A summary of my notes from tonights BIG meeting:
A panel of property experts gave their view on what to do in a flat market.
Asy (Real estate agent/Developer/Forum legend):
- Value adding/developing can be used in all markets
- Be creative when thinking about the potential use of a property.
- Talk to the locals to understand an area
Ian Somers (Buy and hold and PIA guru)
- Reverse engineer your property portfolio (Begin with the end in mind - Covey) Work out how many properties you want/need returning how much you want/need is very important. Then you only need to worry about how to accumulate them.
- Ian likes just playing with the figures.
- For him active investing is mowing the lawn.
- Property investor for 30 years. Most of those years the market has been flat!
- Buy whenever you can afford to.
- Buying in a flat market is a good way to avoid queues.
- Time and patience allows him to negotiate a win-win offer for both the seller and the buyer.
- It's alright to be a boring investor.
Karen Murphy - (Reno Queen)
- Important to know the market.
- Negotiating is easier in the current market.
- Houses are sitting for longer on the market currently.
- Look for the 3 D's (Dead-Divorced-Desperate)
- Try ten offers to get one sale
- Your purchase price is the most imporant factor in turning a profit.
- Important to have good relationships with your local realo's.
- Realo's do their stock run mid-week, best time to get the bargains. Don't wait for the weekend paper.
- A $6 bottle of wine for a realo could be a high yielding investment.
- Build strong relationships with your accountant-Solicitor-Financial advisor.
Kevin Hockey - (Real estate agent)
- Provided some insights for the buyers perspective.
- Profits are made when you purchase.
- Ask the same questions in different ways.
1) What is the place likely to sell for?
2) How much will they take?
3) Would the owner be receptive to this figure?
4) What are they expecting?
- Asking the same question repeatedly will get great results, you might not get an answer the first time.
- Don't make ridiculously low offers unless you can back it up with a legitimate reason.
- The most motivated party in a sale is the agent, work with this.
- GO AND TALK TO THE NEIGHBOURS!! They will tell you everything!
- Always make your offer "subject to something" so that you have an out.
- Subject to "Electrical report" is a very useful clause that is seldom used.
- Get the agent onside and keep them there, get them working for you.
- Negotiations don't finish at the time of the contract. A building/pest report can get the price lowered further.
- Silence is golden in negotiating. The first person to speak loses.
- Don't ever indicate that you will pay more.
- Average sale time in Brisbane is 43 days.
- Kevin Hockey's average is 28 days.
- Some houses are sitting on the market for 6 months.
- A very tough market for agents currently.
Chris Natoli - Finance Broker
- Banks are becoming more competitive now in a flat market.
- A good time to lock your equity in.
- Banks are very nervous about flats in postcodes 4000-4004 (Inner Brisbane city) due to a looming oversupply. Most are requiring a 20% deposit.
- Get your pre-approval ready so that you are in a position to take advantages of bargains.
- Values haven't reduced that much at present, property is taking longer to sell however.
- The investor market has cooled.
WaySolid
A panel of property experts gave their view on what to do in a flat market.
Asy (Real estate agent/Developer/Forum legend):
- Value adding/developing can be used in all markets
- Be creative when thinking about the potential use of a property.
- Talk to the locals to understand an area
Ian Somers (Buy and hold and PIA guru)
- Reverse engineer your property portfolio (Begin with the end in mind - Covey) Work out how many properties you want/need returning how much you want/need is very important. Then you only need to worry about how to accumulate them.
- Ian likes just playing with the figures.
- For him active investing is mowing the lawn.
- Property investor for 30 years. Most of those years the market has been flat!
- Buy whenever you can afford to.
- Buying in a flat market is a good way to avoid queues.
- Time and patience allows him to negotiate a win-win offer for both the seller and the buyer.
- It's alright to be a boring investor.
Karen Murphy - (Reno Queen)
- Important to know the market.
- Negotiating is easier in the current market.
- Houses are sitting for longer on the market currently.
- Look for the 3 D's (Dead-Divorced-Desperate)
- Try ten offers to get one sale
- Your purchase price is the most imporant factor in turning a profit.
- Important to have good relationships with your local realo's.
- Realo's do their stock run mid-week, best time to get the bargains. Don't wait for the weekend paper.
- A $6 bottle of wine for a realo could be a high yielding investment.
- Build strong relationships with your accountant-Solicitor-Financial advisor.
Kevin Hockey - (Real estate agent)
- Provided some insights for the buyers perspective.
- Profits are made when you purchase.
- Ask the same questions in different ways.
1) What is the place likely to sell for?
2) How much will they take?
3) Would the owner be receptive to this figure?
4) What are they expecting?
- Asking the same question repeatedly will get great results, you might not get an answer the first time.
- Don't make ridiculously low offers unless you can back it up with a legitimate reason.
- The most motivated party in a sale is the agent, work with this.
- GO AND TALK TO THE NEIGHBOURS!! They will tell you everything!
- Always make your offer "subject to something" so that you have an out.
- Subject to "Electrical report" is a very useful clause that is seldom used.
- Get the agent onside and keep them there, get them working for you.
- Negotiations don't finish at the time of the contract. A building/pest report can get the price lowered further.
- Silence is golden in negotiating. The first person to speak loses.
- Don't ever indicate that you will pay more.
- Average sale time in Brisbane is 43 days.
- Kevin Hockey's average is 28 days.
- Some houses are sitting on the market for 6 months.
- A very tough market for agents currently.
Chris Natoli - Finance Broker
- Banks are becoming more competitive now in a flat market.
- A good time to lock your equity in.
- Banks are very nervous about flats in postcodes 4000-4004 (Inner Brisbane city) due to a looming oversupply. Most are requiring a 20% deposit.
- Get your pre-approval ready so that you are in a position to take advantages of bargains.
- Values haven't reduced that much at present, property is taking longer to sell however.
- The investor market has cooled.
WaySolid
