Hi, pls help. We have been the up to Brisbane to meet a Real Estate Agent that was recommended as we are ready for our first investment property. He has showed us a lovely three bedroom, Town house in Oxley that is managed. We have been told the price is $360,000 (also the bank valued it at this). On looking around on the net I see that some other properties in the area are around $310,000. I know this Townhouse that we are thinking of buying is brand new so therefore we can get the best out of the tax with the depreciation. The real estate agent recommended a guy to do our finance (which I am ok about) and also a Solicitor, who is charging $2200 fees!!! Seems expensive to me. Anyway what I am asking from you experienced investers is am I being charged inflated prices???? Or do the think the price is pretty fair. The Real estate guy gets his fees from the property developer and he showed us this $10K fee on some paperwork. As we are new to this we really do not want to be ripped off on our first property. Thanks for your help its much appreciated.
Oxley - Brisbane Townhouse $360,00 buy or not
- Thread starter Carolynn Trimme
- Start date
Firstly, you shouldn't buy a property $50k more than the average just to claim depreciation, it will increase your CGT later anyway..
Never engage a solicitor recommended by the re agent.. I just heard another horror story about someone who did this. Casually spoke to the neighbour about putting a pool in the backyard, neighbour said "don't you know 90% of your property is an overflow easement?". Guess who referred their solicitor/conveyancer?
I know you won't put a pool in, but you get the gist.. Your quote of $2200 is a total rip off as well.
Likewise with finance.. re agent will likely get a commission, and terms of finance probably won't suite you..
Let me guess, re agent said the bank valued the prop at $360k??
Never engage a solicitor recommended by the re agent.. I just heard another horror story about someone who did this. Casually spoke to the neighbour about putting a pool in the backyard, neighbour said "don't you know 90% of your property is an overflow easement?". Guess who referred their solicitor/conveyancer?
I know you won't put a pool in, but you get the gist.. Your quote of $2200 is a total rip off as well.
Likewise with finance.. re agent will likely get a commission, and terms of finance probably won't suite you..
Let me guess, re agent said the bank valued the prop at $360k??
what does your research tell you?
how do you know the "bank valued at this"?
2200 is expensive!
do you just buy for depreciation benefits?
how do you know the "bank valued at this"?
2200 is expensive!
do you just buy for depreciation benefits?
All sounds so simple, there are good and bad parts of Oxley,if your own D-D tells you that you are paying 50k
more for all these people to hold your hand,then why go ahead with the contract just offer them 50k less and see how they perform-just have 2 questions,where in Oxley is the managed T-H my bet is it's near the railway station,and what size is the T-H and how many are in the complex,btw have you signed a contract yet?imho ..willair..
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As said, run a mile.
At the very least, if you are determined on this property, engage an independent solicitor who will look after YOUR interests (and will charge MUCH less than $2,200), and obtain an independent valuation before you sign anything. The $400-500 or so this valuation will cost may save you from making a very expensive mistake.
Marg
At the very least, if you are determined on this property, engage an independent solicitor who will look after YOUR interests (and will charge MUCH less than $2,200), and obtain an independent valuation before you sign anything. The $400-500 or so this valuation will cost may save you from making a very expensive mistake.
Marg
...sigh...OK unknown territory for you. First alarm bell.
A recommendation from a friend can be good, IF your friend was not also ripped off and does not realise it yet (if in fact they were).
Managed by whom? Is there a rental guarantee also?
Second alarm bell. Have you seen the val. Who commissioned the val? Who is the valuer? Was the val for the purpose of getting a mortgage?
Third alarm bell. That's right
at least you are checking out some comparables. The median price for units in Oxley at present is $350K. This one might be worth $360K or it might not. Get your own valuer. Better still, do so much research and checking for yourself that you already know the value when you see it.Alarm bell #4. NEVER buy for tax reasons. This should be just icing on the cake not the cake itself.
Alarm bell #5 start putting on your running shoes.
