From: Apprentice Millionaire
Paul Zagoridis, in an excellent post, wrote: "Make money when you buy. Realise that cash when you sell."
That's something that I have heard many times, and something I believe in. But as a newbie, I still have to learn how to make sure I offer in the right bracket. My understanding is that if I make an offer and it is accepted immediately, I am offering too much. If my offer is rejected, then I am too low. If my offer is met by a counter offer, then I am in the right ball-park.
But how do the more experienced property investors pick their price?
One strategy I heard was: know what yield you want (assuming you are in a good growth area, of course), find out the going rental level in the area, and then work backwards to find your price.
Another one I heard was: just offer 10% (consistently) below the asking price.
I guess the basis would be to know the market like the back of your hand, and then you know where to place your offer for any particular IP, but I would be interested in learning how others determine their price.
Cheers
Apprentice Millionaire
(aka Jacques)
Paul Zagoridis, in an excellent post, wrote: "Make money when you buy. Realise that cash when you sell."
That's something that I have heard many times, and something I believe in. But as a newbie, I still have to learn how to make sure I offer in the right bracket. My understanding is that if I make an offer and it is accepted immediately, I am offering too much. If my offer is rejected, then I am too low. If my offer is met by a counter offer, then I am in the right ball-park.
But how do the more experienced property investors pick their price?
One strategy I heard was: know what yield you want (assuming you are in a good growth area, of course), find out the going rental level in the area, and then work backwards to find your price.
Another one I heard was: just offer 10% (consistently) below the asking price.
I guess the basis would be to know the market like the back of your hand, and then you know where to place your offer for any particular IP, but I would be interested in learning how others determine their price.
Cheers
Apprentice Millionaire
(aka Jacques)
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