Adelaide nras

[RIC84]

does anyone know where you can find Nras properties in Adelaide and from companies not over charging - ie actually market value for the properties.

everything in adelaide seems over priced compared to other properties in realestate.com and/or gives clarity/transparency about the whole process.

Ideally looking for mid to low priced areas like playford and colonnades way.

 

[Colin Rice]

I have a contact over there who does NRAS properties.

We discussed the valuation issue last time he was here and he said he has a solution.

PM me if you want his details.

 

[Spades]

RIC84,
Good luck in finding a NRAS prop that is actually market value.
Cheers Spades.

 

[Colin Rice]

RIC84,
Good luck in finding a NRAS prop that is actually market value.
Cheers Spades.

Its possible. Ive done finance on NRAS where the val came in on purchase price.

 

[dbun]

All the NRAS stuff I've looked into never had a val come in on purchase price. Always under.

The agent representing the NRAS stock always had a reason for it too....."oh, it's because they didn't factor in this", "oh, they overlooked that" etc.

 

[Brady]

I have a contact over there who does NRAS properties.

We discussed the valuation issue last time he was here and he said he has a solution.

PM me if you want his details.

Care to share what his solution is?

Does he have properties for sale that are actually market value?

Or a solution to get the finance approved?

 

[Corey Batt]

Care to share what his solution is?

Does he have properties for sale that are actually market value?

Or a solution to get the finance approved?

I'm curious also.

I had a property developer who sells NRAS take me out for lunch the other day. He admitted that the NRAS properties are overpriced trash, but they had to try flog them off regardless.

Thanked him for the free lunch and off I went with the rest of my day.

 

[Colin Rice]

A rebate to cover all or part of the val shortfall is the short answer.

 

[Colin Rice]

I had a property developer who sells NRAS take me out for lunch the other day. He admitted that the NRAS properties are overpriced trash, but they had to try flog them off regardless.

Thanked him for the free lunch and off I went with the rest of my day.

I would do likewise.

 

[Brady]

A rebate to cover all or part of the val shortfall is the short answer.

I don't get it. Why not just sell the product cheaper.

Also how can you do this rebate.

If there is a rebate on the contract then the valuation will be decreased further...

If you dont have the rebate in the writing/contract well who says your getting it.

And if you're not telling the bank there is a rebate involved well... Good luck to you.

Am I missing something???

 

[Colin Rice]

I don't get it. Why not just sell the product cheaper.

I am assuming the price would be set by the developer.

I also am led to believe that some of the stock comes in on valuation.

 

[Corey Batt]

I don't get it. Why not just sell the product cheaper.

Also how can you do this rebate.

If there is a rebate on the contract then the valuation will be decreased further...

If you dont have the rebate in the writing/contract well who says your getting it.

And if you're not telling the bank there is a rebate involved well... Good luck to you.

Am I missing something???

This.

Rebates and other silly ideas that real estate agents come up with are the bane of my existence. The other area they are frequently used in are land sales and new builds amongst apartment and townhouse developments. Pump up the sale prices to keep sales history of the area up, whilst causing pain for everyone else concerned.

 

[Brady]

I am assuming the price would be set by the developer.

I also am led to believe that some of the stock comes in on valuation.

I would have a guess that these valuations are only coming in because of the previous sales (even though the valuaions are coming in short).

I wouldn't be touching this stock with a 10foot pole.

The fact that they offer a rebate means they are aware that the valuation is coming in short and they haven't been able to overcome this with comparable sales which reflects the true value.

 

[Colin Rice]

I wouldn't be touching this stock with a 10foot pole.

11 foot pole?

 

[Rolf Latham]

Care to share what his solution is?

We will only do them where we can do an upfront val..................

Not a solution per se, but a

Typically they do come in light, more so in SE than elsewhere.

The consolidation of available valuers into mainly VMS and Valex has made getting a range of vals much harder, since a bunch of lenders will now rely on the ONE vals outcome regardless of the validity of same

I am surprised that someone hasnt piped up and seen this as an ACCC type issue where we are actually seeing a lack of market competition - available funding is being reduced as a result - certainly at the margins.

Some would see this as a good thing I expect.

ta
rolf

 

[Brady]

We will only do them where we can do an upfront val..................

ta
rolf

If the val is coming in there is no problem

But great method doing it upfront, saves the wasted hit on the file if its short.

 

[euro73]

I'm curious also.

I had a property developer who sells NRAS take me out for lunch the other day. He admitted that the NRAS properties are overpriced trash, but they had to try flog them off regardless.

Thanked him for the free lunch and off I went with the rest of my day.

