WA Post a Bargain - Perth 2018

Discussion in 'Property Analysis' started by Spiderman, 2nd Jan, 2018.

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  1. Big Daddy

    Big Daddy Well-Known Member

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    They have one buyer =you. You have many sellers = everything listed on realestate.com.au.

    If I was you then I would start going along to the same agents other home opens to show you have moved on. Then when they come back to you, don't go above 710k.
     
  2. property world

    property world Well-Known Member

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    I like this and never really thought of it

    Ill use it

    Edit: However does the REA care which 750k property they sell, only that they care they sell one of them
     
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  3. Rex

    Rex Well-Known Member

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    Key that you don't seem particularly interested in the agent's second property when you view it then I suppose. So the agent knows you're looking at other properties, but you're probably not going to buy another one of his/hers.
     
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  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    How did you go? Did you stick to your guns or decide to raise it to what you thought was still good value?
     
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  5. FrivolousPanda

    FrivolousPanda Well-Known Member

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    You could expand and go to other properties of agents from the same office. When you speak to them mention your experience of this property as what you are looking for.
     
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  6. Mr. Wolf

    Mr. Wolf Member

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  7. Damo93

    Damo93 Well-Known Member

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    So long story short $710k wasnt going to cut it (prior to final bidding we were happy to go to $750k - most full sized blocks go for $1000 per sqm in Applecross School Zone at the very least -basically land value)
    After the bidding outcome we decided $730k was probably achievable. After some back and forths and making it clear I knew there was noone else we finally arrived at $730k and the seller accepted!
    Our broker couldn’t believe we bought 809sqm in Booragoon for that price and house will enjoy a $40k reno to spruce it up for myself and 3 renters. Already have reliable friends interested which is great.
    This has been 3 years of research on and off the ground and definitely couldn’t have done it with the advice from many members here so I appreciate you all and want to thank you for helping us achieve our goal.
    Plenty of options with re-zoning yet to occur but I think a reno to make liveable and rentable for now then way up the options of a full reno or demo/build.
     
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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Damo93 likes this.
  9. thatbum

    thatbum Well-Known Member

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    Gratz on the pickup, I think its a great price - but I can't see any rezoning happening anytime soon - I'm pretty sure the area was only recently rezoned as part of a garden city structure plan.
     
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  10. Damo93

    Damo93 Well-Known Member

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    Thanks, appreciate it!
    Yeah i agree I think more like 10 years or so for rezoning.
    We will have over half the mortgage covered with rental income for the next 5-6 years. We’re lucky to have friends who are students living in/near the area currently renting with long postgraduate degrees. Good opportunity to pay down debt while interest rates are low and before the kids come along.
     
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  11. MFol

    MFol Member

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    Hi All brand new to this and love your forum! We currently own a 3x1 in Innaloo that we want to make our investment property and move our to a bigger PPOR where we could do work. Thinking Doubleview, Karrinyup, Sorrento - any advice on what to look for and those areas? Also would like another investment property but cannot seem to find cashflow positive ones in WA ( bar a couple in places like Forrestfield/Armadale) - thoughts?
     
  12. property world

    property world Well-Known Member

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    FHB ?
     
  13. JohnPropChat

    JohnPropChat Well-Known Member

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    CF+ on what LVR? Negative gearing? Depreciation benefits?
     
  14. MFol

    MFol Member

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    Thanks John.
    Investment property - would go 80% LVR. Our innaloo house would be negatively geared ( bought at a bad time when the market was higher and prob overpaid compared to demands now for rent in the area) so ideally don’t want to have two with negative gearing.
    The PPOR we are less decided about how much to spend and what LVR we will end up at, researching areas that might suit
     
  15. Damo93

    Damo93 Well-Known Member

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    Yeah, been 3-4 years in the making. Doubling my income and a whole lotta research and meeting the right girl helped secure the house in that area. Good times!
     
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  16. property world

    property world Well-Known Member

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    Nice very impressive to be buying a FHB at 750k with just you and your partners work. Fairly blue chip area cant go wrong as a FHB.

    May i ask of you and your partners age? If you dont want to anwser that, thats fine.

    Also how much stamp duty do you have to pay in 750k as a FHB? I suspect a heap 40k?
     
  17. JohnPropChat

    JohnPropChat Well-Known Member

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    There seems to be no unified way to define CF+. For my calcs, I define it as income - expenses

    Expenses:
    Mortgage interest (I don't count the principal payments)
    Council Rates
    Strata fees (if any)
    Land tax
    Water Corp
    Insurance
    PM fees
    Repairs and maintenance

    Income:
    Rent
    NG (if any)

    End of tax year, if you made a few bucks then it is CF+.

    A property that has a 4% yield on purchase price is 3.52% (after PM fees) and 4.4% at 80% LVR. If the mortgage interest is about 4%, the 0.4% will cover some of the other expenses. Throw in some NG benefits, it'll be very close to CF neutral.

    Now, if the yield is 4.5%, 5% etc then it'll be CF+ (in my book anyway). Having said all that, I don't worry too much about having IPs that are neutral/CF+ and compromise on buying good quality stock with CG prospects.
     
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  18. Damo93

    Damo93 Well-Known Member

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    No problem, im 25 and shes 23.

    The house was bought at 730k and stamp duty works out to be 28.5k roughly. Her mum owns a settlement company so no fee for that. We had a 20% deposit and still 50k leftover for renovations. I think we’ve done pretty well.
     
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  19. property world

    property world Well-Known Member

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    Very very impressive




    {Note from mods - thread continues here: WA - Post a Bargain - Perth 2019}
     
    Last edited by a moderator: 22nd Jan, 2019

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