A good deal?

From: Jude H

Thoughts most welcome.

Firstly...You know who you are.. DUCK!! :)

Regional VIC town, population 18,000. 5 X 1 bed flats. Asking 99K current rent pa $18200. Figure to get it for 90K (not low enough?)

WAY WAY WAY out of my comfort zone. However, seems to good to pass by, so I just expand my comfort zone right?

Have seen pictures nice clean looking property. Not BV or TC. Looks like some sort of metal sheeting but nice enough.

What do you reckon?


Last edited by a moderator:
Reply: 1
From: GoAnna !

If you decide you don't want it just flip it to me!

Last edited by a moderator:
Reply: 2.1
From: Jude H


Had to laugh on reading your answer. See what TV does to us? All I could think of was Flip it to me! Flip it to me!

What would you offer for it? (not for flipping, if you were me trying to buy it)

Jude :)
Last edited by a moderator:
Reply: 3
From: Yuch .


Don't know much about Vic but one thing you need to check is if the property is one torrens title or strata title.

If the whole block is torrens title, then it's treated as a commercial property and you can only borrow 70% against it.

Last edited by a moderator:
Reply: 3.1
From: Jude H

thanks yuchun,

didn't know that. will look into it.

Last edited by a moderator:
Reply: 4
From: Michael Yardney

How can you know if its a good deal if you not an expert in the geographic area you are buying into? In the current market there are enuf bargains around and there will be more as the "recession" hits. Before you buy any property get to know the geographic area in which you are buying like the back of your hand -develop your new "comfort zone"... otherwise you won't know a bargain when you see one, or even worse you will think something is a bargain when it is NOT.
Michael Yardney Metropole Properties
Last edited by a moderator:
Reply: 4.1
From: Kristine .

Sorry, Yuchen

Torrens title simply means the title is registered with the State (Victorian)Government under the Torrens system of registration (Torrens system started in SA)ie that the State guarantees the validity of the title and the registration of owners, mortgages, covenants, drainage and other encumbrances on the title.

Strata title has now been fazed out, although some still exist and since 1988 the Subdivision of Land Act means that all land is now 'subdivided' which is what happened before, but words like strata, stratum, cluster were used to describe the internal subdivision of a title.

Owners of other types of title can apply to have the whole development registered as a sub-division instead of eg strata. Can have benefits for financing, inheritance etc but not much.

Zoning, restrictions on permit, type of construction and market risk factors (eg in Gippsland the LVR is more stringent than in Melbourne suburbs because the market is less active)are likely influences on the lender.

However, if flats are under the old 'company share' title, where the owners hold shares in the company which owns the property, banks were never keen on using these as security because ownership was limited by shares.

Of course, if the whole property is owned by one person, and assuming fire ratings and building standards complied, perhaps the building could be sub-divided into separate freehold titles. (value added exercise)

Kaching! My $0.02 worth

Last edited by a moderator:
Reply: 4.1.1
From: Michael Colletti

Why buy in the country? if your looking for capital growth i would think it would be better to stay in your comfort zone and wait until you find a place where your money will work better for you. Rent is not every thing!
That's just my thought.
Last edited by a moderator: