Forum Replies Created
Hi Zehra,
where to find the right suppliers for our timber , tiles , plumbing etc , my partner is not from here so he has no idea also
Tell us all where “here” is, and who knows – maybe one of our members might be able to help. ;)
If you are building in Rockhampton, knowing where to buy stuff in Melbourne wouldn’t be a lot of use to you. Do tell us where you are building, so that you get better answers,
Benny
Queensland per se is not the problem – the product you were buying was the problem.
Sorry guys, but I am sticking with my original statement (above). It may APPEAR that Qld was the problem, and there are reasons for that. One common “gotcha” is that Qld prices (locally) are way below similar prices in Sydney or Melbourne. Some marketers use that to pump up their selling price to unsuspecting buyers.
Prices here can appear “too good to be true” so the marketers help to overcome that by keeping the price nearer to “what you are used to”, yet still lower than you would expect. Thus, they seem like great prices.
Be careful when buying in ANY area where you are not familiar with the market. A course in due diligence would be advised. Take “Steps” to find such a course ……
;)
Benny
PS Watch out if you are approached with something like this:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/page/2/#post-5027703Hi Doug,
Whatever you do, DO NOT buy into Queensland unless you want to throw your money away.
Queensland per se is not the problem – the product you were buying was the problem. Sorry to hear of the outcome – but thanks for sharing your story.
Benny
Hi Terry,
Not correct Benny
A valuation is only needed if an existing main residence becomes income producing.
In this case an investment property is moved into so a valuation can’t be used.
The CGT will be worked out on the portion of the time that the property was a rental.Of course – I had it the wrong way around !! Thanks for the correction Terry – and the example helped greatly too.
Regards,
BennyHi Jon,
Welcome aboard this good place !! I can’t help with spreadsheets, but regarding meeting others to learn, here are a couple of links that let you know what is happening from time to time. You might wish to make contact with the two posters who advertise these meetings as I think they also conduct them.They pop up every two to three months, so keep your eyes peeled.
Benny
I think Terry is meaning the property will only be exempt from any further value increases from the time you move into it as your PPOR. But you will likely be up for any Capital Gains above original purchase price up until the date you move in. You will likely need to get a valuation as you move in – gains from that value upward would be exempt as it has now become your PPOR.
Terry’s first words mentioned “apportionment” – i.e. you might live in it for the next 50 years, but the portion of time it was a rental would still not be exempt. Of course, if you never sold it, you don’t have CGT to pay anyway (???)
Have I got that right, Terry?
Benny
Hi Steven,
After talking to a few agents, I was told basically the local council put this phrase on literally every property’s report and it looks like the council put down this as a “blanket to cover themselves as result of earthquakes in Christchurch”.
Hmm, so this is a Council Report then? I had thought it was a Building Inspector’s report….
I wonder what a Council is doing reporting on houses – is this perhaps part of the “new way of doing things” where they might have needed to consider demolition in some cases, and all following the huge disruption in Chch of a few years back. It could be that every house has to have such an inspection and subsequent report. My own sister’s house suffered minor damage back then, but is OK after having had one wall re-bricked. She confirmed there was liquefaction around her place – scarey stuff when it is happening….
In my recollection, Chch was never one for earthquakes – in my youth in Wanganui, a tremor was a more-or-less regular occurence. We would take a doorway each while the ground sorted itself out !!
Benny
Hi Steven,
An interesting phrase for sure. On one hand it might be as realistic as having someone reporting of a car for sale “Possibility of an accident if driven on roads”.On the other hand, if this property was in Chch (or a similar area where that actually HAS happened previously) then it would certainly be worth heeding. Further due diligence needed methinks – approach the report’s producer and ask them just what was meant by that, and how their comment was substantiated.
Is the comment verifiable (e.g. by approaching the Local Council or even local RE agents, newspapers, etc) or is it a bit of “over-reach” on the part of the person writing the report?As a counterfoil, consider a common event in Queensland where any/all builder reports might include a phrase like “evidence of termite activity”. These are so common as to be almost able to be ignored – almost….. But the phrase can certainly scare off someone who is not a local. The truth is that there are a couple of hundred different types of termites, and many that are active in the back yard. But only a few species (less than 20?) that will actually “eat a house”.
