Offer on property
- Thread starter july
- Start date
G'Day July,
in answer to your questions,
how long ago?...........February, this year.
Am I sorry that i paid full price?............I am never sorry about buying any property, I do my homework, work out how much I am prepared to pay, try and negotiate the best possible price and/or terms and then do the deal, if it suits me. I don't suffer from any buyers lament, I never dwell on what something has cost me, I move on. For a property to get my interest initially, there must be something about it that has created the desire to own it.
In this particular case the gross rental return at the time of purchasing was $17,400, the current gross rental return is $21,500, in rough figures around a 25% increase.
The cost to get the rental increase, nothing!!!!, the property was owned by the previous owner for over 20 years and he had a negligent property manager that hadn't increased rentals in line with current market conditions. In actual fact the rents hadn't been increased at this property for over 3 years, ludicrous!
What made me want the property so much?.............I think I've already answered that question.
By the way, this property had been on the market for about 2 months before I started negotiating on it.
regards and good luck
in answer to your questions,
how long ago?...........February, this year.
Am I sorry that i paid full price?............I am never sorry about buying any property, I do my homework, work out how much I am prepared to pay, try and negotiate the best possible price and/or terms and then do the deal, if it suits me. I don't suffer from any buyers lament, I never dwell on what something has cost me, I move on. For a property to get my interest initially, there must be something about it that has created the desire to own it.
In this particular case the gross rental return at the time of purchasing was $17,400, the current gross rental return is $21,500, in rough figures around a 25% increase.
The cost to get the rental increase, nothing!!!!, the property was owned by the previous owner for over 20 years and he had a negligent property manager that hadn't increased rentals in line with current market conditions. In actual fact the rents hadn't been increased at this property for over 3 years, ludicrous!
What made me want the property so much?.............I think I've already answered that question.
By the way, this property had been on the market for about 2 months before I started negotiating on it.
regards and good luck
Do you want the property?
$8000 is only $10/week
If its not worth an extra $5/week after tax to you then don't offer any more. Tell the agent the price you offer will drop $2k a month. If you aren't worried about ego and it is worth $5/week to you then pay the extra. I personally wouldn't get too worried about 1.5 trips over the Harbour Bridge per week. You could pay the list price, and drive over the Anzac bridge once a week, and still be as well off, with an extra property!
$8000 is only $10/week
If its not worth an extra $5/week after tax to you then don't offer any more. Tell the agent the price you offer will drop $2k a month. If you aren't worried about ego and it is worth $5/week to you then pay the extra. I personally wouldn't get too worried about 1.5 trips over the Harbour Bridge per week. You could pay the list price, and drive over the Anzac bridge once a week, and still be as well off, with an extra property!
Hi
I wanted to thank everyone for replying.
I have purchased that property and yes I did pay what the vendor was asking after using many of the suggested tactics including walking away.
The thing is, as Jakk said, I really wanted this property.
I found out that the vendor had bought this property in 2001 (when prices were already inflated in this area), renovated, lived in it for a few months and then rented it out. I spoke to someone (who knew the vendors personally) and found out that the vendors actually wanted 15,000 more than what was it was listed for so they felt they had already taken a loss and actually preferred to keep the property than give it away for anything less than their asking price.
As it is unique in that it is a shop front residence where someone can run their business from home or just use it primarily as their home I decided not to let a short term loss prevent me from obtaining a excellent long term property investment. The location is great, close to transport, shops and very close to the cbd.
Thankyou
I wanted to thank everyone for replying.
I have purchased that property and yes I did pay what the vendor was asking after using many of the suggested tactics including walking away.
The thing is, as Jakk said, I really wanted this property.
I found out that the vendor had bought this property in 2001 (when prices were already inflated in this area), renovated, lived in it for a few months and then rented it out. I spoke to someone (who knew the vendors personally) and found out that the vendors actually wanted 15,000 more than what was it was listed for so they felt they had already taken a loss and actually preferred to keep the property than give it away for anything less than their asking price.
As it is unique in that it is a shop front residence where someone can run their business from home or just use it primarily as their home I decided not to let a short term loss prevent me from obtaining a excellent long term property investment. The location is great, close to transport, shops and very close to the cbd.
Thankyou
G'Day July,
and CONGRATULATIONS............
You are the fortunate one, how many people when purchasing a property actually get exactly what they want........but in your case, you actually have.
What short term loss .....$8,000???
Let's assume for a minute that someone else had jumped in and paid the price asked and you had missed out on buying this property..............how long would it have taken you to find another like it?
A long time or maybe never, not in that location maybe.
July, in 1,2,5 or 10 years, who knows, people will be telling you that you stole it............and when you tell them that at the time you thought you paid $8,000 too much, you'll all have a good laugh.
The property is yours now, look to the future, the past is gone, would you now sell it to me or someone else for $8,000 more.....I don't think so, what is the property now worth to you?
possibly quite a lot more than you paid for it in reality.
Once again, Congratulations and well done on trusting your own instincts and securing what you wanted........isn't that what really matters?
By the way, what use do you have planned for the property?
regards
and CONGRATULATIONS............
You are the fortunate one, how many people when purchasing a property actually get exactly what they want........but in your case, you actually have.
What short term loss .....$8,000???
Let's assume for a minute that someone else had jumped in and paid the price asked and you had missed out on buying this property..............how long would it have taken you to find another like it?
A long time or maybe never, not in that location maybe.
July, in 1,2,5 or 10 years, who knows, people will be telling you that you stole it............and when you tell them that at the time you thought you paid $8,000 too much, you'll all have a good laugh.
The property is yours now, look to the future, the past is gone, would you now sell it to me or someone else for $8,000 more.....I don't think so, what is the property now worth to you?
possibly quite a lot more than you paid for it in reality.
