Mako,go down your local bottle shop and buy the best high end alcohol you can afford,and spend some time reading the various posts that are in this site on companies that work that way and it won't cost you one cent,,because all RE sales 0perates the same way,no success no selling fee..willair..
Australian Investment Institute
- Thread starter JOJO
- Start date
Dont know anything about them (they may be the ducks n*ts who knows), I'm just curious about first time posters that 'just' joined up today (such as yourself) promoting a companies wares at length
Its not Paranoia its just a "higher state of awareness"
and after all you look okay, I'm not sure about the others watching me through the web cam though 
mrmako, as said before, it might not necessarily matter if they're dodgy or not.
What matters is that you're about to buy assets worth several hundred thousand and you want to get the best return from it.
You have the whole of realestate.com.au to choose from in making this pick; why limit your choice to a small number of units that just happened to be pushed by promoters?
No matter how honest the promoters are, and how nice they seem as people, does this guarantee their investment will perform well? No. And no one can make this guarantee - if they do, don't believe them. Besides their job is to offload units for their masters, not to ensure you have a good investment.
There are dozens of properties that could make excellent investments right in your own suburb. You'll only know which ones if you visit the agents, tee up some inspections and make some offers.
How about this three-point-plan that will get an OK IP within a week:
1. Tomorrow contact your bank and make sure you can borrow $210k (no more as that's your spending limit).
2. On Friday go through the for sale ads on the web and maybe go past some houses
3. Early Saturday walk down Watton Street, calling in at all the agents. Say you want to buy the best house you can for your $200k. They might be asking $220k but it's still of interest if they'll come down on the price. Tell them you're looking at others but you will be buying one today.
Ok, you're short-cutting some of the due diligence stuff, so the results might not be as good as the skilled buyer, but you'll be streets ahead of many.
Plus, by following the above you will almost certainly:
* Get a place with at least 5% yield
* Buy a house on a good sized block
* Have no trouble getting tenants as your rent will be affordable ($200-220pw approx)
* Be protected against paying too much by buying below the suburb's median
* Likely to have some potential for value adding (easier as you live nearby)
Can't go far wrong with anything like these:
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007332060
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007358845 (4 bedrooms!)
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006828126
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007371662
Even with a random Werribee house from a random Watton St agent and paying full asking price, you will almost certainly do better from the above than from a spruiker flogging overpriced apartments to the uninformed schmo.
Peter
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mrmako,
This thread and others like it explain it all. There is no rush, you have time to educate yourself without paying the middle man, because that is what you do with these types of companies.
They cannot give you any evidence that a brand new house in Derrimut will have good cap growth, though they will imply that 'property doubles every x years'.
As bT says, knock yourself out paying $50-60k more by using this type of company for the WRONG type of property, because they have the suave, sophisticated selling routine.
bye
This thread and others like it explain it all. There is no rush, you have time to educate yourself without paying the middle man, because that is what you do with these types of companies.
They cannot give you any evidence that a brand new house in Derrimut will have good cap growth, though they will imply that 'property doubles every x years'.
As bT says, knock yourself out paying $50-60k more by using this type of company for the WRONG type of property, because they have the suave, sophisticated selling routine.
bye
I like Willair's idea - relax, have a sip and read, which is what got me on here in the first place.
As far as I know, our visit with their financial people is to talk about the $$ and tax stuff. The first thing I will be doing is checking their credentials. If that looks straight then I will have a listen.
When it gets to looking for the right property, I reckon that's where we might be stuck scratching our heads. All the looking I've done so far just leaves my head spinning. We are trying to avoid getting burnt like we did before but we aren't exactly sure why it turned out to be a dud. The 'advice' we got then turned out to be typical sales crap from the agent. On top of that, any returns were chewed up by the repair costs.
We are thinking that this time around we will buy a new place. Any thoughts??
The woman that came around said that they only do new, but I would like to hear from people here first, before I sit to hear their ideas.
