It was at the end of 2016 and the property market was on the rise. I was on the process to search the properties. Originally, I was search on few good middle suburbs. Such as BH, BH S, N.
I remembers that there were three properties which I were serious.
We were interested in three properties and their positive points and negative points.
1, One old house with 750 seq land and near BH. It has some twisters. It had a big land, and you can renovate all three bedrooms inside. It will hard build and subdivision due to back land was quite small. I did research and I didn’t go ahead at the end. Because the back of this property was empty big land. I found that they will build high rise apartments behind this property. It means that you will lose all your privacy.
2, Second property was in N suburb, and it was very good location and walked to library and shop and shopping center. The property was in very beautiful street and full of tall trees. The land was 650 seq and only two bedrooms. But the back had just tight space to subdivision. I went to auction, and it was too far from my reserve price. Nearly $150,000 above. I can see that the home buyers really want it and maybe build new home in future. I am an investor and the more I paid, and yield will very low. Based on the price, the property will largely negative gearing and rental income will not cover interest rate. So, I didn’t buy this one. From 2017-2019, the price of properties come down a lot.
3, Third property was in N suburb, it was three bedrooms. It needs a lot of work and come the conditions which you can live in. The best part of this property was at corner of the street. So, it means that it will make easy to build second dwelling. We went to auction site and it went over my limit again. Consider the loan and negative gearing and rent. I chose to keep search cheaper suburb.
I decided to go further suburb for three reasons.
1, I can find better and big land with twister.
2, I can find better quality house with renovation potential.
3, I can develop the property and it will probably my last development. Because I choose to change asset invest and focus on share and index.
My fourth property positive points and lessons.
S found one property pass in auction and it was 1000 seq with two bedrooms. There had some positive points and negative points.
1, Positive points was the land is very big and there had plenty room at back. The 2 bedroom was very at front.
2, It located in very quiet court and no open road. It means that it will not too many people went around or drive. For living and renting, it will very quiet.
3, The house is quite unique, the backyard joined with national park. It means that you can walk with a pet and had morning walk to national park.
4, The house is near local shopping center and there had a lot of small shops just walk distance with this house. There had a biggest shopping center and train station just 5 minutes driving from this suburb.
5, The suburb had a lot of private and public school around H. It gave the family or renter good opportunities to choose.
Negative points
1, The house only had two bedrooms and one bathroom, it limited for the family renting or living.
2, The house is quite old for bathroom and the kitchen, it needs renovation and painting.
My private sales offer experience
The real estate agent said the me that they have three private bidders. I didn’t know whether it is true or not. I knew that there was one bidder left. Only me and another private bidder left.
I offer *50,000. Another private bidder seemed to offer more than me $10000. I used two strategies to win private bidder. I did add $5530 as last private bid.
1, You need very strong for emotion and not touch with any property you buy. Because the rea estate agent will use Fear to Miss psychology to push you add more price. I remembered that the agent’s sales name is Bruce and he kept going to ask me same questions repeatedly.
“If you miss the property and are you feel regret?”
“If another bidder wins and got the property, are you right?”
“Can you add more money, we nearly reach the goal?”
2, The agent will keep going to ring you and play psychology games and you need train yourself to walk away to the deal any time. But the same time, you also need prepared to add the amount which you can afford and win the games.
3,I used two strategies to win at last.
I add very detailed last offer figure, such as $5530. It is not around number $6000. It is very detailed and showed the vendor that I am serious.
4, Short settlement
I had my finance approve and don’t need subject to finance and cooling off time. It was a biggest tick for vendor. Because the owner of this house were three brothers and they waited for separated the money. Other bidder gave high money with low deposit and subject to finance. It was all about uncertain and risks.
5, 10% deposit for the house. The other bidders give 5% deposit and long-term settlement with high price.
At the end, the vendor chose to low risks and uncertain and got slightly low offer.
My renovation of fourth property
1, I painted all kitchen and change appliance.
2, I polished all timber floor.
3, I added bedroom wardrobes
4, I extended one bedroom with bathroom and toilet.
5, I build one carport.
I was suggested this website by my cousin. I am not sure whether this
post is written by him as nobody else know such detailed about my problem.
You are incredible! Thanks!
Thank you very much for your reading my blog. It is my real property and I don’t think that it is written by him.