Forum Replies Created
Thanks Go Go Girl and Shaztaz, for your support along with some of the New Zealand jokes I’ve heard I also enjoy Irish jokes, male jokes, Scottish jokes, female jokes, animal jokes etc,etc, etc,.[biggrin][biggrin]
Martin
Hi Torachan,
This was not intended as a racist slur. I am a New Zealander and I have heard all the jokes and dont take offence to the majority of them, I didnt believe this was inflammatory. I have also heard the jokes New Zealanders make about Aussies.Plenty of my friends are also Maori.So sorry you take everything so seriously.Martin
Hi Quiggles,
Thanks for your response.What sort of set up do you require for asset protection and purchasing over in USA.Thanks MartinMartin
Hi Betterbiz,
You are right caught me on a typo. The figures however are still correct. On a $270000 interest only loan at 6.5% the repayments will be $337.50 per week.[biggrin][biggrin]Martin
Hi All,
I’m from Bendigo, Victoria.[biggrin]Martin
Hi Serf,
Based on your figures and my assumptions.If you purchase a property for $360000 and borrow the whole lot including costs you would need to borrow approx $370000. At 6.5% interest only you repayments would be $337.50. Management fees in Rocky are approx 8.5% so management fees will cost you approx $33 pw.Rates are approx $2400($46 p.w.), therefore at the very least property will be costing you $416.50 pw. Add to this insurance, maintenance etc. I dont know if it is booming at present, but the properties my wife and I purchased there 2 or so years ago including a duplex have certainly risen in value. Weve never had a vacancy. Good luck on what you decide to do. MartinMartin
Hi Mark and Dot,
If you have a mortgage of $290000 and are the properties are returning you $460 pw less costs the properties are returning you $100 pw positive based on interest of 6.5% interest only. This is not including associated costs like rates, insurance,management fees etc.So it should be almost cash flow neutral. I would keep the properties as it is presently fairly hard to find these types of deals, and if it isnt an interest only mortgage I would change it to one.Good luck on what you decide to do.[biggrin][biggrin]MartinMartin
Hi,
I have a defence force property okay the positive points 1.They always pay on time in fact in most cases a few days early.
2.The tenants have been fantastic. They take good care of the property.
3. Never have too worry about the minor stuff as they do the repairs of that sort of thing.
4. In the 18 months weve owned it never had not so much as one phone call regarding a problem.
5. Each year they do a rental review since weve had it rent has gone up by $30 pw
6. They repaint inside after 7 years
DISADVANTAGES: 1 When it comes to selling it, you have too coordinate opening times with DHS which can be a pain in the arse.
2. High management fees.
I am basically for it as long as you due dillagence and the figures match up.
Martin[biggrin]Martin
Hello Gabbo,
If you have the property over 12 months you could use this example.
Bought 2002 for $125000 stamp duty $6000 capital improvements $10000 legal fees $1000.Sold 2004 for $225000, agents fees $9000 solicitor cost $800.
