- Published: Tuesday, 18 June 2013 22:14
- Written by Sean Summerville
How to Get Property at Massive Discounts
The property matrix
Property 30% Below Value...Don’t Bother, Sean Bought them All?
Question: How many properties do you want?
Answer: As Many as You Can Get you silly thing...
Recently at one of our closed door workshops one of our experienced team members said the following phrase. Don’t Bother trying to get any discounted property, Sean has bought them all!
It was tongue in cheek but it makes a good point.
No one person, organisation or company can possibly corner the market. There are plenty good value properties just look for the Opportunities. The Deal of the Decade appears one a week...
As promised, the property Matrix that I use when buying property at a discount is listed below.
How to get property at Massive Discounts...
Getting a 10% discount when purchasing property.
Always and I mean always negotiate when it comes to property. In Australia we are conditioned not to ask for a discount on any product. So let me ask you this, when was the last time you asked for a discount on your grocery bill at Woolworths or Coles? I have asked this question of thousands of people and very few say that they ever asked for a discount. With property you always ask for a discount.
Property at 20% below valuation. The easiest way to get property to purchase property 20% below value is to find a distressed or a Mortgagee in possession sale and put your offer 20% below the asking price. The banks have lenders mortgage insurance or L.M.I. and will often consider a lower price because they can always go to the Mortgage Insurer and claim against that. Repossession property are the one category of property that the banks and mortgage insurers want off their books. The more property the banks and mortgage insures are holding, the more it inhibits their borrowing capacity.
Any property with a 30% Discount and over is definitely harder to find. You will have competition from other property investors who operate in this area. The types of property you look for are properties that have problems. Some of these are listed below
Vacant houses. Properties in need of repairs. Owners moving overseas or relocating. Divorced situations or a landlords that has bad tenants or simply need do not want home ownership any more.
The 30% discount on property and above group, these include your motivated seller and an underlying pressure that are forcing the quick sale.