Hi All,
I am an avid long time reader and first time poster. I have browsed these forums over the past year and am very greatful to the Somersoft community as I have learnt lots from the masses of wisdom among you all!
This is my first post, previously to be honest I have felt too much of a novice with perhaps not enough experience to contribute, but am now hoping some of you would be kind enough to offer a newbie some much needed advice
Here is a brief background....I am 27 years old, and have been with my partner for 9 years. He is the same age as I, and had bought his first investment property at the age of 18. When we were 21 we used the equity he gained from his first investment property to purchase another investment property (this ones ours). We have been very fortunate to have his older brother, who has been in property investing and real estate for awhile, to have given us some gentle pressure / encouragement to take these steps.
We are now in a position where we want to buy our first PPOR. Basically my partner purchased Investment property #1 for $105,000, it is now worth $260,000. We purchased Investment property #2 for $250,000, it is now worth $380- 400,000. We plan to use all of our redraw, equity, plus cash savings, to put towards our PPOR, and by doing so we still allow more than enough rent in both to cover interest only repayments for both investment properties.
So we have approx $250,000 cash/redraw to put towards a house worth 550-650 (depending if it needs work or not). We have been looking around Pascoe Vale, Pascoe Vale South, and Coburg, as I grew up here, and both investment properties are in Essendon. Unfortunately for us, these areas have had an extremely tough market, that just keeps getting tougher.
After 8 months of countless failed auctions etc, we have found a house up for private sale...but with no price range. Fair enough. After the inspection we notify the agent that we want to make an offer. She says section 32 is not yet available, but what kind of offer are we looking at making. She said vendors are hesitant to sell before they buy, so I informed her our offer will include a flexible settlement period of anytime within 6 months of signing of contracts, to be advised by vendors.
She asks me to come in today at 12pm to sumbit written offer, as Section 32 has now been signed. We researched comparable sales and made what we think is a fair and reasonable offer - $620,00. Unconditional, with a $100,000 deposit, and the flexible settlement period as discussed. She asked me to sign one of thier standard offer forms they use, which i said was fine.
Now here is my predicament - I told her our offer was valid until 8pm tonight, or 9am tomorrow morning. i was advised to put this time limit on there as there is another OFI for the same property at 10:30am tomorrow, and I didnt want her to use my offer to negotiate/ bargain with other buyers. She got agitated and said that was not enough time, and the vendors would need to consider it over the weekend and get back to me next week. When I asked why this is the case she said because she was too busy today to make time to get in touch with them, and that their standard practice gives 3 days for the vendors normally to consider offers.
I told her we wouldnt be here for the long weekend anyway, so I would just wait until Wednesday next week, and come back and put a written offer in then. I didnt want to sign anything feeling pressured and unsure as to whether her reasons were legitimate....or was she trying to bluff me?
So, my question to you more experienced investors / buyers - was I being unreasonable by putting a 12-24 hour time limit on the offer? Is it standard practice to allow 3 days? I dont want to get played or taken advatage of, but I dont want to be an unreasonable buyer as well IFYKWIM?
Phew, thanks for reading if you got this far! Any advice would be warmly welcomed
Thanks muchly, Mez
I am an avid long time reader and first time poster. I have browsed these forums over the past year and am very greatful to the Somersoft community as I have learnt lots from the masses of wisdom among you all!
This is my first post, previously to be honest I have felt too much of a novice with perhaps not enough experience to contribute, but am now hoping some of you would be kind enough to offer a newbie some much needed advice
Here is a brief background....I am 27 years old, and have been with my partner for 9 years. He is the same age as I, and had bought his first investment property at the age of 18. When we were 21 we used the equity he gained from his first investment property to purchase another investment property (this ones ours). We have been very fortunate to have his older brother, who has been in property investing and real estate for awhile, to have given us some gentle pressure / encouragement to take these steps.
We are now in a position where we want to buy our first PPOR. Basically my partner purchased Investment property #1 for $105,000, it is now worth $260,000. We purchased Investment property #2 for $250,000, it is now worth $380- 400,000. We plan to use all of our redraw, equity, plus cash savings, to put towards our PPOR, and by doing so we still allow more than enough rent in both to cover interest only repayments for both investment properties.
So we have approx $250,000 cash/redraw to put towards a house worth 550-650 (depending if it needs work or not). We have been looking around Pascoe Vale, Pascoe Vale South, and Coburg, as I grew up here, and both investment properties are in Essendon. Unfortunately for us, these areas have had an extremely tough market, that just keeps getting tougher.
After 8 months of countless failed auctions etc, we have found a house up for private sale...but with no price range. Fair enough. After the inspection we notify the agent that we want to make an offer. She says section 32 is not yet available, but what kind of offer are we looking at making. She said vendors are hesitant to sell before they buy, so I informed her our offer will include a flexible settlement period of anytime within 6 months of signing of contracts, to be advised by vendors.
She asks me to come in today at 12pm to sumbit written offer, as Section 32 has now been signed. We researched comparable sales and made what we think is a fair and reasonable offer - $620,00. Unconditional, with a $100,000 deposit, and the flexible settlement period as discussed. She asked me to sign one of thier standard offer forms they use, which i said was fine.
Now here is my predicament - I told her our offer was valid until 8pm tonight, or 9am tomorrow morning. i was advised to put this time limit on there as there is another OFI for the same property at 10:30am tomorrow, and I didnt want her to use my offer to negotiate/ bargain with other buyers. She got agitated and said that was not enough time, and the vendors would need to consider it over the weekend and get back to me next week. When I asked why this is the case she said because she was too busy today to make time to get in touch with them, and that their standard practice gives 3 days for the vendors normally to consider offers.
I told her we wouldnt be here for the long weekend anyway, so I would just wait until Wednesday next week, and come back and put a written offer in then. I didnt want to sign anything feeling pressured and unsure as to whether her reasons were legitimate....or was she trying to bluff me?
So, my question to you more experienced investors / buyers - was I being unreasonable by putting a 12-24 hour time limit on the offer? Is it standard practice to allow 3 days? I dont want to get played or taken advatage of, but I dont want to be an unreasonable buyer as well IFYKWIM?
Phew, thanks for reading if you got this far! Any advice would be warmly welcomed
Thanks muchly, Mez