advice, page-7

G,

One sale doesn't make a trend..........BUT.......
in an adjacent suburb to mine there was a price fall of 7 % in 9 months for a duplex style home.
This can be seen crystal clear because the compared properties were adjacent and mirror image and in the same condition.

I am supplying money to my eldest child to buy another duplex.

When you buy property it must be financially structured so it cannot fail.

For a valuation principal I have applied the square metre dollar value of the recent sale to the proposed purchase.
So far the seller is proving resistant to the new market reality..........he is being asked to take a $60 000 price drop.
I am ignoring the real estate agents protestations that the nominated price is reasonable.....the agent is just trying to get my child emotionally involved.

Whoever has the gold makes the rules !

Housing in Sydney is pretty fully priced....but crumbling.

The financial structure being setup is that I will supply money until the amount borrowed from the bank is within repayment capabilities no matter what happens.....ie the bank repayments are only 70 % of the current rental value.....so if jobs are lost the child can move back home and rent it out.........and still be covered if interest shifts up a bit.

I will keep you updated on negotiations.