As far as I know, our visit with their financial people is to talk about the $$ and tax stuff. The first thing I will be doing is checking their credentials. If that looks straight then I will have a listen.
When it gets to looking for the right property, I reckon that's where we might be stuck scratching our heads. All the looking I've done so far just leaves my head spinning. We are trying to avoid getting burnt like we did before but we aren't exactly sure why it turned out to be a dud. The 'advice' we got then turned out to be typical sales crap from the agent. On top of that, any returns were chewed up by the repair costs.
We are thinking that this time around we will buy a new place. Any thoughts??
The woman that came around said that they only do new, but I would like to hear from people here first, before I sit to hear their ideas.
To Bill L
Thankyou so much for your condescending 'Which part of this did you not understand???' Bill L
But, the last place we bought was older, and I imagine the fibbing agent got paid commission on that too. They all get commision!! And I wasn't talking about Derrimut or any other particular suburb.
What I was hoping on, was some suggestions re new properties and what to look/lookout for. And, if they are going to suggest something new, what sort of things should I look for when it comes to comparing their offerings with what is available through a local agent.
Thankyou so much for your condescending 'Which part of this did you not understand???' Bill L
But, the last place we bought was older, and I imagine the fibbing agent got paid commission on that too. They all get commision!! And I wasn't talking about Derrimut or any other particular suburb.
What I was hoping on, was some suggestions re new properties and what to look/lookout for. And, if they are going to suggest something new, what sort of things should I look for when it comes to comparing their offerings with what is available through a local agent.
To Spiderman
Thanks for your input. What you have suggested is pretty much (not exactly) what we actually did first time around. We are endeavouring to do things smarter this time around.
In your thread you said, "so the results might not be as good as the skilled buyer". Therein lies the issue, we want to be/become skilled buyers. thankyou all the same though.
Thanks for your input. What you have suggested is pretty much (not exactly) what we actually did first time around. We are endeavouring to do things smarter this time around.
In your thread you said, "so the results might not be as good as the skilled buyer". Therein lies the issue, we want to be/become skilled buyers. thankyou all the same though.
Mrmako,
I'll repeat, what makes you think brand new will make a better investment??
You become a skilled buyer by observing an area, looking at the properties there, getting to know what they sell for and rent for. It takes time, but there is no rush.
If you put an offer on a property, you make it subject to a building inspection, and then pay a professional to give you a report on it. If it comes in bad, you can either walk or offer a lower price because of the problems.
You could start by spending many hours reading through the vast information on this forum.
I'm interested in knowing where and when you bought (then sold) a lemon, given the boom we have just had.
bye
I'll repeat, what makes you think brand new will make a better investment??
You become a skilled buyer by observing an area, looking at the properties there, getting to know what they sell for and rent for. It takes time, but there is no rush.
If you put an offer on a property, you make it subject to a building inspection, and then pay a professional to give you a report on it. If it comes in bad, you can either walk or offer a lower price because of the problems.
You could start by spending many hours reading through the vast information on this forum.
I'm interested in knowing where and when you bought (then sold) a lemon, given the boom we have just had.
bye
Yep. Which means doing it independently (but doing a better job at it) rather than going to some offloader (which is less smart than what you did first time around).
MrMako
We can help you (but only if you let us).
This is what you need to do. Tell us what your budget is and what your investment goals are for this property. If you are not sure what your investment goals should be then we can start off by talking about that.
We can then post deals and discuss them openly. Anything that isn't a half decent deal will get cut down pretty fast.
It would also be helpful if you told us what went wrong on your previous deal so we can better understand what happened.
In the interim its ok to talk to the Odyssey people but don't sign anything until you post the details here. We can then check it over. Although we are strangers we have no financial interest in the outcome.
Be wary of anyone messaging you with a great deal that doesn't want it posted on the board - there can be sharks in these waters too.
Finally one of the first things you need to understand is that new house and land packages will generally underperform the market for the first few years because there is almost always a premium paid for shiny new things which is lost as it gets used for the first time (its like losing 10k as you drive a car off the showroom floor).
