Reply: 1
From: Les .
G'day CO,
Two-tier means "two-level" - and the term applies to the situation where some (very few, thankfully) developers or marketers put an extra high price on a property (the second level) then onsell it to unsuspecting buyers. The first level is, of course, "normal" price - or the price a similar property would fetch from a person who is aware of the area.
If you wonder HOW this happens, simply consider what your reaction would be if you live in a large city, then just happen to visit a country town. In this town, you might hear of a property that will sell for only $70k (and it's 4 bedroom on half an acre). What would your reaction be???
In that fictitious town, it is possible that a local would not pay more than $50k for it. But, to you, as a visitor, it sounds like a "real deal".
In both cases (country town, or Gold Coast - or ANYWHERE else) the best way to protect yourself is to enlist a separate, local valuer to provide you with a valuation - NOT the one the marketers provide for you. The $150 you spend might be CHEAP insurance. Or at least ask 2 or 3 other Real Estate agents just what kind of price you would pay for (say) a 3br house with dbl lockup, etc. and get an idea of "local" prices.
In my opinion, if a Rental Guarantee is on offer, beware !! (e.g. they guarantee you $250 per week - or $13k per year for two years, but charge you $40k extra on the purchase price) - who's winning ??
Regards,
Les