Hey guys,
I'm so excited at the moment I got a call from my lawyer today saying that contracts for my property have been exchanged! I'm now the proud owner of my first property investment.
Its a studio apartment in the eastern suburbs of sydney and I purchased it for $115K. Theres a tenant in there at the moment paying $165 a week. The strata is quite expensive $850 a quarter which is probably why no one wants to touch it but I did a strata search myself and $500 is going into the sinking fund to fund for future repairs...
The property actually went up for auction. I was so embarresed the other properties on the market were worth millions of dollars. The first property got passed in for 1.1 million (it was a 3 bedroom house in bondi).
My property came up it was the second one and I waitied until it almost got passed in and I put a bid in for $100K. Obviously it didn't make the reserve and it got passed in.
The agent figured I didn't really to buy it and said to give him a call tomorrow. I mentioned that I'm interested and if I can get it for the right price I brought my cheque book with me and I can close the sale tonight if need be.
I tried to a stupid tactic pretended to call my parents for more money and offer $106K. The agent saw right through me and said don't bother. He called the owner and said I can get it for $120K I ended up paying $115K. Signed the contract right there and put on a 10% deposit gotta tell you my heart was beating so fast.
All in all I was very happy with the purchase I would have paid substantially more because
- I did a search on RPData and the owner bought the place originally for $138000 in 2001.
- I was prepared to pay a lot more than $115K.
- The vendor had to sell he has bought another place.
I'm so happy I finally got a place I'velooked for 4 months. One big thing I learnt is that number is very important. But more important is being able to spot a deal and sense when the vendor needs to sell and you can usually negociate in a strong position.
In hindsight I think I was very lucky. I was the only one at the auction with only 1 bid being put on. Thus when it got passed in I was in a strong negociatiating position (no other buy on the night so no dutch auction). Also the agent kept saying to vendor I had my cheque book and I could buy it that night if he wanted, I think this really emotionally effected the owner. In fact I put in a written offer of $115K 3 weeks prior to auction and it got rejected!
Thought I'd share my first experience
I feel so happy after months of reading and looking I found a place that satisfied my criteria.
One quick questions. On the night I signed a blank contract. My lawyer said today the auctioneer signed it on the night. Is this legal? I'm not too familiar with auctions....
Does the vendor usually sign beforehand or can the auctioneer sign for the vendor? Thanks!
Looking for my second place this weekend will prob go out west and get a house!
I'm so excited at the moment I got a call from my lawyer today saying that contracts for my property have been exchanged! I'm now the proud owner of my first property investment.
Its a studio apartment in the eastern suburbs of sydney and I purchased it for $115K. Theres a tenant in there at the moment paying $165 a week. The strata is quite expensive $850 a quarter which is probably why no one wants to touch it but I did a strata search myself and $500 is going into the sinking fund to fund for future repairs...
The property actually went up for auction. I was so embarresed the other properties on the market were worth millions of dollars. The first property got passed in for 1.1 million (it was a 3 bedroom house in bondi).
My property came up it was the second one and I waitied until it almost got passed in and I put a bid in for $100K. Obviously it didn't make the reserve and it got passed in.
The agent figured I didn't really to buy it and said to give him a call tomorrow. I mentioned that I'm interested and if I can get it for the right price I brought my cheque book with me and I can close the sale tonight if need be.
I tried to a stupid tactic pretended to call my parents for more money and offer $106K. The agent saw right through me and said don't bother. He called the owner and said I can get it for $120K I ended up paying $115K. Signed the contract right there and put on a 10% deposit gotta tell you my heart was beating so fast.
All in all I was very happy with the purchase I would have paid substantially more because
- I did a search on RPData and the owner bought the place originally for $138000 in 2001.
- I was prepared to pay a lot more than $115K.
- The vendor had to sell he has bought another place.
I'm so happy I finally got a place I'velooked for 4 months. One big thing I learnt is that number is very important. But more important is being able to spot a deal and sense when the vendor needs to sell and you can usually negociate in a strong position.
In hindsight I think I was very lucky. I was the only one at the auction with only 1 bid being put on. Thus when it got passed in I was in a strong negociatiating position (no other buy on the night so no dutch auction). Also the agent kept saying to vendor I had my cheque book and I could buy it that night if he wanted, I think this really emotionally effected the owner. In fact I put in a written offer of $115K 3 weeks prior to auction and it got rejected!
Thought I'd share my first experience
I feel so happy after months of reading and looking I found a place that satisfied my criteria.One quick questions. On the night I signed a blank contract. My lawyer said today the auctioneer signed it on the night. Is this legal? I'm not too familiar with auctions....
Does the vendor usually sign beforehand or can the auctioneer sign for the vendor? Thanks!
Looking for my second place this weekend will prob go out west and get a house!