Good question, and a bit unusual ;)
Benny
Hi Sarah,
… and welcome to this good place. Just so you know, I removed the second thread you started – so we don’t get people replying in two different threads, all saying the same thing. By keeping it all together, I think you will find it easier to keep track – and so will we.Re the question, I would be looking closer at “buying old and buying well” rather than buying new. With you renovating an older unit over time, you will add value to it. The other option is to PAY for the value that the developers’ add to the new unit instead. That could be $200k more in some areas.
One other thought is that I prefer house and land – that way your owning of the place is autonomous – you don’t “share” the ownership with several other unit owners. Is a house and land in your thoughts at all?
Let’s see what others have to say too,
Benny
Hi Muzza,
Welcome aboard. That’s an interesting suite of questions, but in thinking around them, they lead me to question you even more – take a look at my thoughts:-1. You don’t mention current value or rent of a 2bdr in Wooloowin. But you said $250-300k to lift/expand it to a 4bdr. I took a quick look at re.com.au and it tells me a few things:-
a. That this is a high-value market, thus (depending on current value) it “might” be beneficial to do the reno/expansion – but that would depend on its value now. e.g. If it is valued at $300k now, then by spending $300k it seems you would increase the value by around $500k (good value!). But if it is valued at $600k now, spending another $300k might be over-capitalising. Hey, that is a rough guess, but it is something to think on.b. The stats on re.com.au show me that the Wooloowin market appears to be growing in value – the Median showing for a 3bdr in that area is $807k, but recent sales show $870k. It also says this is a “high demand area” with many wanting to buy there. A quick call to an agent should confirm much of this.
c. There was no median data for a 2bdr – is this a low demand size there? Are the likely tenants all families in that area? Who is renting it currently? And what is the current rent? Data says median is $420/week for a 2bdr, $470 for a 3bdr, but $700 for a 4bdr ????? So, are 4bdr’s in high demand and low supply? That could be a “tick” when considering whether to reno/expand this place. At $700 a week, this could be nearing 5% return instead of the 3% of a 3bdr……
Muzza, a question or two re this quote of yours:-
I moved to the outskirts Redland Bay after buying a business because of not wanting to commute and rent there.
What if it were to prove more financially beneficial to you to buy an investment AND rent yourself? Many do this (search for “rentvesting” to get an idea of how it works). There are several benefits to doing it – but, of course, there are also benefits in owning a PPOR too. The decision must be yours, but seek out all the facts of both ways first. As one example, IF the Wooloowin property is your current PPOR (i.e. you lived there) then talk with your adviser about Tax Exemption for 6 years after moving out of a PPOR. And also ask all around you renting while still owning IP’s – and how that can assist you (and work against you too). The answers could surprise you.
Have a good read of that PM I sent, and the link to the “big picture” topic. There are lots of good posts around PPOR and benefits for and against. Check the Index on the first page of that link.
Feel free to pop back to either add more info, or to ask more questions (we don’t bite unless you ask us nicely…. :p )
Benny
Hi Ithelien,
One part of your due diligence would be to have a Building Inspection done, yes? For the few dollars it takes, having their report on THE actual house would be good to have for your peace of mind.I believe there could be extra charges for “more than usual” inspections – e.g. If you required them to take a long, hard look at the roof from on top and under it (climb into the ceiling manhole and inspect). Maybe ring a few to get quotes re their charges for a basic inspection + roof (on top and under it) + any other “specialised areas” you might have concerns with (e.g. water issues, foundations, etc).
The way I see it, even spending $1000 is money well spent if it either saves you from buying a “pig”, or it allows you to sleep at nights, knowing that the house you are buying is sound. Ask them too about what guarantees they might provide with their report. Probably very few (if any) but it pays to know these things before you pay for them eh?
Benny
When you said about it being quicker to pay down our mortgage using equity growth, do you mean equity growth in an investment property obviously?
