zaph

Zaph's real estate adventures

306 posts in this topic

5 hours ago, zaph said:

I've decided to downgrade (downgrade is a swear word in RE - it's downsize!). I no longer want a big 4 bed, 2 bath, 2 living home and I'm sick of dealing with boarders. I'm moving to a bedsit in Santiago de Cuba; or Inala, I haven't decided yet.

I had four sets of agents around to pitch:

  • A newbie guy (Tony) who happened to knock on my door at the right time. Ray White. I think Tony almost came when I said, yes, I will be selling come in and come back and pitch. Tony came round with his boss to pitch. The boss did all the talking, which I didn't like as it was Tony's gig. I didn't like either of them and both spoke sub standard English. $750-850k. 
  • An agent from a tiny agency that my neighbour sent around. He was probably the least real estate agent like of all of them. But decided that if you are hiring a crook you need a crook. Small agency turned me way off too. At least $850k.
  • A Hooker. The star agent for the area. I've met her a lot as a buyer, and as a buyer was impressed. Not impressed with her selling to vendor skills. Generally irritated me. Gave factually incorrect information. English passable. Would not give an estimate of sales price at all.
  • A couple from the RW office of Tony who must have heard about my interest in selling at the water cooler. Turned up unannounced. A French Canadian/Indian/Australian guy and a Chinese Oz gal. He spoke perfect English and Punjabi (so my boarders told me). She speaks acceptable English and Chinese. It's unethical that they steal a listing from colleagues - but that's exactly what you want in an agent when selling. I'm going with this pair. $740-770k

Footnotes:

  • I live in Sunnybank. China central. There have been a lot of Indians 'swamping' the area in the last few years - although they mostly seem to be renters.
  • All recommended an auction. Of course they would - it's the fastest way to sell a property and coerce the vendor into accepting a lower price.
  • All commented about a seperate toilet. It seems a separate toilet is important for Chineses. 
  • I bought the place 7 years ago for $475k. I estimate it will sell for $700k +/- tip. 

 

Have you looked into a lower commission agency like Purplebricks? They didn't exist last time I was selling. I don't think those shonks deserve the large commissions they get. 

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3 hours ago, cobran20 said:

Have you looked into a lower commission agency like Purplebricks? They didn't exist last time I was selling. I don't think those shonks deserve the large commissions they get. 

I haven't looked into the likes of Purplebricks. I'm hiring a thief; I want a crook to do the job. 

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One of the agents said a number of foreign buyers will make the contract subject to FIRB approval (this is China town). He said they approve 99% of all applications, so it's just another 'subject to' clause and a delay in making the contract unconditional. Myth that aliens don't buy property in oz busted. 

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Hey if you sell your place to a foreigner you should sell your story to some news outlet as an expose on dodgy property dealing (after settlement of course!).

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52 minutes ago, Mr Medved said:

Hey if you sell your place to a foreigner you should sell your story to some news outlet as an expose on dodgy property dealing (after settlement of course!).

If I knock the buyer up do you think I'll get $150k for the interview?

Edited by zaph

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5 hours ago, zaph said:

If I knock the buyer up do you think I'll get $150k for the interview?

If the buyer is a chinese politician, you're in with a chance as they're very much into saving face.

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On 07/06/2018 at 9:00 AM, Solomon said:

$225,000 capital gain in 7 yrs. That's a pretty good investment zaph if you get the price you are after. It takes me five years to earn (gross) that amount of money. And when I think about all the work and time I've had to put in to get it, I can see, I should have just bought a wooden box.

Well it's not all profit. There's buying costs, holding costs, opportunity cost of the deposit, maintenance, rates, water (in and out of the property), stamp duty etc. There's also the cost of selling, which will be about $25 -30k. 

Quote

Did you do any improvements to the property, or is that all based on land/house value increase?

No improvements. The opposite actually. Just normal wear and tear on a property. The carpets were new (or near new) when I purchased and while not threadbare, they're now looking a bit worse for wear. The kitchen is getting wrinkles and the polished floor boards are not so sparkly. The bathrooms have held up remarkably well. The gardens are not as good, but that is just my lazy lack of upkeep, rather than aging. 