Once again, Congratulations and well done on trusting your own instincts and securing what you wanted........isn't that what really matters?
By the way, what use do you have planned for the property?
regards
Just over 2 years ago I was selling a property in Brisbane at Wavell Hts. It was in a street which offered clear city views, was elevated, 607m2 and needed plenty of renovations. Offers came in at 150k and 160k. I may have had one at 165k, can't remember. The owner stuck firm, wouldn't negotiate at all, he was under no pressure to, if he didn't sell he knew it was in a great position anyway. I tried to tell every buyer what a great buy it was, and yes, they may even pay $5-10,000 above its market value, but the rateable land value went up the year before by $15,000 and was highly likely to do it again the next year. Anyway, no-one bought it.
Now the same property will sell between $280,000 and $320,000, maybe more. The point is, what would it matter now if they had paid what the owner wanted. I know hindsight is a wonderful thing but not everytime does it have to be an outright bargain of the century. When I bought my current home, we paid a good price considering it has major white ant damage in the roof. I wouldn't swap it for the world (so to speak) considering I have 2 boys and we back onto a large park. I can fix the damage but the position is priceless to us. Sometimes you just know a property is right for you.
Congrats on your purchase, sounds like a great buy.
www.nundahrealestate.com.au
Now the same property will sell between $280,000 and $320,000, maybe more. The point is, what would it matter now if they had paid what the owner wanted. I know hindsight is a wonderful thing but not everytime does it have to be an outright bargain of the century. When I bought my current home, we paid a good price considering it has major white ant damage in the roof. I wouldn't swap it for the world (so to speak) considering I have 2 boys and we back onto a large park. I can fix the damage but the position is priceless to us. Sometimes you just know a property is right for you.
Congrats on your purchase, sounds like a great buy.
www.nundahrealestate.com.au
Hi Kevin,
Interesting story. Just wondering about the "scarcity" value of that property in Wavell Heights? I agree that elevated position with city views is attractive. How many of those come on the market? Occasionally? regularly? If they rarely come on the market then scarcity value would be a factor to buy. Two years ago many QLD areas were starting to boom so buyers could be choosey and patient. If I am right about the scarcity factor then that should have been emphasised more than potential growth. As I said, many areas had potential for strong growth 2 years ago so that argument wouldn't have swayed buyers as much as scarcity value, I would have thought.
A point about your own property: I heard it said from other investors (not families with kids) that properties backing on to large parks are undesirable because of the potential for vandalism to the property. Have you heard that?
Regards, Mike
Interesting story. Just wondering about the "scarcity" value of that property in Wavell Heights? I agree that elevated position with city views is attractive. How many of those come on the market? Occasionally? regularly? If they rarely come on the market then scarcity value would be a factor to buy. Two years ago many QLD areas were starting to boom so buyers could be choosey and patient. If I am right about the scarcity factor then that should have been emphasised more than potential growth. As I said, many areas had potential for strong growth 2 years ago so that argument wouldn't have swayed buyers as much as scarcity value, I would have thought.
A point about your own property: I heard it said from other investors (not families with kids) that properties backing on to large parks are undesirable because of the potential for vandalism to the property. Have you heard that?
Regards, Mike
Yes Mike, a property with potential city views does have its scarcity value, which is why I considered that paying a little too much at that time as worthy of the risk. The market was in its infancy of the boom but no-one predicted just how much it would rise.
To your second point, yes we had heard about living close to parks as being security risk, however just like the building matter, these things can be fixed. Our property is fenced, we have a dog (a golden retriever which is about as vicious as the wiggles on a bad day) and we plan to install an alarm system. The positives far outweigh the negatives. Our position offers so much to my boys.
Our plan is to raise the house, we have about 150k equity at the moment, build in some rooms under and take in a couple of students. Our equity will remain, someone else will pay the mortgage and we will continue to invest in more property. I see others doing it so figured why not us. If there's money to be made you can count me in.
Kev
www.nundahrealestate.com.au
To your second point, yes we had heard about living close to parks as being security risk, however just like the building matter, these things can be fixed. Our property is fenced, we have a dog (a golden retriever which is about as vicious as the wiggles on a bad day) and we plan to install an alarm system. The positives far outweigh the negatives. Our position offers so much to my boys.
Our plan is to raise the house, we have about 150k equity at the moment, build in some rooms under and take in a couple of students. Our equity will remain, someone else will pay the mortgage and we will continue to invest in more property. I see others doing it so figured why not us. If there's money to be made you can count me in.
Kev
www.nundahrealestate.com.au
Just having a browse of some of the older 5 star threads.
Would love 1 or 100 of those properties in Wavell Heights at the moment
Hi Andrew, it's interesting looking back isn't it. That property would be worth Plenty now!! I also still live in the same house, backing onto the park. We did the renovation, a little different than I described, but it certainly added a lot of value and we enjoy it here.
Hope all is well.
Cheers Kev
Hope all is well.
Cheers Kev
BTW - Never once in 11 years living in our property have we had an issue from backing onto the park. We love that facet of our home. At the moment on a Saturday morning there is a kids game of cricket being played and through winter they play soccer. It's great seeing people out enjoying themselves and it adds to the atmosphere.
I haven't heard of any robberies or any other problems in the street either.
Kev
I haven't heard of any robberies or any other problems in the street either.
Kev
I have never be able to buy any property at a low/cheap price (obviously my bargaining skill is not great !) I agree if buying for the long term then a few thous more or less should not be the decision making point.
Funny though, the two of our IPs that, when we bought them, were not "sought after" sitting on the market for ages, ended up very profitable ones.
Funny though, the two of our IPs that, when we bought them, were not "sought after" sitting on the market for ages, ended up very profitable ones.