Correct. e.g. let’s say your wage has a bit of excess and you can find an extra $200 a week to put toward your mortgage. Roughly, that’s $10k in a year. Pretty good, right?
But what if you invested it in an IP that you manage to buy for $20k below market, and you spend a bit ($10k) to add value – like, paint, a new stove, carpet, whatever – and you can add a further $30k of equity that way. You’ve just created 5 years worth of your “salary excess” in a few months, haven’t you?
Of course, what you do from there has yet to be determined. You might want to sell (but then CGT might play a part, and RE commission, etc) or you might rent it out for a better rent because it now looks so much nicer. Or maybe the extra equity can be borrowed against to buy #2 investment – and do it again. That $50k could be a large chunk of a deposit on another, right? And far quicker than attempting to “save” a deposit, right?
This is where knowing WHY you are doing something, and just HOW to do it for best effect becomes important. Suffice to say most can create wealth more quickly than earning it. But one must also keep a weather eye on the market as a whole – including financing and any law changes relating…. etc.
So there is a lot to it, but then a lot of good that can come from it too. Softly softly, and check your assumptions with those who know prior to implementing things.
Benny
Hi Barlow,
I’m not sure just exactly what you mean by this:-We are now looking at possibly doing a house and land option
The main thing is this – if you are thinking of going to someone who is going to sell you a H&L package, DO read this link first:-
https://www.propertyinvesting.com/topic/4408921-anyone-heard-of-asset-partner-in-perth/#post-5043546Especially see the link within that link that talks of “Buying off-the-plan is dumb!!” It might sound harsh, but hey, we all need to be aware of what is in play when taking that path – and Jason has spelled it all out in that link.
But, another way would be for you to purchase the land, then approach a builder and build a house on it. That is a whole different kettle of fish.
If you are wanting to pay down a PPOR, I think Equity Growth can do that a whole lot quicker than paying it in after-tax dollars via your excess in salary. But just be sure that the path you are choosing really does do the job that someone says it will do (i.e. reread the link above).
;)
Benny
Hi Andy,
I can understand your wife making that comment, and from one angle she is correct (i.e. property investments are typically long-term investments). Perhaps the point she is missing though could be this – if an investment sours, it is often better to “cut your losses” than to hold in hope. Without any actual numbers though, an indication either way is impossible.Think in this direction though – if the current investment property is costing you money, and its short-term future for growth and/or an income increase are close to zero, would you be better to turn any remaining capital in another direction (one where it will PAY you to purchase it?)
With your wife now not working, ALL of the costs that aren’t covered by the rent are coming out of your dollars, and these could likely be after-tax dollars. See, if your name is not on the title, you might not be able to claim the costs against your wage. But then, I am not an accountant, so maybe there IS a way that can happen.
What I am endeavouring to do is to point you toward working out HOW many dollars it costs you to keep it – if too many, the prospect of a sale should put its hand up just with the numbers.
The capital loss itself can be offset against any future gains (but maybe not by you – only your wife – but again, an accountant should help you with any planning around this). Find a good accountant if you don’t have one already, and seek out an adviser to help plan “the way out” from a finance/investment perspective. Good luck on this journey, and do come back with any further queries and/or an update or two,
Regards,
BennyHi Lenka,
It would be good to provide a bit more info re “where you are”. I did a quick Google for “Occupational Certificate” and had a number of possibilities pop up. A couple of these mention NSW – is that where you are from?One in particular mentions Bushfire Consultants issuing an OC after an inspection by them. Is THIS what you are wanting to get? The words themselves (Occupational Certificate) could apply to a myriad different possibilities.
Benny
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Benny.