When I sell and know the sales price I will provide a comparison of renting vs owning this property. 

Quote

All the very best to you on your intended sale.

Thank you. 

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There's a property near me that is lowest for the area. Dumb arse LLs.

They kicked out the tenants about 5 months ago. Sat vacant for 3 months. Then two months of renovations. Three cars at the joint ever day for at least 60 days. That's got to cost at least $100k. It would increase the value by $10k.

I might make an offer on the place. I'll call mum and see if she has any schillings.

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On 18/07/2018 at 11:16 AM, zaph said:

There's a property near me that is lowest for the area. Dumb arse LLs.

They kicked out the tenants about 5 months ago. Sat vacant for 3 months. Then two months of renovations. Three cars at the joint ever day for at least 60 days. That's got to cost at least $100k. It would increase the value by $10k.

I might make an offer on the place. I'll call mum and see if she has any schillings.

I went to the auction yesterday. It's new everything inside - kitchen, all appliances, 4 ac splits, marble like tiles, carpet, paint, bathroom etc. The lot - everything inside has been replaced. Outside they put up a perimeter fence to give the corner block a back garden. Carport. No garage. No landscaping, none was done in the reno's just real sh*tty grass. It looks good inside but is still a very small 3 bed 1 bath, that looks sh*t from the outside. On second thoughts they might have spent +/- $50k on renos.

Only one registered bidder. First bid 450, vendor bid 500, same bidder 505, passed in on vb of 515. Why do people bid against themselves? I know the owners want 660. Tell em they're dreamin...

 

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3 bed 1 bath 1 garage 1 carport/patio for rent down the road. Been trying for ~6 weeks at 375, just reduced to 365. Good condition but original yellow kitchen and lime green bathroom.

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I think the real fun of investing in real estate is when you only

put in 20% of capital the rest financed by credit and the house price increases 30% over 5 years in value then you sell, it means:

100k from my pocket

400k from bank

500k value

then 30% increase of value -> 650k

650k new value but 400k to the bank and 250k for me

 

My 100k became 250k in 5 years thats 20% annual gains on my capital!!!  Its like buying a warrant or leveraged futures on the house price.

I think thats where the fun is during this Real Estate boom that we had in the world.

And from now on, the losses will be leveraged AND the higher interest rates will blow the monthly budget out the roof!!!

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I'm trying to sell my house. 

The Chinese agent said 1. We will get a building and pest inspector who will pass it no matter what. 2. We will get a loan broker who will make the pay slip very good. Loan, no problem. 

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3 hours ago, zaph said:

I'm trying to sell my house. 

The Chinese agent said 1. We will get a building and pest inspector who will pass it no matter what. 2. We will get a loan broker who will make the pay slip very good. Loan, no problem. 

That is possibly a crock. Financiers have a 'claw back' clause with commissions, where if the loan goes sour within a period of time, they ask for all or part of the commission to be returned. Also after the Royal Commission, I'd expect for financiers to more thoroughly scrutinise the prospective borrower's ability to service the loan.

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The days of wine and roses haven't ended quite yet. But soon I think.

Are you upgrading zaph?

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21 hours ago, cobran20 said:

That is possibly a crock. Financiers have a 'claw back' clause with commissions, where if the loan goes sour within a period of time, they ask for all or part of the commission to be returned. Also after the Royal Commission, I'd expect for financiers to more thoroughly scrutinise the prospective borrower's ability to service the loan.

Could be, and could be big noting. My Chinglish is not good very. 

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20 hours ago, staringclown said:

Are you upgrading zaph?

No. Downgrading.

One real estate agent corrected me when he asked the same question and I answered, downgrading. "So you're looking for something more comfortable and closer to amenities". Any closer to amenities and I'd have my kitchen in Coles and my lounge room in a Chinese restaurant.

