Best thing learnt on this forum

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From: Brett Watson


Whilst I really enjoy this forum I don't post many messages as there are so many around that know the answers to property questions a lot better than I do. I would like to let all those who contribute regularly that the knowledge you impart is appreciated and I have personally found it a great help.
When I bought my first IP I agreed with the real estate agent and agreed to pay a 10% deposit -this meant organising bridging finance and a lot of extra hassles for me.
Today I bought an IP and told the agent I was only going to pay a 1% deposit. I still got the property for the price I wanted but because of what I have learnt on this forum I no longer have to arrange a big deposit.
 
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Reply: 1
From: J Parker


I agree with you Brett. It really is quite amazing how much you can learn from this forum. Like you, I haven't had a lot of experience in the property investing game, but this forum (amongst other things) has given me confidence to just get out there and do it, which is a major step in itself, when starting out.

I would, however, like to encourage more people to share their good experience contacts with others, such as names of reliable tradesmen, brokers, insurance agents, agents, property managers, solicitors etc etc. It is always hard to find someone these days who is honest, reliable and reasonably priced. Word of mouth really is the best way to do business!
So come on, everybody, if you want to give someone a free plug who deserves it- go right ahead!
Wishing everyone a Happy New Year in 2002,
Cheers, Jacque :)
 
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Reply: 2
From: Ann Tsu


Hi Brett,

Wow how did you do it ?
Only paying 1% of the cost !
Would you mind sharing your experience with us.

Thanks
Ann

On 12/28/01 11:28:00 AM, Brett Watson wrote:
>Whilst I really enjoy this
>forum I don't post many
>messages as there are so many
>around that know the answers
>to property questions a lot
>better than I do. I would like
>to let all those who
>contribute regularly that the
>knowledge you impart is
>appreciated and I have
>personally found it a great
>help.
>When I bought my first IP I
>agreed with the real estate
>agent and agreed to pay a 10%
>deposit -this meant organising
>bridging finance and a lot of
>extra hassles for me.
>Today I bought an IP and told
>the agent I was only going to
>pay a 1% deposit. I still got
>the property for the price I
>wanted but because of what I
>have learnt on this forum I no
>longer have to arrange a big
>deposit.
>
 
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Reply: 2.1
From: Owen .


Ann,

You ask/negotiate/demand/walk away. The vendor has the choice of accepting or losing the sale. There is nothing that says a 10% deposit must be provided. The cynical amongst us will say it is set like this by the agents so they ensure that they will be paid their commissions. If you only put $1000 deposit down and the agent is due to get $6000 for the sale then he must get from the vendor after the sale rather than taking from the deposit (held in trust by the agent) before returning the difference to the vendor.

You can buy a house for $1 if you can negotiate well enough. No, I've never done it but I have got it down to 3%.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 2.1.1
From: Robert Forward


I got one with a 0% down, yes they could have walked away as there wasn't any "consideration" given, but it all went ahead fine.

Another recent one I put in 4% mainly cause I had worked out my figures and new that the 4% cash was needed out of my pocket to purchase the property and the rest was from revals of loans (not X-col though).

It all comes down to how you negotiate your deal. To me if I know I'm not putting my own $$$'s into the deal then I will try for the lowest % deposit I can get, however if I need to put some $$'s in then I am only willing to go that high in my deposit %.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Sim

Administrator
Reply: 2.1.1.1
From: Sim' Hampel


My last deal, the agent asked me ! They said... are you able to put down 2.2% as a deposit ? (actually, they named a dollar figure - which was probably a sizable part of their commission).

I still would have preferred to put down less. $1000 is a nice figure - not too much that it's going to seriously impact you waiting for settlement, but still a sizable enough amount of money so that the owners/agents should be happy that you have serious money on the table.

 
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Reply: 2.1.1.1.1
From: Michael G


Hi,

I've secured a property with a $500 deposit. I just included into the contract that if the sale goes unconditional and I default I'm up for 10% as per normal.

That little clause makes everyone happy and doesnt really cost you anything because if you wish to rescind, you'd be doing it before it goes unconditional otherwise you are going to proceed anyway.

Michael G
 
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Reply: 2.1.1.1.1.1
From: Brent H.


haha - good thinking - excellent clause

I give it a month before it ends up in someone's seminars.

"How YOU can Buy Investment Properties with NO MONEY DOWN - every time!"
 
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