zaph

Zaph's real estate adventures

255 posts in this topic

a better system would be no bids bellow the reserve. start the bidding at the reserve!

That makes sense - so long as people are prepared to start there:)

By the same token I don't get advertised ranges. 420-460k WTF? I said to a REA once, why would anyone offer above 420 if they wanted the place? The REA assured me that people do. I just don't get it. I'd offer 420k, if I thought it was reasonable, and walk away if they weren't prepared to sell.

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By the same token I don't get advertised ranges. 420-460k WTF? I said to a REA once, why would anyone offer above 420 if they wanted the place? The REA assured me that people do. I just don't get it. I'd offer 420k, if I thought it was reasonable, and walk away if they weren't prepared to sell.

If you're always willing to walk away then you hold all the power.

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now listed at 599k - what they paid for it.

now under contract for the last couple of weeks. looking forward to see what it went for, expect 600k or 2c less. a BIG loss. 'welcome to Brisbane where the local time is, negative equity'

I'm sure we're all familiar with the rea junk mail. one feature is the DL flyer with chest beating of what they got. for the first time i've received a chest beating rental dl. they managed to rent for 410pw or 5.2% on what the new owners purchased for.

the rental roll is the bread and butter of an agency. perhaps they're getting hungry?

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strictly to the letter of the law, no. but there's no shortage of agents that advertise GFs in the area, so the council mustn't be too worried or the law's a bit ambiguous. with it's own entrance the GF would also make a great office for someone working from home.

now listed at 649k. which would be ~ break even (ignoring holding costs, they're not an expense but a tax deduction, everyone knows that!). 600k purchase price + 20k SD + 16k agent selling fees + 14k carpet and paint.

i give it 4 weeks and it'll be up for rent again.

on the house has been updated. sold for 585k, 15k less than what they paid for it two years ago. 65k (+holding costs) loss in two years, 11%. given the state of the brisbane market a good result. just think of the juicy tax deductions! oh hang capital losses can only be offset against gains.

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on the house has been updated. sold for 585k, 15k less than what they paid for it two years ago. 65k (+holding costs) loss in two years, 11%. given the state of the brisbane market a good result. just think of the juicy tax deductions! oh hang capital losses can only be offset against gains.

Thanks for following this up and posting Zaph. I love real life stories.

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Thanks for following this up and posting Zaph. I love real life stories.

obviously so do i. but i don't take a few experiences and generalise them too much. however they can be an indication of what might be going on and encourage one to seek out better evidence.

whenever i see a new for sales board in my area i get on re.com.au and check it out, usually using map view as it is easy to find. one popped up recently. upon checking out the re.com.au i discovered three other new listings that do not have boards out the front. are other people noticing marketing without for sale signs out the front?

mods - would you be able to change the title of this thread to zaph's real estate adventures or similar? i want to keep track of my local anecdotes here.

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mods - would you be able to change the title of this thread to zaph's real estate adventures or similar? i want to keep track of my local anecdotes here.

Perhaps you can get some lucrative sponsorship like that guy who films himself around the world, doing that dopey dance and being sponsored by Visa!

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Perhaps you can get some lucrative sponsorship like that guy who films himself around the world, doing that dopey dance and being sponsored by Visa!

maybe i should give fox symes a call.

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another anecdote

place near my parents. sold 11/2008 $535,000. sold 10/2011 $547,688. nothing done to the place in that time. that's 2.4% appreciation in three years.

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another anecdote

place near my parents. sold 11/2008 $535,000. sold 10/2011 $547,688. nothing done to the place in that time. that's 2.4% appreciation in three years.

$547,688 deflated by 2.5% per year for CPI means that their proceeds are worth $516,098 in 2008 dollars.

Less interest on 80% of the purchase price at 6% for 3 years ($77,040) gives an overall holding cost of $95,942.

Can't lose with property? Yikes!

[and yeah, I cheated a bit by calculating the interest in nominal terms without adjusting for CPI]

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$547,688 deflated by 2.5% per year for CPI means that their proceeds are worth $516,098 in 2008 dollars.

