My house hunting experience

It amazing the differences between the states on building issues, isn't it?

Peterw said:
They do so, so that they cannot be occupied by other than family members.
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They have a similar stance in WA also. At least in this respect I think NSW has it right.

If you happen to own a property with a granny flat or bungalow or sep. accom, why should you only be allowed to house family members there? What if granny dies? Are you supposed to leave it vacant? Whose responsibility is it to check that it is only a family member there? Do people have to present a birth certificate to a council officer? It's nuts!
 
Prop, I hear where you are coming from. In essence here, granny flats were originally agreed to, in standard residential zoinings, ie not multiple dwelling zonings, ie one lot one dwelling situation, because of elderly parents, never for additional income producing desires. People then started to use them for 2 family units living together, or teenage children etc. I do appreciate that investors are looking for ways to increase return, but as I read it, they are doing so out of sinc with the original intention of the approvals. There are creative ways of enjoying the additional income, as many have found, but we cannot advise them that way.
 
menty said:
I just realised I don't have many !
- able to be sub
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That's not a bad thing, it gives you more flexibility. You haven't mentioned any desirable suburbs, which is almost the most important consideration :D

If you intend to use it as an IP, then you'll probably need to add more qualification. What I mean is, if the kitchen needs replacing, how much will it add in rent, and this will determine what you can afford to spend renovating it. Same for the bathroom, and any other non-cosmetic changes. Once you understand this, you're in a happy place.

For the record, when I bought my first place it was the second place I put an offer in. First was accepted but too much asbestos and not enough money to fix up, was a cost I hadn't considered and seller wasn't budging. For the record, the first offer was on the 40th house I had been through, and the second was after 230+ houses over a year period. That second house made $100k CG in 2.5 years with $20k of renos because I understood the above (unfortunately hasn't moved too much since then).
 
Latest update.

I now have approval from the bank for a 400K loan (thanks Michael!)

Yesterday, me and the vendor had agreed on verbally to a price for a property. Today I organised the building and pest inspection and visited my solicitor.

Only minor issues with this house:
- Need 2 whirlybirds for ventilation
- Call in a carpenter to add some vertical struts in the roof to support it as it is quite heavy (terracota tiles).

Back to the point.

After all this, I went to the RA to place a non refundable 0.25% holding deposit. Gave the agent the cash and signed the contract.

Now hear this, the RA went to the vendors to seal their end of the deal, and the vendors wanted MORE. These vendors are a nightmare to deal with.

The RA has now suggested to me that she will give 2K of her commission towards the sellers. She will get back to me tomorrow.

Very interesting.

04/11 Update: Vendor has now accepted and signed the contract! off to the solicitors now
 
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Anyone ever bought a property and have second thoughts after?
The cooling off period of my property ends on Friday after which I need to pay a 9.75 percent deposit.

For what it's worth, the property is in sefton, Link here
http://www.raineandhorne.com.au/properties/180274

Not sure if it's just first time jitters or what not. Something's niggling at the back of my head to perhaps pull out. Iv had the b and p done and it's all clear. The solicitor has okayed the contract.

I guess it might not be the best investment decision?

The best thing this place has going for it is it's huge land of 703m and proximity to the station and sefton high school. One must bear in mind that although it does have a train station the train does not come often (once every 30mins? ) and it takes about 40 to 50 minutes to train it into the city.

Potential rent is about 470 plus a week due to this. However, it is an older house (albeit with 4 bedrooms- ok 3.5).

Purchase price was 513k, however now thinking back, it may have been a bit much considering the median is 475k or so. Looking at sales history for the suburb, there are not many properties over 500k. putting all this into account, it does not seem like the best yield. In terms of price per square meters, it is however, decent.

Your thoughts would be appreciated as to whether this was a good buy or if I should lose the holding deposit and look elsewhere.
 
Everyone has different investment strategies... But purely looking at yield, only 4.7%, I hope that capital gain in the area is good and if you can subdivide etc.

Saying it bluntly the property does not meet my investment criteria, low yield and price is over medium in the area. But I do not know the area at all and I do not know capital gain prospects, subdivision potential, potential to add granny flat etc.

May I ask, why you are in hurry? The market will stay flat a couple more months...
 
Buyer's remorse is pretty common. But if you've made a decision and you have done all the research, don't let doubts sidetrack you.
 
The original analysis for purchasing the property was done as follows:

- looked at the prices of weatherboard houses within the area, and worked out the median price per m2 was about $800-900/m2. This works out to be about $720-750/m2, which makes it comparatively cheaper. Bear in mind though, is it pointless to have such a large amount of land and do nothing but sit on it?
- the property was close to the station and a good school so in effect should demand a premium. There is strong rental demand in the area. Although the yield may not be as good as some other suburbs, it will always be rentable
- large land able to build grannyflat/ subdivide later on (but seeing as though my targeted tenants are likely to be families, I'm not so sure this is a good idea). I cannot build a duplex as the frontage is short by 1 metre. If I subdivide while it is a PPOR and sell within 6 years I have to pay CGT
- this was not one of my original needs, but the property is slightly renovated. It was used as a PPOR for 14 years and has a homely feel to it. Compared to other rental properties in the area it is in much better condition. Also, at a recent auction, a rear (11year old) battleaxe house sold for 480-500K a few streets away. http://www.realestate.com.au/property-house-nsw-sefton-108110821

Now to my doubts:
- Cityrail is soon finishing their clearways project, and I fear the station will be 'made redundant'.
- There are not many properties in the area that have sold for over 500K (which is fair, given the median land is about 550m2)
- Council does not have any development plans in the near future.
- essentially I am relying on really one factor - the school, and the fact that there is a strong desire to get into it by many parents.

What sort of plans can I look at in the future in terms of development or sale? What are the rough costs?

In the back of my head, as a first home buyer, I know that the purchase price is not too bad as I have a 7K grant and also 3K from my FHSA (unfortunate that it has been eaten up by stamp duty). Essentially, this purchase will cost me about 508K after all expenses, repairs and fees. (Although I have been advised not to take this into account when working out costs)
 
1 day till cooling off period ends!
Just got the 9.75% deposit cheque in the mail :)

Unfortunately loan has only been approved for $355500 @ 6.9% variable, P+I. After 9 months we will most likely do an equity release or LOC.

Cannot wait
 
menty said:
Anyone ever bought a property and have second thoughts after?
Click to expand...

Often. If for some reason you don't feel that way, a better, cheaper property will pop up the day after your cooling off lapses, just to make you feel bad. :D

The Y-man

p.s. well there - it happened as I was typing....:eek:
 
Well, there has been a bid for that property for 530k and the vendor won't accept yet.
As an aside, how much more would one pay for double brick compared to cladding? (exterior only)
 
Good buyer agent in Brisbane

Hi All,

Would anyone be able to recommend a good buyer agent for Brisbane please?

My friends are professional couple who are on higher tax bracket (38%) , looking to buy an investment property <500k in Brisbane within 10kms to the CBD , with high CG potential, easy to rent, low maintenance.

Thank you,

Anne
 
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