hi marko, how are you? glad to hear you were happy with jenman. Up here, the best agents also beleive that only certain situations justify auctions, and that proper marketing is the agents cost and responsibility. If its good enough to list, its good enough to advertise at the agents expense. the agent should manage budgets and risk in accordance with how saleable the listing is. I know First National take this view and are winning on the gold coast. agents like LJ Hooker and Ray White still promote auctions and vendor paid ads , but this really only benefits the agent. Many sales are mage as a result of a buyer enquiring about a vendor paid ad, yet end up buying another property.
Up here the jenman system agents offer $1000 wk retainer (double the std rate) BUT impose a whole lot of conditions, like, you have to door knock a lot of homes per wk, cold call by phone a certain amount, get referral leads, flyer mail drops, etc. All of which sounds good in theory, yet the burden is too high for a newbie, and the agents quickly tire of paying this retainer for no results, and as such therer is high turnover. This results in poor advice to sellers. If you were happy with jenman, then I think you got lucky mate. You must have had an experienced salesman.
Acronym, if you got 28% in a few months and were happy, then good for you. i could have made the same on qld property over the same short period. I feel the costs are too high to justify selling. The stamp duty and legals in and out, plus capital gains tax erodes most of your profit. Considering the low avge prices in latrobe valley, you mught have made 30-40k gross profit, less 7k stamp duty, 1.5 k legals, 10k cap gains tax, etc. Id rather wait for 100% gs profit after a few more years, but to each his own. A profit is a profit, so well done. I prefer to buy more against the rising equity.
Inner city apartments (new) are nearly always dogs. You can always drag up some research about the rising yuppie workforce and shortage of rents, and expected gains, but it rarely pans out. This sort of invester stock always has resales at less than new prices over the next few years until oversupply is taken up, and prices settle at what they should have been in the first place. They were overpriced when they were sold, and investors who buy without proper research deserve what they get. The only exception is inner city blocks that attract retirees like Sydney blocks with water views. They will do OK because there is demand for resale. The melb/sydney warehouses that were converted to appts and dockside junk will only sell to another investor, and as it is not new , it will have less depreciation, and look less attractive to an investor. Dont touch these 1br future slums. dont pay retail for stock. You can now joint venture with builders for a min 50k outlay and get 20% pa return, asset backed by land.they also let you invest your super there. drop me a line [email protected] if you want details. Be a seller , not a buyer. cheers