Less interest on 80% of the purchase price at 6% for 3 years ($77,040) gives an overall holding cost of $95,942.

Can't lose with property? Yikes!

[and yeah, I cheated a bit by calculating the interest in nominal terms without adjusting for CPI]

to be fair you'd need to account for rent and other holding costs. say around 75k rent and 10k in rates with around 12k op cost of the deposit. so around 42k holding plus agents fees and duty = 73k total holding cost assuming no maintenance. back of the envelope calcs, but still ouch!

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opens:<br style="font-size: 13px; line-height: 19px; "><br style="font-size: 13px; line-height: 19px; ">1. 495k neg. <br style="font-size: 13px; line-height: 19px; "><br style="font-size: 13px; line-height: 19px; ">last sold 11/9 445k. I actually looked at this in 11/9; then asking 469k. failed auction 5/10 marketed for a couple of weeks at 520k after auction. rented for a year at 400pw. tenants evicted, now marketing again.<br style="font-size: 13px; line-height: 19px; "><br style="font-size: 13px; line-height: 19px; ">overseas buyers bought it (common in this Chinese buyer area) hated in when they saw it. never lived in it. tried to sell for too much. rented it for a year with a 4.6% gross yield. trying to sell again. only person at the open. great chat with the agent. <br style="font-size: 13px; line-height: 19px; ">

number 1 - after we both worked out (which was obvious) that i couldn't flip the place, manufacture equity or the place be cash flow positive the agent let down her guard. agreed they would be lucky to get 445k for it now and that it should be listed around 450k. encouraged me to offer 400k. talked down the owner. hadn't made a sale for 3 weeks. stated that a $1000 fine was not even a weeks mortgage repayments for her. she was going to intensively market the property for 3 weeks with three opens a week and then change the listing to by appointment and eventually drop the owner if they didn't come down in price.

a place i looked at in June from this thread http://www.simplesustainable.com/topic/4060-qld-plans-surgical-strike-on-construction-sector/page__st__20

still on the market with yet another agent, now at 475k

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$547,688 deflated by 2.5% per year for CPI means that their proceeds are worth $516,098 in 2008 dollars.

Less interest on 80% of the purchase price at 6% for 3 years ($77,040) gives an overall holding cost of $95,942.

Can't lose with property? Yikes!

[and yeah, I cheated a bit by calculating the interest in nominal terms without adjusting for CPI]

+ transfer costs on both entrance and exit -- stamp duty around 3% (?), real estate agents fees (2.5%) and associated advertising costs, legals, mortgage duty, etc. That cost about 6% more I would guess -- around another $32K. Over only 3 years ownership that's another 2% loss per year.

You can only win with property if you time the beginning of a bubble! Or buy in a gentrifying suburb before anyone else realises. Or be a mega-developer.

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house listed a few streets away for 460k. a house, not as good but 4 bed instead of 3 has been on the market for months at 430k.

drove past at the open time today (first open), dropped in and no one else at the open.

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house listed a few streets away for 460k. a house, not as good but 4 bed instead of 3 has been on the market for months at 430k.

drove past at the open time today (first open), dropped in and no one else at the open.

This week dropped to 419k+. (the 460k one)

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This week dropped to 419k+. (the 460k one)

This one sold about a week after it's price reduction. waiting on onthehouse to update price.

of the six properties that have been on the market this year in the few streets around me that I've been tracking:

1.first 460k, then 419k+. sold. waiting on sales data

2.429k. main road.asking price about right if it wasn't on a main rd. on market for a month or so, then sold. waiting on onthehouse to update price.

3.419k. main road.asking price about right if it wasn't on a main rd. on market for a couple of months, then taken off market.

4.first 460k. reduced to 430k after a few months. been on the market since ~ October. still hoping.

5. first 579k reduced to 549k after a month. latest asking about right. left on market for a couple of months. now taken off market and up for rent, 650pw.