That's because it IS expensive. It should be 1/2 that! Alarm bell #6 - please run
Yes
Not enough information to decide - all you have said is new townhouse in Oxley. Give me 5 comparable sales to support your purchase price.
OK so the vendor is a developer and pays the REA commission - pretty normal.
Your post makes me very uncomfortable and I buy a lot of property every week from all sorts of vendors and all sorts of REAs.
Hi thanks for getting back so fast. Nothing has been signed.. thank god. Also property is Oxley Chase, 130 Jutland Street, 3 bedroom, 3 bathroom (well one toilet, one with bath and shower and one shower). Very small garden, could not swing a cat in it thats for sure. 10 min walk to the Train Station. House was valued by the Bank ANZ (though I don't think they actually do it they contract someone to do it). The Finance guy arranged the value of the property and told me in an email, though this will be on the paperwork from the Bank I am thinking. We are only new to this and this will be our 1st Inventment if we go ahead but alarm bells are ringing me my ears. Also Agent said they will pay the rent after two weeks if it is not rented out until it is.
Dear, it just keeps getting better and better doesn't it?
Get your own valuer. Get your own solicitor. Get your own lender. If it still stacks up and you're comfortable, then OK.......maybe. I'd still be running though
Use your own suppliers- plenty of good brokers on this forum. Solicitors fees are steep- searches should be 3-500 and legals 7-800 max plus gst.
Where about in Oxley?
Just no. No.
Everything you have mentioned in this thread so far is extremely dodgy. This RE Agent is a fraud. He knows he's ripping you off and he sleeps at night. He's scum and you should tell him you have committed else where and there's absolutely no chance you will be buying that townhouse or anything from him.
Looking at where that is I wouldnt be surprised if it had flash flooding, which is prone to happen in that area of Oxley when they get lots of rain.
http://maps.google.com.au/maps?f=q&...6014,152.97653&spn=0.007076,0.013754&t=h&z=17
http://maps.google.com.au/maps?f=q&...6014,152.97653&spn=0.007076,0.013754&t=h&z=17
I dont know what to say as I think has all been said before me.
You could move round the corner about 2 kms and get into Graceville, Sherwood, etc without any rental guarantee.
Next thing we will hear that they organise the Depreciation schedule for you and also the 221 D Tax variation all for a 0.5% of the loan amount fee.
Oh and by the way the agent said the Vendor had another buyer so suggested we waive the "cooling off" period.
Bargain !!!!!
You could move round the corner about 2 kms and get into Graceville, Sherwood, etc without any rental guarantee.
Next thing we will hear that they organise the Depreciation schedule for you and also the 221 D Tax variation all for a 0.5% of the loan amount fee.
Oh and by the way the agent said the Vendor had another buyer so suggested we waive the "cooling off" period.
Bargain !!!!!
Thats what I was thinking.
Scum-bag RE Agent.....geeez, what a surprise.
Very, very few decent agents around.....I don't know what it is, but the nature of selling something so close to the heart (such a home), brings out the worst in people....been like this since the dawn of time.
Anyway, $2200 is extremely expensive....you can get conveyancing for 75% less.
He'll pay your rent for two weeks? If the property is so great, it should stand on its own feet and let immediately. Moreover, why would he want to lose his own money? It stinks and he's doing whatever he can to sell you this thing.
$10K cashy from the Developer too?
Oh man, name and shame this Agent please.
Very, very few decent agents around.....I don't know what it is, but the nature of selling something so close to the heart (such a home), brings out the worst in people....been like this since the dawn of time.
Anyway, $2200 is extremely expensive....you can get conveyancing for 75% less.
He'll pay your rent for two weeks? If the property is so great, it should stand on its own feet and let immediately. Moreover, why would he want to lose his own money? It stinks and he's doing whatever he can to sell you this thing.
$10K cashy from the Developer too?
Oh man, name and shame this Agent please.