We can help you (but only if you let us).
This is what you need to do. Tell us what your budget is and what your investment goals are for this property. If you are not sure what your investment goals should be then we can start off by talking about that.
We can then post deals and discuss them openly. Anything that isn't a half decent deal will get cut down pretty fast.
It would also be helpful if you told us what went wrong on your previous deal so we can better understand what happened.
In the interim its ok to talk to the Odyssey people but don't sign anything until you post the details here. We can then check it over. Although we are strangers we have no financial interest in the outcome.
Be wary of anyone messaging you with a great deal that doesn't want it posted on the board - there can be sharks in these waters too.
Finally one of the first things you need to understand is that new house and land packages will generally underperform the market for the first few years because there is almost always a premium paid for shiny new things which is lost as it gets used for the first time (its like losing 10k as you drive a car off the showroom floor).
To Bill L.....The lemon we got was down in Geelong in Belmont. We kept hearing how Geelong was booming so we went down and did some looking. The capital growth was ok according to our accountant but we had to spend way too much on repairs. Regarding a pre-inspection, we actually did get one and it forecasted $3200 in repairs so we added this to our bargaining power to lower the asking price. But, as time travelled though, we ended up spending just over $27k over 2 and a bit years. It was a thousand or two here, there and everwhere. It drained us dry - lets just say home wasn't a good place to be during that time. Having said this though, friends of ours bought an even older place around the same time and have hardly spent a cent on it. Go figure!
To Boomtown...Firstly thanks for the heads up re sharks on this forum. Cheers. And, your offer of assistance is awesome too - I will take you up on it. A big part of our reasoning for the Odyssey visit is to get some help sorting out our goals which apparently they do as part of the membership. And I definitely won't be signing anything. Our aim there is to have a listen and hopefully learn some more.
To Spiderman... I hear what you say about doing it independantly but my issue is that while trying to hunt down a good investment property, (and hopefully more to follow), I'm also trying to build my career, and I'm studying off-campus, and we've got rug-rats that need feeding and yelling at - this concept I am sure is not new to some of you!! Anyway, surely at some point we have to trust the advice we pay for. And this was my first question here, are they dodgy or not? Ultimately though, the cook and I don't want to spend our whole lives reading classifieds and such. We want to be able to buy a good property and get back to our lives which are busy enough. And then hopefully we can be in a position to buy again a few years down the track.
At this point I reckon I will follow Boomtown's wisdom and check them out without signing anything. And afterwards, I will list it on here and check the feedback it receives. In the meantime, I will do some more reading on here.
To Boomtown...Firstly thanks for the heads up re sharks on this forum. Cheers. And, your offer of assistance is awesome too - I will take you up on it. A big part of our reasoning for the Odyssey visit is to get some help sorting out our goals which apparently they do as part of the membership. And I definitely won't be signing anything. Our aim there is to have a listen and hopefully learn some more.
To Spiderman... I hear what you say about doing it independantly but my issue is that while trying to hunt down a good investment property, (and hopefully more to follow), I'm also trying to build my career, and I'm studying off-campus, and we've got rug-rats that need feeding and yelling at - this concept I am sure is not new to some of you!! Anyway, surely at some point we have to trust the advice we pay for. And this was my first question here, are they dodgy or not? Ultimately though, the cook and I don't want to spend our whole lives reading classifieds and such. We want to be able to buy a good property and get back to our lives which are busy enough. And then hopefully we can be in a position to buy again a few years down the track.
At this point I reckon I will follow Boomtown's wisdom and check them out without signing anything. And afterwards, I will list it on here and check the feedback it receives. In the meantime, I will do some more reading on here.
Hi Mrmako,
I think it would be very beneficial to many people if we could analyse the "lemon" with 20-20 hindsight....
