Ninja in a Blazer – 14th July 2022
July 14, 2022Monthly Video
July 31, 2022Talk about Practice What You Preach!!!
I purchased a house last week, we’re still working our way through the details (clauses), but all things looking good, I should be moving in by Mid August.
On another note…does anyone have any moving boxes they could lend me?
What was the reason I purchased a property?
My Adelaide house has grown equity allowing me to keep my savings and use the equity to purchase here in Queensland.
My borrowing capacity is nearly at it’s maximum it’ll be for a few years – APRA and rising interest rates wont make it easier to borrow as much. I’m assuming within a couple of months my borrowing capacity may have dropped a fair bit… I don’t know the numbers, but I’d be guessing $50,000 to $100,000.
House prices may come down a little in the next few months, but it’s likely the people that are selling have to sell, they’re unlikely to be choosing to sell. So there may be fewer listings over the next few periods as compared with other years.
If we wait 6 months to find another property, at possibly $20,000 cheaper – we’ve probably donated $15,000 to our landlord in that time for their mortgage.
My rent is not likely to stay as cheap as it currently is – with rising costs, rents are going up around the country. So rather than pay someone else’s mortgage I’ll put it into mine. Even with rising interest rates, it might mean an additional $15,000 per year in Mortgage repayments, but again, it’s on my own property.
Interstate migration into QLD is expected to be around 44,000 for the financial year ending in 2022, then 20,000 per year for the next 4 years after; before the lead-up to the 2032 Olympics really begins. So demand will likely outstrip supply for quite some time.
On another note, I have been hearing some really horrible stories recently about people being taken advantage of.
Someone informed me they’d paid a $25,000 deposit to a builder to start a $100,000 renovation on their home 8 months ago, and the builder has been harder and harder to contact weekly, also telling the owner “they’ll be there next week” multiple times.
And another client paid a $2000 deposit to a roofer to fix their roof – the roofer never turned up.
I don’t know how anyone can operate like this. However, similar things happen in real estate. Agents can effectively say whatever they want to as far as price goes – the owner doesn’t have to believe them, however I’ve been on the other end of an inflated price and it does make you feel good. Keep in mind if it sounds to good to be true, it probably is, feel free to question the agent where the numbers come from. Get a second opinion if you need it.
I’ve seen houses launch at around $2.1mil before ending at offers over $1.8mil. Now, don’t get me wrong, I’ve been wrong before, but if you look at the facts, the property probably wasn’t worth 2.1mil to begin with.
I then heard about a home buyer who felt they were tricked into purchasing a property under auction conditions (after the auction had been passed in) as the agent didn’t explain the clauses in the contract to them, simply asked their price and got them to sign off on it.
Unfortunately, stories like this are all too common. Speak with family and friends about who you can trust.
My aim in real estate is to be a trusted advisor like you’d have a doctor you can trust and you see whenever you feel like you need advice on your health. I want to be your real estate doctor. It’s a tacky term, but it’s true.
Avoid the snake oil salesman, the real estate agent who comes out looking all flashy, convincing you of something you’re hesitant about, but their salesman streak makes you believe it.
Like a doctor, my advice isn’t always going to be 100% correct, but I’m going to give the best advice known to me at the time.
