Can you believe?

From: Dale Gatherum-Goss


I spent the looking for another IP and came home empty handed . . . but, what really surprised me were the comments made by real estate agents.

For example:

"To determine the rent, you just multiply the purchase price by 5%"

The poor fellow could not understand why I laughed, nor, why I expected to get a more reasonable answer based on the current rents for the area. Oh well!

What was also interesting was an auction that I attended. Unit passed in 10% below reserve price with only 3 tentative bids and only a handful of people there. And this was in Ringwood with the unit about 500 metres from a major shopping centre and railway station.

I spoke to about 6 agents and they all told me (unbidden too)that the market has turned and that there is more opportunities out there today.

A frustrating and interesting weekend indeed.

Have fun!

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Reply: 1
From: Lan Diep

I also recently asked a few Estate Agents if they had any new townhouses (15k south east area) around $350-$400k. He said we wouldn't be able to get any Townhouses for that amount here - only apartments!

I can't believe it!
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