I no longer need such a big house. In fact I never did. I purchased it to provide a family home for my sister and niece. Sis immediately shacked up with a guy. I call her the best flatmate I never had as she paid modest rent for a year but only stayed here for 5 nights. I gave it five years to ensure she stayed with the new bloke before making the decision to sell. I've had borders for the last 4 years and what a pain in the arse.

I'm thinking of buying a small unit around the Valley (Fortitude Valley) if I can get one for a fire sale price with all the unit overbuilding. For those unfamiliar with Brisbane the Valley is the entertainment and sin capital of Brisbane. I could always take up dealing meth if I hit hard times. If I can't afford the Valley then perhaps Santiago de Cuba. 

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Very good of you to sacrifice for family. The Valley isn't half as seedy as it was in the Joh days. I used to drink at the Wickham and Ricks cafe circa 1991-4. Gentrification is complete. I understand that the unit market in Brisvegas is oversubscribed so it's possibly a wise choice. Watch out for build quality and strata fees though. Both are a problem in Canberra. Also the growing issue of air&b party units. The Valley is still an attractive tourist destination. Inner city life can be fantastic or awful. Choose well. :)

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8 hours ago, staringclown said:

The Valley isn't half as seedy as it was in the Joh days. I used to drink at the Wickham and Ricks cafe circa 1991-4.

I wish it had stayed seedy. Was the Wickham a gay bar back then? It certainly was by ~96. Rics is still going strong. If you haven't been back to Brisbane for a while you wouldn't recognise the Valley and Teneriffe. South Brisbane and West End have also changed a lot. Spring Hill not much. Woolloongabba is changing as I type. The Waterloo and Dead Rat have gone all trendy and no longer have topless barmaids. 

Quote

Gentrification is complete. I understand that the unit market in Brisvegas is oversubscribed so it's possibly a wise choice. Watch out for build quality and strata fees though. Both are a problem in Canberra. Also the growing issue of air&b party units. The Valley is still an attractive tourist destination. Inner city life can be fantastic or awful. 

That's the idea. Buy while there is massive oversupply and get a bargain. Push really hard on price. As an owner occupier I don't need to worry about a rental oversupply. Strata fees is an issue. The newer blocks with pools lifts etc describe $900 pq as cheap. Some are up to $1500 pq. Strata tends to be a lot cheaper of blocks of six or so - no expensive pools or lifts to pay for. There's more of that type of units in New Farm, West End etc, so that's probably where I will end up. Those older, smaller complexes are solid - the neighbours could be setting of fireworks and I wouldn't hear a thing. 

I've lived most of my adult life in the inner city. The CBD (if you could call it that) in Cairns. West End, New Farm, Kelvin Grove. So I'm familiar with, and like inner city living. 

 

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3 hours ago, zaph said:

I wish it had stayed seedy. Was the Wickham a gay bar back then? It certainly was by ~96. Rics is still going strong. If you haven't been back to Brisbane for a while you wouldn't recognise the Valley and Teneriffe. South Brisbane and West End have also changed a lot. Spring Hill not much. Woolloongabba is changing as I type. The Waterloo and Dead Rat have gone all trendy and no longer have topless barmaids. 

That's the idea. Buy while there is massive oversupply and get a bargain. Push really hard on price. As an owner occupier I don't need to worry about a rental oversupply. Strata fees is an issue. The newer blocks with pools lifts etc describe $900 pq as cheap. Some are up to $1500 pq. Strata tends to be a lot cheaper of blocks of six or so - no expensive pools or lifts to pay for. There's more of that type of units in New Farm, West End etc, so that's probably where I will end up. Those older, smaller complexes are solid - the neighbours could be setting of fireworks and I wouldn't hear a thing. 

I've lived most of my adult life in the inner city. The CBD (if you could call it that) in Cairns. West End, New Farm, Kelvin Grove. So I'm familiar with, and like inner city living. 

 

The worst I found about living in apartments is noise from surrounding units, especially above you. Also parking problems where anybody felt free to park in your private spot and you cannot call the police to organise for a tow truck to have it removed. Not something I want to return to.

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It really depends on the size and build of the apartment. My current apartment does not face the main street and I never hear the neighbours. I can't play music loud but otherwise noise really isn't an issue. Only three levels of apartments too (above shops). No issue with parking.

