How much influence you had (if any)

Hi Guys,

How much influence you had (if any) from your wife, husband, father, mother (someone else) when making a decision to buy your PPOR / IP.

The reason I asked is that , I wanted to buy a house in outer suburb (SE corner) but end up in a 2 bed flat (inner eastern_3128) because my other half did not want to live in outer suburb.

KK
 
I guess I have had the majority of influence. Selecting areas, then selecting IP's, taking it back to the Obsession board of directors, stating my case and getting it passed. (That's Mr OO).

I'm the property geek/nerd. Mr OO contributes as he so feels necessary. Sometimes he says great deal lets go, sometimes he says "but what about...x y z" Sometimes I buy stuff and he doesn't find out for hours. But, generally I do like to run things by him, he has a good logical brain to run things by.

The other major, major influence/inspiration/experienced property investor is a person that knows as much as, (what I am up to) as what Mr OO does...she never tells us what to do, or offers advice on what to do.... but has care to considers that we listen very carefully to.

So that's a couple of people. 3 of us all up. :)

None of the property is a PPOR, it is all IP's. We don't have a PPOR.
 
We went with the methodology of consulting the family member who we knew was the wealthiest, almost entirely made from property. He had about 3M behind him and was a total guru in our eyes.


First prop was an IP. The wife and her Uncle chose it. I never saw it, just paid for it. Ended up being a dog and we later shot it.

Second prop was an IP. Myself, the wife and to a lesser degree her uncle chose it. It was a dog from the start and never recovered. Shot that as well.

Third prop was a PPoR, later to be an IP. The wife and I both liked it, big triplex block, good bones, horrible garden, divorcing Vendors. Wife's Uncle was consulted yet again and strongly advised not to buy it, said it was a dog. We bought it anyway and have keep it ever since and it was a good decision.

Ran the Uncle off and surpassed him years ago.

The rest up until recently have been decided upon by myself doing the research, and the wife taking the position of throwing negative what-if scenarios at them. If they die during her onslaught, the deal is dropped......if she cannot pick holes in the deal, it survives and we proceed.

This method has it's drawbacks however, as the muck thrower needs to know what s/he's talking about to be able to throw intelligent muck, otherwise you get into all that touchy feely stuff where all rational thought goes straight out the window and you are left with nothing.
 
Hi Guys,

How much influence you had (if any) from your wife, husband, father, mother (someone else) when making a decision to buy your PPOR / IP.

The reason I asked is that , I wanted to buy a house in outer suburb (SE corner) but end up in a 2 bed flat (inner eastern_3128) because my other half did not want to live in outer suburb.

KK

So I'm assuming it was for a PPOR.
It is different to IPs as you need to have a place you are both happy to live in. With IP's it's more about the numbers as opposed to the "nice" areas.

With my first PPOR I chose it as hubby (then boyfriend) didn't have a say.:D

He moved in. We bought our second IP in an area we were happy to raise our children in (good schools etc).

With our Ip's I'm the one that does all the looking and he usually defers to me. Although one he didn't like. We discussed it and decided not to go ahead. Worked out to be the right decision as bank will not release the title to the guy who bought it. Vendor owed much more than the sale price.

Lately though I have been looking at properties to renovate and now he is taking an interest. He loves fixing things.

He even looks on Realestate.com now and shows ME things. He gets a bit carried away though. He even bought some stuff on Ebay for the reno (which we got outbid on at auction). Doesn't matter though, the stuff was too cheap to pass up. Now we just need a place to put the kitchen (I kid you not), tiles, lights, (more, more, more).

We've only done a minor reno on a unit so far (kitchen, refurb bathroom, paint). So it will be good to see how it goes.
 
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You are correct Travelbug, that was for PPOR and that was a good decision because we have good CG in last few years (2007 mini boom) and we were able to use our equity (wisely)
from PPOR to buy first IP in the same suburb (3128).

I doubt that we could have bought the IP if we bought in outer suburb but in my opinion houses are better than the flat as there is NO land component.

BTW we are SINKs and therefore can live in flat, without own backyard.


KK
______________________________
Trust your hopes, not your fears.
 
in my opinion houses are better than the flat as there is NO land component.
Not necessarily; units in strong suburbs can have as much or more land component than houses in outer suburbs.

For example, a $350K home in an outer suburb probably has a land component of only $150K.

But if you have a $350K unit that's one of a block of six older units in a good suburb, the land component could easily be $150K or more. (ie Total land value > $900K.)
 
It depends on areas as well.

When we bought our second PPOR (a house in Baulkham Hills) a friend of ours bought a 2 bed unit for the same price. We thought he was crazy but he realised a slightly better CG than us when he sold. It was in Drummoyne and walking distance to the river cat.

Location Location:D
 
Not necessarily; units in strong suburbs can have as much or more land component than houses in outer suburbs.

For example, a $350K home in an outer suburb probably has a land component of only $150K.

But if you have a $350K unit that's one of a block of six older units in a good suburb, the land component could easily be $150K or more. (ie Total land value > $900K.)

very true

I valued a maisonette in Toorak years ago. 1 of 4 on a huge block.

The value of the land component -undivided 1/4 of the site,- was worth more than the value of the maisonette ... the valuation of the maissonette came in as 90% represented by the land component.

I have seen this in small blocks of units in other high value suburbs

cheers

RightValue
 
Twice now we have made a habit of doing things a little differently. Once, before we got married, we were looking around for a house to live in so my then fiancee could claim the FHOG as I already had a house we were going to then turn into an IP. After looking for awhile she found something "perfect" in a totally different suburb to where we were thinking. She phoned me one day and said "Honey, this is perfect - I'm going to offer the asking price!" (she had good reasons...). To which I responded "Yeah, OK... I guess..." :eek: Never saw the place until after the deal was done... it was a nice place to live though as well as a fantastic investment!

A couple of years later and we are looking for an IP with a plan to potentially turn it into a PPOR for a family later. Had to be a good suburb, expensive place etc - we had been looking at some suburbs and then looked closer to the beach and thought "why not?". The other half was ill that week though and there was one house that was great - close to beach, decent block and price etc. There was also an existing sale in place with a 48hr clause subject to finance so I had to move fast (within a week of thinking this suburb might be a good idea BTW). Put an unconditional offer on that day and it was accepted - couldn't even put a termite condition on because of the gazumping - had to trust their six month old condition report (it was mostly land value anyway...). The other half never saw the place before we bought it which we are now living in (quite happily by the way).:rolleyes:

Another couple of years later and I ask the wife to check out an IP I had seen on the web while I'm at work. She goes there, said it looks great so I send the offer through and it gets accepted - I did like it when I eventually got to see it. To top it off, the latest one we have bought neither of us have seen yet! :eek:

When I started out with my first place, I took some advice from my parents - after that it has been just me or with the wife, in varying degrees of inclusion in both directions. The ones where we have just trusted each other's judgement and gone with it have been our best but this may well not work for everybody! It certainly does for us though... It is a strategy of course that is not without its risks and is perhaps most suited to the rising market we were operating in at the time! :)
 
Thanks for all the forumates who shared their thought, I guess sometimes influence compound with circumstance and lead to a decision which is not the primary choice to where to buy the prop (especially PPOR)

One of my family friend recently bought a house in South Morang_3752 even though he lived (rented) in Hawthorn_3122 for many years but his wife was so convinced that a good size backyard is a must for two young kids (which is fair enough) now he travels to Lygon street (Carlton_3053) for work from S.Morang instead of Hawthorn.

KK
____________________________
Trust your hopes, not your fears.
 
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