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Sydney real estate: Man owns six properties at 32

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A Sydney father, aged 32, can boast a portfolio of six properties valued at $ 2.7 million. That’s how he did it.

At the age of 32, Bobby Haeri owns six properties in two different states with net worth of $ 2.7 million.

The Sydney father bought his first property at the age of 18 after sharing the cost with his sister and father.

Since then, he has pushed his way through loans, rent, mortgage insurance, and his salary to buy another five properties.

“The reality is that you have to make sacrifices, maybe not go on vacation for a few years, budget, or work 12 hours a day,” he told news.com.au.

“Working just eight hours, five days a week, will be difficult to achieve in the early stages.”

Mr Haeri says he now works 12 hours a day, six days a week and runs his own real estate agency while he and his wife Dionne raise their daughter Mia, 1.

Although he admits he currently has $ 1.89 million in debt, he has healthy cash flow.

His tenants bring in around $ 10,000 a month and he only has to pay off $ 7,000 a month on his mortgage, which leaves him in his pocket.

Immediately after graduating from high school, Mr. Haeri went full-time, started his own gardening business and bought his first property in 2008.

It was a $ 550,000, two-bedroom, two-bathroom apartment in St. Ives, north Sydney.

“At that point in time there were government grants and incentives, it was about a five percent contribution. You didn’t have to pay stamp duty, you paid stamp duty and then you get it back, ”he recalls.

They spent $ 27,500 to secure the apartment.

When he was 21, he used his share of the equity on his first property to buy his second.

This time it was a two-bedroom, one-bathroom apartment in Killara, a neighboring suburb of St. Ives, for $ 570,000.

“When I worked in the gardening business, I listened to podcasts and read books 11 hours a day. I felt like I knew a lot about real estate, ”he said.

Both properties had tenants covering his mortgage fees.

A year later, Mr. Haeri decided to sell the apartment in Killara as he had just become engaged to his current wife, Dionne.

Since it was in Sydney during the housing boom, the apartment cost $ 100,000 more than he paid for it.

Two years later, at the age of 25, he used part of this money to finance his wedding and honeymoon. The rest went to a new home for him and his wife, which, like the previous apartment, cost $ 570,000.

It was a one-room apartment in Brookvale, Sydney’s Northern Beaches.

The $ 2,200 a month mortgage payments were “convenient” as his gardening business was doing well and Dionne was earning a post-graduate engineering salary. Together they made just over $ 100,000.

Because of this, Mr Haeri said, “You definitely want to try (building a real estate portfolio) with someone” as a piece of advice.

With two qualities in his name, Mr. Haeri decided it was time to try something different.

In 2017, he heard that Grafton, a town in the Northern Rivers region of NSW, was going to have many government infrastructure and construction projects going on.

“This is how the area gentrifies when you see these regional cities experiencing strong growth,” he said, adding that he wanted to diversify his portfolio.

The couple bought an established home in Grafton for $ 290,000.

“The thought process was that we knew we wanted to build a real estate portfolio, but the cash flow income in Sydney wasn’t there,” Haeri said.

“You can’t own more than two properties in Sydney because it’s too difficult financially.”

He believes 90 percent of investors are “stuck” with the two-property brand.

Then they grabbed a 700-square-foot block of vacant land valued at $ 65,000, also in Grafton.

They divided the empty lot in two and built two completely identical houses with three bedrooms and two bathrooms.

Each house cost $ 260,000, but they only needed a 10 percent down payment to build.

At that time, in 2017, Mr. Haeri owned five properties.

A year later, Mr. Haeri and his sister sold their very first property.

“I wanted to keep building my portfolio and my sister didn’t,” he said.

“It was easier to go away with my money, she’s gone with her money.”

They had held the St. Ives apartment for 10 years. It sold for $ 790,000, up from $ 550,000 when they originally bought it, bringing him an additional $ 100,000 straight into his pocket.

In the same year, in 2018, Mr. Haeri stepped down from his gardening business and delegated the tasks to others, but still reaped the rewards, which gave him the time to set up the real estate investment agency.

They also moved out of their Brookvale home and opened it up to tenants. So they could live cheaper elsewhere and the rent covered their mortgages.

The couple had worked hard to repay their mortgages “fairly aggressively” and felt ready to buy again in early 2020.

In March of last year the Haeris looked even further into the distance – this time to Queensland.

They got a $ 300,000 house in the southern Brisbane suburb of Kingston, a 30-minute drive from the CBD.

In July of the same year, their daughter Mia was born.

Just three months later, in October, they did bought a $ 302,000 lot in Deception Bay on the northern outskirts of Brisbane.

This was his sixth simultaneous quality.

They are in the process of building granny flats behind the two houses in Brisbane and one of the Grafton houses.

The couple make a quarter of a million dollars together.

Mr. Haeri’s wife, now an Associate Engineer, makes $ 130,000 while making $ 120,000 a year.