Hi Kenif,
Usually, water only flows downhill. One exception would be “capillary action” (think of a sponge, which can actually draw water UP). Now, if the water from your courtyard has been fixed previously, is it possible that the problem might be porous materials drawing water UP from underneath the building – up the walls, or through the floor from UNDERNEATH, rather than from that higher level that you have already attacked. That action may not be common with concrete floors, but I have heard of walls acting this way (damaged or non-existent damp course laid when constructing them).Fixing any problem comes down to identifying what really is the actual problem, and THEN fixing it. e.g. Your courtyard is higher, so you put down membrane to prevent that higher “courtyard water” from entering – but, what if you have a hill behind you, and water comes down, seeps underground to your lower level, goes UNDER your courtyard and the new membrane, wets the ground beneath the building, and is then drawn UP the walls via capillary action? I would think that WOULD be a Body Corp problem.
Could it be that the first time you spent money to fix it, it WAS done well – but maybe didn’t fix the ACTUAL problem, or maybe didn’t fix ALL of the problem.
For water issues, I’d suggest tracking down someone who actively advertises themselves as one who understands hydrology and can provide a shortlist of their successful fixes involving water. Or find someone who can recommend a really good builder who might also have a vast experience of putting right any water issues (even if not calling themselves a hydrologist).
I think I would make an effort to talk (in much detail) with other owners who have courtyards too, to glean what they might already know. Good luck with it Kenif, and I wish you good fortune in fixing this persistent problem,
Regards,
BennyBrian,
I think you should take that settlement document back to the conveyancer/solicitor who DID the settlement, and ask them to explain to you just what went where, and who should now be paying the rates. I am guessing here, but it seems to me like you are endeavouring to understand the settlement adjustment document on your own. I found I needed a good stiff drink and a good hour to “make sense” of those things. It is all “easy peasy” to a solicitor, but to a lay-person it is the stuff of nightmares trying to make sense of them.If I am speaking out of turn here, my apologies – but I recall spending quite some time “deciphering” that kind of stuff, and really having a hard time doing it.
But, as Terryw says – the Council needs to be paid, and you are the new owner – so, it is up to you to “make that happen” whichever way that turns out to be. Good luck,
Regards,
BennyHi Brian,
“our vendor did not pay the council rate that we have agreed to the settlement adjustment sheet.”
Now, I am not someone versed in all the ways of property and the legals surrounding them, but I have a bit of experience. Still, if others more wise can offer extra thoughts, please do so.
AFAIK, settlement involves a lot of agreeing to figures and the presenting of cheques from one party to another. And I would be asking your conveyancer (or solicitor, whomever did the conveyancing for you) just HOW they managed to complete settlement with monies still outstanding from one party.
Your solicitor is the key to all of this I believe, and should be the one answering you, as THEY are in charge of settlement on your behalf. The buck stops with them (I believe). Ask them to explain it.
Benny
@terryw – is there more to it than that?
Hi Kenif,
owners corp say courtyard area not common property, my courtyard so water leaking through walls my problem.
Hmmm – OK, so this is a private courtyard then. Are you alone in having your own private courtyard, or do other owners ALSO have one, and, most importantly, are THEIRS leaking too?
What I am getting at here is this – if the problem comes down to the construction of the building itself, as ALL courtyards display the same problem, then it would HAVE to be a body corporate problem wouldn’t it? But then, that is just another opinion.
Can you ask around those other owners who appear to also have a courtyard to learn whether they do (or do not) have this problem. And, if they did have the same problem, but managed to fix it, who did they employ that seemed to “do it right”? Good luck – sounds quite stressful.
Benny
Hi Hem,
I’m sure there are many good companies out there. Main thing is, what are you wanting to buy? If you don’t know, then others might have a plan for your money (or Equity). Watch out if ANY company follows this script:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/page/3/#post-5038486But mainly, what are your goals, Hem? Are you a Growth Investor, or an Income Investor? Will you buy and flip? Or Buy, renovate and Hold, or Buy split and develop the block of land, etc. Or do you want to do business with someone who wants to sell you a new house? i.e. You want it ready-made with nothing to do except to bring in rent. That is valid too – but there are some things you need to be aware of, BEFORE going down that path – try this topic:-
https://www.propertyinvesting.com/buying-investment-property-off-plan-dumb/I hope those links have some thoughts for you that help you to make up your mind. Feel free to come back with more questions (perhaps in a new topic, so this one can remain about “Asset Partners”).
Benny
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