At this point, you need to get info on the suburb - last 10 years data would be handy. In Victoria you can buy this in a book or CD from Information Victoria
http://www.bookshop.vic.gov.au/sear...=value&Location=&Letter=&keyword=&Department=
Check out the suburbs growht and volatility - compare to other suburbs.
It will also give you a median for the suburb - which can act as a price guide. As a very general rule of thuimb, if you can pick something up for under the median, it's a good start.
Before you go ahead with a purchase, get an inspection done by a professional - they will generally pick up obvious faults.
I have bought off the plan, brand new, old, and 100 years old.
I have had about the same number of repairs on all of them.... (yes brand new needs lots of repairs and additional costs you won't even begin to imagine!)
Cheers,
The Y-man
I think it would be very beneficial to many people if we could analyse the "lemon" with 20-20 hindsight....
At this point, you need to get info on the suburb - last 10 years data would be handy. In Victoria you can buy this in a book or CD from Information Victoria
http://www.bookshop.vic.gov.au/sear...=value&Location=&Letter=&keyword=&Department=
Check out the suburbs growht and volatility - compare to other suburbs.
It will also give you a median for the suburb - which can act as a price guide. As a very general rule of thuimb, if you can pick something up for under the median, it's a good start.
Before you go ahead with a purchase, get an inspection done by a professional - they will generally pick up obvious faults.
I have bought off the plan, brand new, old, and 100 years old.
I have had about the same number of repairs on all of them.... (yes brand new needs lots of repairs and additional costs you won't even begin to imagine!)
Cheers,
The Y-man
Hi MrMako,
We have an IP in North Geelong, bought in 03. It needed massive repairs (had been vacant for 9 years but had had squatters in making a mess).
The state of the house was reflected in the price we paid. It was not a negotiated price, but one based on an independant valuation, for various legal reasons due to the situation.
While we have had growth 6-7% pa, it has not been exceptional and has a gross rent return of ~7% on our original cost.
The 'when' part of your property investment in Belmont is fairly important, as the areas price is substantially higher than a couple of years ago. I know the area fairly well, and was looking to purchase there, but missed that opportunity. With the new ring road around Geelong, and the still very affordable housing in the area (compared to other areas), I cannot see why it would be a worse buy than a shiny new house in the middle of nowhere.
Do you still own the Belmont property? What sort of growth has it had??
Again I ask, What type of evidence is there that the new house in Derrimut for $350k will have a reasonable rate of growth in value??
bye
We have an IP in North Geelong, bought in 03. It needed massive repairs (had been vacant for 9 years but had had squatters in making a mess).
The state of the house was reflected in the price we paid. It was not a negotiated price, but one based on an independant valuation, for various legal reasons due to the situation.
While we have had growth 6-7% pa, it has not been exceptional and has a gross rent return of ~7% on our original cost.
The 'when' part of your property investment in Belmont is fairly important, as the areas price is substantially higher than a couple of years ago. I know the area fairly well, and was looking to purchase there, but missed that opportunity. With the new ring road around Geelong, and the still very affordable housing in the area (compared to other areas), I cannot see why it would be a worse buy than a shiny new house in the middle of nowhere.
Do you still own the Belmont property? What sort of growth has it had??
Again I ask, What type of evidence is there that the new house in Derrimut for $350k will have a reasonable rate of growth in value??
bye
Hi there Twitch... pardon my ignorance but what is a BA? Also, what actual extra fees could I incur and what is the best way to avoid them please? Does a BA charge fees?
Hi Y Man... Thanks for the link to that book - that sounds useful and I like the thought of choosing below the median.
To Y Man and Bill L, we sold the Belmont place early '06 and have had other things on the agenda since then but as it says in the song 'you shook me all night long'.... we are back in the ring for another swing! We can't undo anything to do with that house so we just want to move forward. Incidentally it took some pretty heavy convincing to get the cook in the right frame of mind to go down the investment property route again!
Oh, and Bill L... I couldn't care less about Derrimut. I've never said anything about it. Any reference to Derrimut was from someone else I believe. Regarding my reference to a new place, what I actually said was....