Mr Haeri said his impressive portfolio of six properties would not have been possible with the lender’s mortgage insurance or LMI.

He used LMI to secure the Brookvale property and both Brisbane.

LMI, in his opinion, isn’t as scary as it sounds.

“People shouldn’t be too obsessed with it,” he said.

“If you have $ 100,000, you could buy a home for $ 400,000 and you’re not buying an LMI. Or you can buy two properties with increasing value.

“These properties, which are increasing in value, will far outweigh the LMI costs.

“Then you can pile up your real estate twice as fast.

“Don’t focus too much on saving a 20 percent deposit.”

LMI is required when you have a down payment of less than 20 percent of the property’s value.

It is a one-time, non-refundable, non-transferable premium that aims to protect the lender from financial loss if the borrower cannot afford to pay back their home loan.

It can either be prepaid or added to your home loan.

Mr. Haeri said some of his loans were principal and interest while others were just interest.

However, for the next year he plans to transfer everything to interest only.

“We take some time off to spend with Mia, that way we have the passive income,” he said.

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Real estate commission structures do need changing

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Earlier this month the editors of the Boston Herald called on the National Association of Realtors to amend a number of rules that they believe are anti-competitive and are designed to keep real estate commissions artificially high.

In response to the editorial, NAR President Charlie Oppler pointed out that commission rates have steadily declined in recent years. The consequence of this decline, according to Oppler, is that the commissions are fully negotiable, which suggests that agent compensation is not anti-competitive. However, a closer look at the commission data actually supports the opposite conclusion; namely, that there is substantial evidence that the current commission structure is against antitrust law.

When analyzing real estate commissions, it is important to recognize that the total real estate commission consists of two components: the broker’s commission and the buyer’s commission.

Because listing agents negotiate their commissions directly with sellers, there are no anti-competitive concerns with this component of total commission. However, this is not the case with the brokerage commission because the brokerage commissions do not negotiate their commissions directly with their buyers like they would in any other industry. Instead, the NAR rules stipulate that when listing the home, the seller must offer a preset, non-negotiable commission to the buyer’s agent who mediates the buyer.

This means that the buyer’s brokerage commission is not dictated by free market forces when the price of a service equals the value of the service. Instead, it is determined by how high the buyer’s commission is in the respective market. This notion of a common price exists because most sellers either from experience or from their brokerage agents know that offering a lower brokerage commission to the buyer would encourage brokers to illegally distract their customers from their offers and towards properties with higher commissions .

The declining commission data referenced by Oppler emphatically supports this characterization of real estate commissions. According to industry news site RealTrends, the average national commission rate has fallen from 5.40% in 2012 to 4.90% to 4.94% in 2020. (For simplicity we assume it is 4.90%.)

However, as explained above, we have to split the total commission into the broker’s commission and the buyer’s commission. According to a Redfin study, the average brokerage commission fell only slightly from 2.8% in 2012 to 2.7% in 2020. It can be deduced from this that the average brokerage commission fell from 2.6% to 2.2% during this period – four times the decrease in the buyer’s average brokerage commission.

It should come as no surprise that the average brokerage commission has dropped significantly over this period. First, the number of active brokers increased by 46% from nearly one million to nearly 1.5 million between 2012 and 2020. It is to be expected that this increasing competition will put pressure on commissions. Second, the average home sale price rose 23% (adjusted for inflation) over this eight year period, more than offsetting the decline in average listing commission. Finally, the increasing adoption of technological tools such as electronic signature software has helped streamline the process.

Therefore, the sharp drop in the average brokerage commission is an indication that free market forces are at play on the listing side. If this were the case on the buy side, we would expect a similar decline in the buyer’s average brokerage commission as the trends described above affect both sides of the deal. On the buy side, the decline is even more dramatic as buyers increasingly find their new homes on real estate websites like Zillow and realtor.com.

The fact that the buyer’s average brokerage fee has changed little since 2012 therefore supports the argument that the buyer’s brokerage fee is dictated by an arbitrary rate rather than free market forces.

Will Fried is a data scientist at REX.

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Fall Real Estate: Tri-Valley market shifting as 2021 comes to an end | News

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Tired homebuyers looking for a break can look forward to something in Pleasanton in 2022.

Buyer behavior changed in the second half of 2021 and is likely to continue into next year, said Tina Hand, 2021 president of the Bay East Association of Realtors.

“In general, homebuyers find less competition when they bid on real estate,” said Hand. “Many buyers are still a bit tired; they have been on the market for a long time and have been much outbid.”

She explained that historically high sales prices have taken their toll and there are simply fewer buyers in the market. Hand said buyers “are still waiting for prices to fall further despite we’ve seen price adjustments.”

The number of pending sales in Pleasanton peaked at 87 in April and then stabilized in May, June and July. Pending sales fell to 57 in August and then to 54 in September. This trend suggests a decline in buyer enthusiasm, which is also reflected in sales prices.

