net buyer - I love property
Replying to Toni & I Love Property........
I am an investor and let me qualify my remarks - I'm in it to make money. As a working class lad who has made good, I'm also in it to lift up neighbourhoods in the process of making a dollar. Having grown up in a dodgy neighborhood myself, I know how people can be affected by their environment. Lifting up neighbourhoods is something that investors can do easily enough, it is all about money, good government and common sense. Any investor who is not interested in his fellow man doesn't rate highly in my dictionary.
Just one line in each and every online advert can do wonders in attracting new money, the lifeblood of any up and coming area: "this house is close to a new highway, proposed marina, university campus"\ A single line like the above would have induced my cardiologist friend to invest his $5m kitty in the area.
But *moan, groan* agents don't seem to care. Most are glib and generally don't give a damn. Totally blase, they think they know all there is to know about land and property. Mentioning the 3 growth catalysts for the local area is easily done - it needn't take more than a single line. But they couldn't be bothered.
I own close to 100 properties around the country, mainly in cities. Trust me, it can be very frustrating dealing with 99% of real estate agents. And no matter where you go, even overseas, the attitude is much the same. The mindset of the salesman or saleswoman is almost never long-term. It is about making their commission, pure and simple. Nothing more. It may not be their fault, all human behavior is governed by brain structure and chemistry. Not all people are the same. It'd be boring if we were all similar.
About agents. Of course not everyone is the same. But its their frequent glibness and pomposity that gets my goat. And their refusal to accept responsibility when things go wrong. I'm a soft spoken fellow. After being pushed around a few too many times by arrogant, bullying or pushy agents, I am ashamed to say *confession time, helped by red wine* that one of my assistants, with my connivance, once used RP data to check up on a few of the "know it all" types. Surely we could learn from them if we only knew how wise they were?
Before I say more, it is an offence to do this nowdays. So don't try this at home.
What we did was totally wrong, highly improper, totally inexcusable. That I am sharing this information with you will no doubt lower me in your esteem. But, fortified on red wine, share I must for the sake of our collective education! I wish someone had shared what I now know with me many years ago. But alas, those who know do not usually speak. And those who speak usually do not know !
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Surprise surprise... our sneaky research revealed that the loudest, rudest, most arrogant agents often did not own any property. The suits and flashy hire purchase cars, not to mention the close-minded know-it-all attitude, were all they were worth. Perhaps they were divorced and lost it, you may ask? Umm not so!. Most of the few agents we checked out were over 40 and had never ever bothered to buy a house. And, in my limited sample space, I never met an agent with more than one or two investment properties.
Folks, what i did was totally rude and *cringe* a potential violation of the (Cwth) Privacy Act 1988. That I/we did such a dastardly thing before it became an offence did not make it right. I am very contrite. Be assured that I did not check up on the humble, honest agents - I respect people who respect me.
Why am I mentioning this here? Folks, don't EVER think agents know more than you or I. Do your own work, listen to nobody, and dont ever be afraid to put silly bugger agents in their place. Yes, from time to time I do meet nice agents.But nice does not necessarily mean well-informed. As I say, if they really knew, they'd be buyers themselves.
Someone asked if I am selling in Frankston. Well, in dollar terms I am a net buyer. And I will be doing the same for quite a few more years at the very least. My usual preference is for houses on larger blocks, the sort of things with eventual development potential. Unfortunately I can never resist a bargain and in addition to development sized blocks, I have secured (very cheaply) a number of eminently rentable houses on smaller blocks. Nothing wrong with these houses, all solid brick and tenanted, all slightly less than 600sqm. But unless I can buy out the neighbors, these are too small for eventual development so they may be more suited for owner occupiers. So to answer your question, IF I can find more houses on larger, development sized blocks, I may consider selling some of the smaller ones. But I'm not going to dump anything for anything less than the median price. And if I cannot find larger blocks to buy, I will hang on to what I have got regardless of size. Given that the median price keeps going up and up I am not complaining.
OK back to agents.....if you own property in the area and your managing agent's online sales advertisements do not mention the 3 local catalysts (new highway, proposed marina, university) ...fire your agent immediately. By default or ignorance, your agent is effectively directing potential investors to other areas. He is putting a lid on potential gain in the worth of your property. Don't put up with it. Tell them the sad tale of my friend, the Cardiologist and the $5m that could have been invested locally but wasn't.
Keep checking your agents advertisements on domain and realestate.com.au. Each and every advert should make mention of these 3 price-shifting catalysts. Dare i repeat the same mantra: new highway, proposed marina, world-class university.
OK enough red wine for tonight. Does anyone else have any confessions?
Happy Investing all......