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Well those things are uncertain for me right now I have to get my solicitor to overlook the finer details but I want to put it through a company but may have to purchase personally for the time being it will use about 2/3 of my money right now but I’m confident I can build it back up by mid next year and I’ll still be left with enough to put a deposit on something else
As for values increasing its a pretty central location to the cbd it’s half an hour and less then 20 minutes to another central hub I know commercial can have little to no capital growth but as a rule of thumb your 3% rent increase each year should also be factored into price.
I just might have to find a buyers agent I’ll look around the forum and make a post I’m from Sydney , running my own business is time consuming and I don’t have as much time as I would like to view properties
To be honest I wouldn’t bother with a project like that for a first buy, it probably is already overpriced I mean depending on what type of units you plan to build single storey or 2-3 storey it can cost a lot of money and if you end up borrowing most of the money from a lender you will be under a lot of pressure to sell when it’s completed just to make up your loan repayments because it will be interest only for a developers loan. Also you can waste a lot of time and money in building if you don’t know what you’re doing and are inexperienced. Start off small and build your momentum. Never be afraid to ask for advice because there’s plenty of helpful people here.
I was a lot like you when I was younger jumping ahead and had big ideas for my first purchase but I figured I’d do something I could be comfortable with I put a 50% deposit on a $300,000 house 3 years ago to create a positively geared property because I didn’t want the burden of paying for the property out of my own pocket now here I am looking at my third purchase . If I went with some of the more extravagant ideas I would still be sitting on the land losing money to interest repayments.Now if the house you’re looking at is in itself a good money maker and its naturally positively geared at 80/20 LVR then I would then consider buying it because you don’t want to complicate your first property just get it done and out of the way because it’s your biggest learning curve. Second learning curve comes later when you have to figure out how to keep buying properties without changing your lifestyle excessively. Just keep it simple
Thanks for the input and i have decided to hold out of that area for atleast a year, I will probably pick up one or two long lease commercial properties in that time closer to home even if they are close to neutral gearing. Might offer the tenants a vendor finance deal after a couple of months.
I simply don’t earn enough but I appreciate your feedback I understand and agree which is why you definitely need to have it structured well with a solicitor have everything on title and contract but if you had a handful of people staked in with a common agenda like a real estate trust fund but private, small scale and more personal but in that situation a company would be better because you would deal with shares in the company but financing would be very different
Should I just tell him I don’t believe there’s another buyer and that I’ll take it at 109k? Just don’t want to give in too easy. You have to wine and dine me before you f&$@ me
I’m about to
Message him back with“I had another talk with my advisor this afternoon, we’ve agreed to go $108,000 but I’ll have you know I’ll need to find the extra funds somewhere I can’t afford that right now so I may need a delayed settlement , how does that sit?”
It’s rather an undesirable area to most investors it’s a majority housing commission area but I met the tenants when I went to inspect and the fact they have a flourishing vegetable garden means to me they are responsible and care for the house I’ve never seen a bad tenant with a well maintained garden or vegetable patch and it’s a sign they are willing to stay long term for 109k it’s renting for $215 a week which is about 10% gross return and 6ish net after rates and management, I have 120k sitting in my bank right now
I’m considering withdrawing enough to make it look like I only have 104,540 or some rather odd amount just short of my bid to give the picture I’m prepared for a fast settlement I gave the impression I’m looking elsewhere but I honestly don’t believe there’s another buyer but seriously 2k probably isn’t worth the headaches 😂😂 but I’ll see how I go it’s going to be a Mexican standoff to see who gives in first . If they reject my 109k and the “other buyer” bids above me then I’m out of the game.I don’t mind owning ex housing commission stock because from what I understand and have researched the land tax is nonexistent for these lands because the values seem to be capped at 15k by government land valuation so you would need to hold atleast $4mil in today’s prices of property to reach the threshold .
In my last message to the agent I said 107,100 was my final bid and that I was expecting a counter offer and that my financial advisor insists i Retract my offer and any further negotiation to go through him starting at 100k. Just to play him around back I will make him frustrated and insist to the seller I won’t be milked anymore I think I made the mistake of driving my flash new gt 86 to a shitty country town housing commission the agent was driving a beat up Pajero so he probably thinks I’m loadedCould you elaborate on non coded ? What exactly do you mean by that and would a conventional bank offer it I’m pretty chummy with my loan manager it’s an old friend of the family so I’d imagine they would tell me more options if they were available to me
Ah I’m in the dilemma of negotiating right now I put my offer of $105,000 on Sunday around 2pm ,this morning I get a call of a counter offer of undisclosed value it’s listed for 109,000 but I call bullshit and they are trying to milk me I got back a few hours later increasing the offer to 107,000 and I’ll give 2 days for the agent to call I mean it’s only another $2,000 to listing price which I’m sure is what they are trying to get my core logic data tells me it’s a high confidence estimate at 108,500 it went up $1000 in the space of 1 week of watching the property on core logic.
I’m going to buy this then hit the bank in a month for a loan I’ve found some promising properties in broken hill under 80k with 10% returns as well and cheaper land rates and costs but I’ll need to look into it a bit more , market research is key. Will let you guys know what happens by the end of the week.
Also just pointing out I rather purchase in Kempsey for now , a quick look and you will find that the land values given by government are so low you literally have to own 30 blocks of land before you reach the land tax threshold (almost $4million worth of property on the current market)that’s a no brainer for me .
Also I’m tending more towards option 1 because there’s a possibility I could squeeze in a second property in Kempsey before the financial year ends with a loan from the bank using the first as collateral.
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This reply was modified 8 years, 2 months ago by
Dolamoot. Reason: Extra content
What about a fresh modern driveway? I’m a concretor by trade so I could get away with just my own time and the costs of materials it could cost $4,000 for a 50m2 driveway which is an average size , if they are stuck with an old strip driveway or none do you think it will do more for rent or house value
Oh lord I’m looking at the dates on these, if only it was still the case nothing under 400 in at marys or anywhere around there unless it’s close to housing commission. Right now kempsey looks promising I’m buying something there this week.
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This reply was modified 8 years, 2 months ago by
