, I was hoping to get to your seminar last weekend but was interstate for work!

The property is in Victoria, and from the prices I have been quoted today 8k is about spot on.

I have the plans that are going through council at the moment, but will need to get the owner to pay for the copyright so I can use them if I purchase the property. I dont want to rush into it, but I would like to make sure I know everything I need to, and every deal is different! [blush2]

Thanks for your comments…

Dev [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

March 21, 2005 - 11:47 am

Sounds like fun, but even if it does affect the valuation this time around, next time you need to refinance you may not be able to borrow as much because of the higher valuation.

If it is a new property you are buying, the banks will only lend on contract value anyway so there is not much point doing this. [blush2]

As I said though, it could be fun but may not be of much benefit to you. I certainly wouldnt be paying ANY money for it, they have just made your task a little easier but really most people with a computer can be creative these days and make a ‘resume’ look good. [biggrin]

If you do buy it and try this let us know how you go with it, interesting concept.

Dev [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

March 13, 2005 - 12:38 pm

woodsman

Thanks for your response, does that mean that you would have to wait 12 months before applying for finance, or would you get an approval, say, 2 months before settlement is due so you can settle at the end of the 12 months as per the contract?

[cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

March 13, 2005 - 10:32 am

Terry

Thanks for the reply. I was thinking that I would apply for finance approx 4 months into the lease period (2 months prior to expected settlement date)

If banks will lend on value if it is higher than the contract, is there a period of time they prefer (you suggested 12 months) – is this a bank requirement or can it be any length of time providing the value HAS risen above the contract price. – Basically, if the renovation ‘magically’ added 20% to the contract price, would I be able to borrow 80% (or the whole contract price)? -based on serviceability being okay of course…

The property can be purchased for $215k and was rented at $190 per week. Estimated value is around $230- 240k now, and in 12 months who knows…

I think a 12 month lease & settlement would be an option with this vendor. If not, doing it over 6 months, and worst case scenario if I couldnt get a ‘normal’ loan it may be worth getting into a ‘non standard’ loan because of the $$$ that can be made from subdividing the block and getting the permits.

Is this strategy used often or am I thinking a bit too far outside the square?

[gossip]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

February 9, 2005 - 7:57 am

Family, = no chance
Friends, = not an option
Mortgage broker? – you know someone Terry? [biggrin]

[cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

February 8, 2005 - 12:13 pm

maybe you need to repeat the scenario using ‘widgets’

hehe [biggrin]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

February 8, 2005 - 11:57 am

Terry

Are you suggesting that I should sell the Monaro???

Luke [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

February 8, 2005 - 11:49 am

makes sense… as long as you can SERVICE the loan/s… [cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

December 23, 2004 - 5:22 am

Id like to have many baskets with one egg in each one. If one property is not performing, the others may be…[biggrin]

[cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

December 23, 2004 - 5:15 am

Im a Tassie fan, in particular the west coast. [biggrin]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

December 23, 2004 - 4:23 am

Sack your property manager, but only if what you are asking for your rent is at market value. Dont forget it is Christmas so not many people will want to move now!

Look around the area and see what others are asking for similar properties… (Im sure you have already) Id prefer to drop $10 $15 a week than have it vacant for another 8 weeks!!!

[cap]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

December 23, 2004 - 4:17 am

While I am happy with it, I am trying to grab some feedback on the info I have given without naming the area which may affect peoples thinking due to pre concieved opinions… or ‘roumors’

Thanks

Luke [blush2]

[BonbeachParticipant@bonbeachJoin Date: 2004Post Count: 214]

December 23, 2004 - 4:10 am

haha good comment

yeah i got a great spot between 2 dead guys… great views, but probably not much ‘growth’ potential haha

No, its not a cemetary… fortunately. [cap]