6.550k. overpriced by about 50k. sat on market for a couple of months. now taken off. from the pics and inspection by appointment, i suspect this has had a tenant the whole time

when i talk of over/under pricing I'm referring to comparable asking prices, not sold prices.

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You've got to love the copy some of the Chinese agents write...

· The garage convert to home business, with well equipments air-condition, wet bar and own toilet

· The solid brick home is separate with the working place.

· You can rent the working place out and get $2000/month extra income.

· Over 5 car parking space, 4 air conditions, rain water and solar power

· 4 well size rooms, spacious open plan lounge & dining room, 3 toilet / 2 baths huge rear entertainment area over looking surrounding neighbour.

not to mention there's no way you would get $2k PM for a double garage that convert to work place, and they're asking at least 100k more than comparable properties.

Edited by zaph

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the agent delivered a sold spruik brochure, so I rang her...

1.first 460k, then 419k+. sold. waiting on sales data

house sell around 420k. around 420k. house sell around 420k. "house sell around low 420k"

5. first 579k reduced to 549k after a month. latest asking about right. left on market for a couple of months. now taken off market and up for rent, 650pw.
<br style="font-size: 13px; line-height: 20px; ">

"house return to china" - after asking i was non the wiser what a "house return" to china meant. the agent agreed that the rent was on the high side. "house return to china:" several times. <br style="font-size: 13px; line-height: 20px; "><br style="font-size: 13px; line-height: 20px; ">

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This one sold about a week after it's price reduction. waiting on onthehouse to update price.

1.first 460k, then 419k+. sold. waiting on sales data

i got access to RP data. this sold for $410k not 'around low 420k' as the agent said.

here's some more wonderful copy...

Fantastic opportunity to pick up this house and business combated property, located at busy smith St. near the bus stop, it featuring 4 bedrooms, ensuite, formal lounge and dining room, large family room, outdoor entitlement area,2 carports. High Potential rental if rented out individual room., Land Size 610m2 , Opposite to age care centre. Hair Salon-council approved, it has been well established since the 2005, with the current owner looking to retire. It’s completely fitted out with over 3 stations, 1 wash basins, front reception, air conditioning. Please contact exclusive agent
Edited by zaph

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You've got to love the copy some of the Chinese agents write...

sh*t isn't it?

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i got access to RP data. this sold for $410k not 'around low 420k' as the agent said.

here's some more wonderful copy...

...It’s completely fitted out with over 3 stations...

Awesome! No need for a car. Hmmmm, where you learn talk? indeed.

The real estate industry needs a thorough cleaning. The lies and deception is phenomenal.

Edited by tux

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Awesome! No need for a car. Hmmmm, where you learn talk? indeed.

The real estate industry needs a thorough cleaning. The lies and deception is phenomenal.

i certainly do not mean to be racist in my posts of chinglish, it's just a good giggle.

we all have our language limitations. if I was to write in the only other language I can speak a bit of, you'd barely understand what I was saying.

70% of the target market in this burb is English speaking. if you are appealing to the other 30% then post your RE ad in Chinese. if you are an agent with a poor grasp of English get someone else to do the English copy. none of the agents post copy in Chinese.

30% of the realtors in my area are totally incompetent. 30% are below average. 20% are average and 10% actually do a good job. if i had no ethics i would open a real estate agent business and make a killing.

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If you are an agent with a poor grasp of English get someone else to do the English copy.

My sentiments. Who said anything about racism. I am fully aware that most bogans cannot write English copy much better either.

I don't think it is too much to ask businesses to improve the literacy in their communications.

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I don't think it is too much to ask businesses to improve the literacy in their communications.

Me thought it very good well Engrish. You like no own toilet with home business?

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i certainly do not mean to be racist in my posts of chinglish, it's just a good giggle.

we all have our language limitations. if I was to write in the only other language I can speak a bit of, you'd barely understand what I was saying.

Encouraging better English cannot be a racist thing.

Otherwise, if I were to comment on your incorrect use of future subjunctive, then I would be guilty of racism too! tongue.gif

Edited by AndersB

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