"We are thinking that this time around we will buy a new place. Any thoughts??"
The only reason 'new' seems more appealing to old is because we got burnt on the old one before. I do understand that new can involve having to spend extra on paths, clothsline, and curtains etc but the cook has heard that some mobs build new and include all the bells and whistles. Now I should stress that I'm not here trying to say that I think that is the best way to go! - It just seems attractive versus having the hassles with an old clunker again. But, as I said before, friends of ours bought an even older clunker and they're laughing so far. And, this is where all the different options start popping up - I get confused and the cook throws a wobbly.
What I have worked out so far is that there is literally heaps to learn. I know we need to learn more, but at this point I am wondering if I have I got the time and inclination? I say this because from what I have read on other threads, some of what seems to be good for quite a few of the users, is aparently not been good for a number of the other users. To me, two things have become obvious...1. That not all things (properties and suburbs) are equal, and 2. That the actual specifics of each property is nowhere near as important as following, not some, but all of the investment property rules. Again, this is where it gets confusing sometimes because just as I seem to pick up on a new rule, I read further and sometimes find something that seems to contradict it.
I got side-tracked while doing this reply and actually downloaded that report that Y Man suggested. Lots of reading there!!
Anyway, the bottom line - at this early stage I am still keen to keep trying to learn and most of the feedback here has been good. We are hopefully going to better clarify and reset our goals tomorrow, and then circle an area on the map and start looking. I will be sure to fill you guys in on what Odyssey have got to say too.
Hi Y Man... Thanks for the link to that book - that sounds useful and I like the thought of choosing below the median.
To Y Man and Bill L, we sold the Belmont place early '06 and have had other things on the agenda since then but as it says in the song 'you shook me all night long'.... we are back in the ring for another swing! We can't undo anything to do with that house so we just want to move forward. Incidentally it took some pretty heavy convincing to get the cook in the right frame of mind to go down the investment property route again!
Oh, and Bill L... I couldn't care less about Derrimut. I've never said anything about it. Any reference to Derrimut was from someone else I believe. Regarding my reference to a new place, what I actually said was....
"We are thinking that this time around we will buy a new place. Any thoughts??"
The only reason 'new' seems more appealing to old is because we got burnt on the old one before. I do understand that new can involve having to spend extra on paths, clothsline, and curtains etc but the cook has heard that some mobs build new and include all the bells and whistles. Now I should stress that I'm not here trying to say that I think that is the best way to go! - It just seems attractive versus having the hassles with an old clunker again. But, as I said before, friends of ours bought an even older clunker and they're laughing so far. And, this is where all the different options start popping up - I get confused and the cook throws a wobbly.
What I have worked out so far is that there is literally heaps to learn. I know we need to learn more, but at this point I am wondering if I have I got the time and inclination? I say this because from what I have read on other threads, some of what seems to be good for quite a few of the users, is aparently not been good for a number of the other users. To me, two things have become obvious...1. That not all things (properties and suburbs) are equal, and 2. That the actual specifics of each property is nowhere near as important as following, not some, but all of the investment property rules. Again, this is where it gets confusing sometimes because just as I seem to pick up on a new rule, I read further and sometimes find something that seems to contradict it.
I got side-tracked while doing this reply and actually downloaded that report that Y Man suggested. Lots of reading there!!
Anyway, the bottom line - at this early stage I am still keen to keep trying to learn and most of the feedback here has been good. We are hopefully going to better clarify and reset our goals tomorrow, and then circle an area on the map and start looking. I will be sure to fill you guys in on what Odyssey have got to say too.
If you buy an established dwelling (say 3 - 5 years old) you dont go through the initial depreciation or the hassle of building but your repairs are limited because it is a mostly new dwelling and you still get good tax depreciation. Best of both worlds in my book.
its not sprint or run. its get onto the closest 747, and fly the hell outta there!!!
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