From August through September, the average retail price for a single family home in Pleasanton fell from $ 1.79 million to $ 1.56 million. This change was just one of the few times in 2021 that sales prices dropped month on month.

Hand said buyers are pulling out and sellers are not used to that. When asked how the sellers are reacting, Hand said: “I think they are a bit surprised that in August and early September they are not getting the prices we saw the market is shifting.”

“Sellers had received 15 or 20 multiple bids that were $ 200,000 to $ 400,000 above the asking price, and that doesn’t happen,” she said.

According to Hand, changes in the total cost of living are dampening buyer enthusiasm.

“People are starting to see fuel prices go up, food prices go up. I think that’s another factor in why people might be backing off a bit,” she added. “We have inflation going on and I think that scares people. First-time buyers in particular are a little nervous and will wait and see what happens.

The monthly price changes from August to September are surprising, but do not yet indicate a major shift in home sales prices. The average sale price for a home in Pleasanton in 2020 was just over $ 1.25 million. From January to August 2021, the average retail price was more than $ 1.6 million.

Hand said: “There is talk of a ‘housing bubble’ but the factors are just not there; this is not 2008. What happened then will not happen in 2021.”

Looking ahead, Hand said buyers should be positive with potentially more options. “More inventory in the market will help home buyers moving up or down or first-time home buyers – whatever the case.”

When asked when the 2022 real estate season will start, Hand predicted, “I bet it will start in late December or mid-January. that will make a difference in both residential and commercial real estate. “

Editor’s Note: David Stark is the public affairs and communications director for the Bay East Association of Realtors, based in Pleasanton.

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Real Estate News

Shaq Sells Florida Mansion For 60% Less Than He Originally Sought

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After three years, five agents, and several price cuts, the NBA legend is Shaquille O’Neal has finally made a sale of its longstanding Florida property.

A deal for the huge estate known as Shaq-apulco was sealed for $ 11 million. That was 33% less than the last April list price of $ 16.5 million.

In 2018, Shaqs Spread hit the market in Windermere, FL for a whopping $ 28 million. Months later, the price was lowered to $ 22 million.

The waterfront retreat returned to the market in 2020 with a new marketing strategy and a new price of $ 19.5 million before being dropped again earlier this year.

Ultimately, the property was sold for 60 percent of the original, soaring asking price.

O’Neal realtor Benjamin Hillman of Premier Sotheby’s International Realty explained what made buyers decide and said through a representative, “It was the amenities and expansive lakeside setting that did it.”

He did not want to comment on the selling price.

The huge mansion, which the athlete bought for $ 3.95 million in 1993, has been modified down to the smallest detail. That turned out to be a certain hurdle for buyers.

New listing agent, new strategy

Hillman, the fifth agent to oversee the listing, spoke to us back in April about his revamped sales strategy. His goal: a lot less Shaq.

“I watched this house for over three years and they all walked down the same street, from Shaq, Shaq, Shaq,” Hillman told us about the strategy of previous agents. “But I want to take him out of the picture. I asked that any Shaq items that could be moved be moved. “

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This was a challenge given the “S” branding throughout the 31,000-square-foot interior, sports field, and oversized, custom-made furniture tailored to fit the 7-foot-1-inch star.

However, Hillman really managed to clear out a lot of Shaq’s belongings. In addition, the interior walls were painted white and many rooms were newly staged.

As the photos illustrate, references to Shaq remain: the diesel truck mural, the cinema decorated with Superman, and a similarly branded motor show. The “S” is even engraved in a glass shower door. The indoor basketball court still has Shaq’s name on the hardwood.

Trophy home

Unsurprisingly, Shaqs Spread has everything a superstar could need. The spacious interior offers breathtaking perks anchored by a 1,170 square foot two story great room with a marble fireplace and glass walls.

For entertainment, the manor house offers a cigar room, an aquarium room, a home theater, a games room, a dance studio, an office and a wine bar.

The master suite includes a 900 square meter sleeping area, two bathrooms and four closets.

Luxurious landscape

Despite its highly adapted furnishings, the property offers elements that every luxury buyer will appreciate. The 4 acre area overlooks Lake Butler and offers 700 feet of lakefront.

In addition, the royal residence is in the gated golf club community of Isleworth.

The resort-like facility is certainly a selling point. There is a 25m long and 4.5m deep pool with a custom rock waterfall. A summer kitchen, tiki-style cabana, and hot tub are also part of the package.

A covered boat dock with seating area is equipped with an electric boat lift.

O’Neal, 49, has long since left this huge mansion.

After a 19-year career, he retired from the NBA in 2011. He spends more time in Atlanta, where he works as an analyst for Inside the NBA on TNT.

Benjamin Hillman with Premier Sotheby’s International Realty represented O’Neal. Rob Rahter, a broker partner and specialist in luxury real estate for the Stockworth Realty Group, represented the buyer.

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