This is a pretty loose, dangerous comment to be posting, without any evidence to support it. Where's the stock. What's the stock? What's it priced at? What should it be priced at? etc.... Your post fundamentally implies that all NRAS is overpriced rubbish, so I'm going to have a little bit of a crack at you for it, because I think it's ill founded and unfair of you to draw such a long bow and make comments of that nature without qualifying them.

I've just sold 11 NRAS approved properties on Sydney's Northern beaches, in a very high quality development where EVERY valuation, from EVERY different lender and EVERY different valuation firm came in at the exact Contract Price. CBRE, LMWHegney, OPTEON, MVS, VALUECORP and PROPELL - all on the money. Is this overpriced trash???

This year I've also sold other NRAS approved properties in projects in Zillmere, Townsville and Gladstone QLD , Athol Park and Salisbury North SA, Fairy Meadow, Rosehill and Wentworthville NSW to name a few, where valuations were again, ON THE MONEY... Multiple different lenders, and multiple valuers. Overpriced trash????

Are there occasional valuations that come in low..? yes. Why? Valuers aren't rocket scientists and amazingly, plenty of new rookies coming through who are ultra conservative on new stock, whether it's NRAS or not. And some developers of new stock are unrealistic... it happens. Same as vendors trying to sell existing PPOR's @ unrealistic prices. And the there are the greedy marketers charging 30-40K to flog a bog standard product that deserves 3% comms, not 6-8%. Happens. But I screen everything with up front vals, and I can assure you, there are good NRAS deals to be had...

What I'm saying is; perhaps the developer you had lunch with, and his particular project , is trash... and perhaps he begged, borrowed or stole some NRAS allocations to try and make them a little less unattractive to potential purchasers - but really, posting such comments without qualification serves no purpose but to reinforce an incorrect stigma that NRAS by its nature = crap stock, and it's just patently untrue. It may be true of his particular project and stock, but I think it's important to be a little more careful, and qualify comments more fully, because it certainly isn't true of the kinds of projects I source for clients.

 

[Brady]

This is a pretty loose, dangerous comment to be posting, without any evidence to support it. Where's the stock. What's the stock? What's it priced at? What should it be priced at? etc.... Your post fundamentally implies that all NRAS is overpriced rubbish, so I'm going to have a little bit of a crack at you for it, because I think it's ill founded and unfair of you to draw such a long bow and make comments of that nature without qualifying them.

I've just sold 11 NRAS approved properties on Sydney's Northern beaches, in a very high quality development where EVERY valuation, from EVERY different lender and EVERY different valuation firm came in at the exact Contract Price. CBRE, LMWHegney, OPTEON, MVS, VALUECORP and PROPELL - all on the money. Is this overpriced trash???

This year I've also sold other NRAS approved properties in projects in Zillmere, Townsville and Gladstone QLD , Athol Park and Salisbury North SA, Fairy Meadow, Rosehill and Wentworthville NSW to name a few, where valuations were again, ON THE MONEY... Multiple different lenders, and multiple valuers. Overpriced trash????

Are there occasional valuations that come in low..? yes. Why? Valuers aren't rocket scientists and amazingly, plenty of new rookies coming through who are ultra conservative on new stock, whether it's NRAS or not. And some developers of new stock are unrealistic... it happens. Same as vendors trying to sell existing PPOR's @ unrealistic prices. And the there are the greedy marketers charging 30-40K to flog a bog standard product that deserves 3% comms, not 6-8%. Happens. But I screen everything with up front vals, and I can assure you, there are good NRAS deals to be had...

What I'm saying is; perhaps the developer you had lunch with, and his particular project , is trash... and perhaps he begged, borrowed or stole some NRAS allocations to try and make them a little less unattractive to potential purchasers - but really, posting such comments without qualification serves no purpose but to reinforce an incorrect stigma that NRAS by its nature = crap stock, and it's just patently untrue. It may be true of his particular project and stock, but I think it's important to be a little more careful, and qualify comments more fully, because it certainly isn't true of the kinds of projects I source for clients.

Didn't read the full post, too long will at a later stage...

But I believe you have misinterpreted CJay's post (I'm sure he will correct me if I'm wrong) but I believe he had lunch with A particular developer who wanted CJay to push some stock for him and he walked away (which I know he would as would I).

I think he is more than happy to know of some Adelaide NRAS properties that do actually stack up with valuations, I'm yet to see one...

Please pass me a link of NRAS in Adelaide that val's are stacking up...

 

[Corey Batt]

This is a pretty loose, dangerous comment to be posting, without any evidence to support it. Where's the stock. What's the stock? What's it priced at? What should it be priced at? etc.... Your post fundamentally implies that all NRAS is overpriced rubbish, so I'm going to have a little bit of a crack at you for it, because I think it's ill founded and unfair of you to draw such a long bow and make comments of that nature without qualifying them.

