Tag Archives: body corporate

CAN’T FIND A STATISTIC EVEN IF YOU WANTED TO!

I thought I’d take a peek at where I rent to see how the rumoured ‘re-sales’ have been going.  You know I couldn’t find the place for love nor money. I searched in every way possible.  Gone. Vanished. Never existed.  Ka-Boom!

Turns out the Valuer General (VG) has our Apartment Complex listed as being in an adjacent street!  No wonder I couldn’t find it!  The very nice lady at VG contacted the local Council and Australia Post, who both confirmed the address I have, and she promised to immediately (if not sooner) amend their records to reflect the change!  Imagine the confusion this has caused lawyers, conveyancers and real estate agents?

Anyway, I managed my good deed for the month and now the records are slowly being updated.  And now I could see exactly what’s been going on and whether buying one of these (rather nice) apartments would have been a good idea…

Good News first.  Apt 7 was bought for $580,000 in Dec 2010 and re-sold for $610,000 in Oct 2012.  A profit?  NOPE.  By the time you add stamp duty and legals to the purchase (lets see, maybe $20,000 (not including Bank Fees if there was a mortgage) and take out Agents fees, legals and perhaps some advertising at the sale end, ( lets say around $16,000) the net result was probably a $6,000.00 to $10,000.00 loss (if lucky).

The other 6 purchases and re-sales within a 3.5 year period yielded losses ranging from a minimum $80,000.00 to a staggering $155,000.00.

I don’t know where this BOOM is happening?  Do you?

Advertisements
Tagged , , , , , , , , , , , ,

RED ALERT

2003.  I have several lovely clients from Malaysia who’ve bought and sold a few investment properties through me.  One of them refers an equally delightful man to me and I eventually receive an email from him.

Hapless (I use that word a fair bit I guess but it’s such a good descriptor) fellow was “stitched” into buying an Apartment “Off the Plan” and settled in 1998 or thereabouts.

The “deal” included a Rental Guarantee of 7% per annum on his $299,000.00 purchase price for the first two years, rising to 8% for years 3 and 4.  From Year 5 the rent reverted to market return.

Continue reading

Tagged , , , , , , , , ,

ONLY FOOLS AND HORSES

Only Fools and Horses?  See HERE

I’m writing this blog to give you a “heads up” if you own a Unit or Apartment in a complex, or are thinking about buying one.

There are plenty of people who attempt to get rich quickly and don’t care how much stress, pain and suffering they inflict along the way. There are others who don’t care about the people they are engaged (and paid) to work for and treat them with contempt.

I’m going to talk about Bodies Corporate, also referred to in the USA for example, as I understand it, as Homeowners Associations (common-interest developments – CIDs) and the like, and the Managers of such complexes.

I’ve been the Chairman of 2 Bodies Corporate and both times for me it was a non-remunerated nightmare.

Continue reading

Tagged , , , , , , ,

HAND ME THAT ROPE

A while back a client came to me somewhat puzzled.  He owned a few investment properties and ran a successful interstate business with more than 20 staff.  He was a man I thought was very much “on the ball” and “honest as the day was long”.

One of his properties was a Holiday/Vacation Let, managed by a Live In, On Site Management team that here in Queensland we know as a “Management Rights”.  Almost anyone who can obtain a rudimentary government licence can buy Management Rights to a group of properties, a 3 level complex or a massive 70 story high rise.

Don’t get me started on how easy it is to obtain a licence to operate, in some cases, a multi-million dollar business with thousands of clients, sophisticated software packages and heavy legal responsibilities.

By the way, I hold a full Real Estate Licence in the State of Queensland, which is almost a year’s study and plenty of examinations, and Trust (Escrow) Account Audits.

Anyway, I digress!

Continue reading

Tagged , , , , , , , , ,
Advertisements
%d bloggers like this: