WAFMember@wafJoin Date: 2003Post Count: 61
I have a question, what would your offer be if a property was advertised as above? Depends on a myriad of factors I know but this particular case relates to land only and the value is extremely hard to determine. It really can’t be compared to similar properties price per hectare wise due to uniqueness such as location, views etc. Just really wanted to know where to start even though it says over 200 would most of you have a go at 185-190 first? Appreciate any ideas.
ThanksyackMember@yackJoin Date: 2003Post Count: 1,206
Yes. Sound out the agent for what he wants. then go below that. Make him work for his commission.geoMember@geoJoin Date: 2003Post Count: 1,194
yeah i agree – sus the agent out and the speak to the council and investigate its true worth – then always submit a lower offer. what have you to lose. The worst that could happen is the agent comes back to you and says, “sorry, the vendor won’t budge – you’ll have to go higher.”
“If You never never ask, you’ll never never know”Tasman PropertyMember@tasman-propertyJoin Date: 2003Post Count: 126
WAF, what would you do with the land? Remember Shape-O…
If you have an exit strategy in mind (i.e. how you are going to make money with this deal) then you can choose your entry strategy to suit.
For instance. Say you buy the land and then subdivide and build townhouses on it and you believe you can sell all these for $800K no problem. (I’m just making up numbers as example)
If your project costs are $200K for the land and say $400K for the development, and you stand to make $200K profit (yes before tax, I know I know) then your entry strategy can be to pay $200K for the land. Simple. (If you can see a way to make $200K in a deal, you dont have to worry too much about should you buy it at $195K, or $200K – just buy it before someone else does!)
If you don’t know what your exit strategy is (i.e. you dont have any plan in mind for the land) then there’s no way you will know what you should pay for it. All you can do is try and save a few thousand $ on the asking price.
(I believe that later this year there will be no +CF deals left in NZ, so I’ve moved here to invest full time. I can find +CF deals for your NZ portfolio for a fee, just email me [email protected])elvesMember@elvesJoin Date: 2003Post Count: 507
supply and demand factors
you might have great location, it might be great block, you might be emotionally tied to it…
check out prices of places sold over last quarter or so, maybe you can go to an agent and kinda talk them into looking at RP data so you get a feel for it or the area.
the price someone will pay depends on how bad you want it, who else may want it, herd mentality, gazumping etc….
what you want for it down the track may not evenutate, the risk factor for you could be the mortgage, and being stuck with something you might or might not sell.
projections are purely that, nothing wrong with it, just be wary, not everyone will see the same thing in the same way as you.
is there a demand in the area? whats happening any highway going thru yardy yar….
” a blind man may see what a sighted man may not”