I've just sold 11 NRAS approved properties on Sydney's Northern beaches, in a very high quality development where EVERY valuation, from EVERY different lender and EVERY different valuation firm came in at the exact Contract Price. CBRE, LMWHegney, OPTEON, MVS, VALUECORP and PROPELL - all on the money. Is this overpriced trash???

This year I've also sold other NRAS approved properties in projects in Zillmere, Townsville and Gladstone QLD , Athol Park and Salisbury North SA, Fairy Meadow, Rosehill and Wentworthville NSW to name a few, where valuations were again, ON THE MONEY... Multiple different lenders, and multiple valuers. Overpriced trash????

Are there occasional valuations that come in low..? yes. Why? Valuers aren't rocket scientists and amazingly, plenty of new rookies coming through who are ultra conservative on new stock, whether it's NRAS or not. And some developers of new stock are unrealistic... it happens. Same as vendors trying to sell existing PPOR's @ unrealistic prices. And the there are the greedy marketers charging 30-40K to flog a bog standard product that deserves 3% comms, not 6-8%. Happens. But I screen everything with up front vals, and I can assure you, there are good NRAS deals to be had...

What I'm saying is; perhaps the developer you had lunch with, and his particular project , is trash... and perhaps he begged, borrowed or stole some NRAS allocations to try and make them a little less unattractive to potential purchasers - but really, posting such comments without qualification serves no purpose but to reinforce an incorrect stigma that NRAS by its nature = crap stock, and it's just patently untrue. It may be true of his particular project and stock, but I think it's important to be a little more careful, and qualify comments more fully, because it certainly isn't true of the kinds of projects I source for clients.

As Brady has suggest euro, these comments were specific to the developer in question, not NRAS as a whole. The stock shown was largely in line with what you were suggest re; suppliers with 6-8% commissions. When a developer tries to over 'incentives' to pass on their stock to clients, they've lost me.

I'd be more than happy to know of purchaser-beneficial NRAS deals which are focused upon value-add, as opposed to extortionate pricing and misinformation, especially in Adelaide.

I can understand how you work in the industry and may take anti-NRAS comments as a personal affront. This is not the case, more of a reflection of the issue of certain market players which have been attracted to the NRAS marketplace. Liked Brady, I'd be very interested if you can link some Adelaide examples, as it is a type of investment which is generating interest amongst investors and those looking at gaining exposure to property without a cash flow burden - but to do date there haven't been too many success stories to back it in common occurrence.

 

[Noknee]

This is a pretty loose, dangerous comment to be posting, without any evidence to support it. Where's the stock. What's the stock? What's it priced at? What should it be priced at? etc.... Your post fundamentally implies that all NRAS is overpriced rubbish, so I'm going to have a little bit of a crack at you for it, because I think it's ill founded and unfair of you to draw such a long bow and make comments of that nature without qualifying them.

I've just sold 11 NRAS approved properties on Sydney's Northern beaches, in a very high quality development where EVERY valuation, from EVERY different lender and EVERY different valuation firm came in at the exact Contract Price. CBRE, LMWHegney, OPTEON, MVS, VALUECORP and PROPELL - all on the money. Is this overpriced trash???

This year I've also sold other NRAS approved properties in projects in Zillmere, Townsville and Gladstone QLD , Athol Park and Salisbury North SA, Fairy Meadow, Rosehill and Wentworthville NSW to name a few, where valuations were again, ON THE MONEY... Multiple different lenders, and multiple valuers. Overpriced trash????

Are there occasional valuations that come in low..? yes. Why? Valuers aren't rocket scientists and amazingly, plenty of new rookies coming through who are ultra conservative on new stock, whether it's NRAS or not. And some developers of new stock are unrealistic... it happens. Same as vendors trying to sell existing PPOR's @ unrealistic prices. And the there are the greedy marketers charging 30-40K to flog a bog standard product that deserves 3% comms, not 6-8%. Happens. But I screen everything with up front vals, and I can assure you, there are good NRAS deals to be had...

What I'm saying is; perhaps the developer you had lunch with, and his particular project , is trash... and perhaps he begged, borrowed or stole some NRAS allocations to try and make them a little less unattractive to potential purchasers - but really, posting such comments without qualification serves no purpose but to reinforce an incorrect stigma that NRAS by its nature = crap stock, and it's just patently untrue. It may be true of his particular project and stock, but I think it's important to be a little more careful, and qualify comments more fully, because it certainly isn't true of the kinds of projects I source for clients.

Just reading this euro

I would love to hear the numbers from the northern beaches too if you don't have any Adelaide figures.

Cheers