If you buy from Highrise Harry it may be a different story.

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2 hours ago, Mr Medved said:

It really depends on the size and build of the apartment. My current apartment does not face the main street and I never hear the neighbours. I can't play music loud but otherwise noise really isn't an issue. Only three levels of apartments too (above shops). No issue with parking.

If you buy from Highrise Harry it may be a different story.

2 hours ago, Mr Medved said:

It really depends on the size and build of the apartment. My current apartment does not face the main street and I never hear the neighbours. I can't play music loud but otherwise noise really isn't an issue. Only three levels of apartments too (above shops). No issue with parking.

If you buy from Highrise Harry it may be a different story.

Good advice. The smaller the block the better. My first apartment was on the ground floor of a block of 12 units (3 floors). The second one was closer to the Meriton Valley type.

The problems were in the latter one, though I still had some parking problems with the first one. If you can, get at least a place with gated parking.

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9 hours ago, zaph said:

I wish it had stayed seedy. Was the Wickham a gay bar back then? It certainly was by ~96. Rics is still going strong. If you haven't been back to Brisbane for a while you wouldn't recognise the Valley and Teneriffe. South Brisbane and West End have also changed a lot. Spring Hill not much. Woolloongabba is changing as I type. The Waterloo and Dead Rat have gone all trendy and no longer have topless barmaids. 

It wasn't as exclusively gay as the Beat but certainly gay friendly. I had a friend that ran the clubs at the Treasury, Mass and the Wickham among others. I visit bris at least once a year but most of my friends moved to Melbourne ages ago so I don't get to check the old haunts unfortunately. We lived in East Brisbane 100 yards from the Wellington hotel. Great spot. It's all high rise now. West End was starting to change just after Expo. Three monkeys cafe was a fave and King Ahirams did the best kebabs. I'm tearing up at the thought. :)

Quote

That's the idea. Buy while there is massive oversupply and get a bargain. Push really hard on price. As an owner occupier I don't need to worry about a rental oversupply. Strata fees is an issue. The newer blocks with pools lifts etc describe $900 pq as cheap. Some are up to $1500 pq. Strata tends to be a lot cheaper of blocks of six or so - no expensive pools or lifts to pay for. There's more of that type of units in New Farm, West End etc, so that's probably where I will end up. Those older, smaller complexes are solid - the neighbours could be setting of fireworks and I wouldn't hear a thing. 

I've lived most of my adult life in the inner city. The CBD (if you could call it that) in Cairns. West End, New Farm, Kelvin Grove. So I'm familiar with, and like inner city living. 

My sister lived in a really solid art deco 6 unit block on Oxlade drive. I'd love one of those. 

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I went to the auction yesterday. It's new everything inside - kitchen, all appliances, 4 ac splits, marble like tiles, carpet, paint, bathroom etc. The lot - everything inside has been replaced. Outside they put up a perimeter fence to give the corner block a back garden. Carport. No garage. No landscaping, none was done in the reno's just real sh*tty grass. It looks good inside but is still a very small 3 bed 1 bath, that looks sh*t from the outside. On second thoughts they might have spent +/- $50k on renos.

Only one registered bidder. First bid 450, vendor bid 500, same bidder 505, passed in on vb of 515. Why do people bid against themselves? I know the owners want 660. Tell em they're dreamin...

 

Suzie Wong, the agent, said they had 8 million written offers on the place. Sold. High 500's, mid to high 500's, then mid 500's. It (didn't) sold for 545 and the finance fell through and is now back on the market at 530. Poor Suzie. I'll give them 450 - they'll wait till I offer 440 and then not accept. The owners are serial stupid investors. 

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On 14/09/2018 at 0:41 PM, cobran20 said:

Also parking problems where anybody felt free to park in your private spot and you cannot call the police to organise for a tow truck to have it removed. Not something I want to return to.

Private contractors will remove a car at no cost to you. The owner will have to pay to get it back or the car goes to the knackery. Car? What car?

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