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Discussion in 'Introductions' started by investa, 8th May, 2008.

  1. investa

    investa Member

    Joined:
    7th May, 2008
    Posts:
    6
    Location:
    perth
    Hi everyone, found this site two days ago and have already used some of the tools I've found. Thanks!
    In Adelaide at the moment, having just finished a stint in NSW. Will be heading home across the Nullaboor soon to WA. Only recently bought an IP here in SA, thanks to a great mentor, but still very green about the whole thing!

    Looking forward to spending some time here and learning.

    cheers
    Stuart
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
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    4,619
    Location:
    Sydney, Australia
    Welcome investa - great to have you here.
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
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    1,885
    Location:
    Sydney
    Welcome Stuart

    Can you tell us more about your SA purchase, and your mentor? Very interested to know more.... :)
     
  4. investa

    investa Member

    Joined:
    7th May, 2008
    Posts:
    6
    Location:
    perth
    Hi Jacque
    We've bought a house out in Elizabeth, one of the northern suburbs of Adelaide predicted to do well over the next year or two. It took some time to find something that presented well and had some improvements (new kitchen etc) to make it rent easier. Rental yield is still only just over the 5% mark though.
    My mentor was a fellow sandgroper who happened to live quite close over in NSW, so we spent time going through the figures and the research. It was great having someone so willing to part with information and very handy to bounce ideas off. He's got a few mill in property under his belt.
    For the first purchase there's a fair bit to get stressed over, so he steadied the ship for us.
    Looking back though, there was a heap I didnt know or understand, but his point the whole way through was that you have to jump in to learn, so go for it. Not being adverse to risk, I did just that!
    Now I need to pick his brains about getting on with the next, and the next :) and read up a whole heap more...
     
  5. investa

    investa Member

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    Location:
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    ps interesting site you have there, got me thinking.
    I did some design work for a guy once who charged a fee based on what he saved the client. Called himself the negotiator or something... So if he saved you 10k off the price of the car you were going to buy, he might take 3k of that... win/win
     
  6. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
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    1,885
    Location:
    Sydney
    Hi Stuart

    Great that you found a trustworthy mentor who's a seasoned investor themselves- makes it so much easier, especially with all those first timer questions!

    As far as negotiating goes, the system you refer to is flawed, simply due to the fact that some properties are overpriced to begin with, whilst others are underpriced (rare but it happens) or realistic, so to charge a fee based on how much you can "save" off the purchase price can prove to be false economy. I prefer a flat fee, as my clients know upfront what they're paying for, and I assertively negotiate on all my deals anyway :D
     
  7. investa

    investa Member

    Joined:
    7th May, 2008
    Posts:
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    Location:
    perth
    agreed - although useful in a retail environment where someone doesnt know how to negotiate a discount on a big ticket item.
    Any tips on negotiating on a house?
    With my IP, there was one other guy bidding, so I went in $3k higher and it was accepted straight away. Should I have gone in the same (the agent told me what the other offer was, which is dubious in itself) but with better conditions? Or wait for a property with no competition?

    I guess the answer depends on all the variables in the situation
     
  8. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
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    1,885
    Location:
    Sydney
    You answered your own question with this last comment :)

    It does depend, as each sale and set of circumstances is different. Home owners, for example, act very differently to investors, and have different motivations when buying.
    If you were happy with the price you paid, and the return then that's the most important factor. Employing sufficient due diligence ensures that you know the market well enough to negotiate successfully, as you were well informed and knew your stop limit.