Therefore first add all costs together which adds up to $26800.Add this onto the $125000 and this adds up to $151800. Sell price $225000-$151800 equals $73200 profit. Now halve this $36600 and this is what you will be taxed at depending on you marginal rate.[biggrin]MartinMartin
Hello Kate,
My suggestion is to keep the PPOR that you have worked so hard for, sell either 1 or both of the IPs, hopefully you have made some capital gain put the money into the PPOR to reduce your mortgage. By doing this you will pay less on your mortgage and also save money by not losing money on your IPs. Hopefully this will enable you to spend more time with your family. Once you have done this hopefully you will see how much money you have and then go looking for property again. Good luck. I have 2 young children so I know what it is like to live on one wage for a while. Things do sought themselves out. I didnt think we could live on one wage but it is possible as kids certainly put a dent in your social life which helps you in the hip pocket.[biggrin][biggrin]Martin
No problem Kylie,
We certainly sleep better knowing we have reduced our debt a fair bit and now have a bit of a buffer. The banks certainly like to have themselves in a win win situation so the way they check servicability is stringent. There are many strategies out there pick the one that is most comfortable for you. Its always good to know you have the ability to purchase if a good deal comes along or when an unexpected event comes along. Many people are flying close to the wind at present and if circumstances change it could be a disaster ie rates, tenancy problems etc.Good Luck. Make sure you do whats right for you and not what people think is right for you.[biggrin]Martin
Hi Kylie,
Just my 2 cents. We had the same problem with an amazing gain in equity but problems with the bank regarding serviceability. We had huge debt,including our PPOR.What we decided and this is purely our choice was to sell one of our properties to reduce debt on our PPOR. Of course you will have to pay capital gains at tax time.This freed up some money to clear up our PPOR mortgage and also got rid of a property that was costing us each week, the following tax year we sold another one this cleared up the mortgage of one of the investment properties and got rid of another property that was costing us money. We are now pouring all our money into the remaining investment property mortgages. We are now very popular with the banks, still have good equity and now have income flowing from the investment properties.We are still looking for properties and hope to purchase in the new year.[biggrin]Martin
Merry xmas everyone,
2004- Added extension to our PPOR and re-painted inside, carpeted,lino , new kitchen and bathroom.Love the extra room but took a whole lot longer than expected.
-Eldest child to prep. has done well.
-Sold two properties, having difficulty settling one of them as couple who bought separated. The other one should settle in Jan 2005.Rough gross profit $150000.
-Repainted inside, new kitchen of investment property.
2005-Go to New Zealand and purchase an investment property.
– Go 48/52 at work ie Increase my holidays by 4 weeks.
-Holiday to QLD with family in Jan
-Pay off PPOR
-Reduce debt on an investment property in Rockhampton.
[biggrin]Martin
Hi Robert,
The solicitor acknowledged to me that they had a close working relationship and that he had no problem with me seeing another solicitor to deal with them. At present concentrating on the purchasers and then will look at the other parties involved. Just had news today that the husband is still keen on the property and may still try to purchase same with wife and then the wife will transfer the house into his name. Small chance but who knows. Martin[biggrin]Martin
Hi all,
Back again. The solicitor I am presently using was able to obtain from the real estate agent a blow by blow account from the agent what he did in response to trying to obtain the deposit from the broker. Dating from approx. 12 Nov to settlement day 17 Dec. His account of his attempts to get the deposit bond after the agreed extension to approx 27 Nov by us was purely with the broker, he did however report his difficulties to our conveyencer on the 13 December. In his report there is no communication to us after the Nov 27 deadline for finance approval. I mentioned the agent sounded chummy with the broker because the real estate agent provided my solicitor with a copy of his emails to the broker as proof he was chasing the deposit. From the material in the emails ,they seem to know each other well.To Clint, if I had of known there was trouble with the deposit I most likely would have informed them to get their act together by a quick deadline of 2 days or I would hold them in breach of contract and follow that path. This would hopefully get them off their backsides and if not then I would know we had a problem a lot sooner.The case I have with the purchasers is very clear cut whether I see the money or not who knows. If I dont see the money or even if I do dont worry my attentions will then turn to the agent and perhaps the conveyencer but first one battle at a time.[biggrin]Martin
Hi All,
Had solicitors appointment yesterday, the solicitor has drafted a letter I think it is a recession notice that gives the purhasers 2 weeks to settle the property of course as each day passes the are being fined due to late settlement. Once the 2 weeks is up my wife and I have to decide whether we will keep the property or sell it again.If we decide to keep it we have to get an independant valuation on the property and depending on what the valuation is the former purchases are liable for any costs associated in bringing the deal up to $225000 ie If valuation comes in at $219000 they will be up for $6000 plus my legal costs plus lost rent plus the fines imposed and any other justifiable out of pocket expenses. If we decide to sell we have been advised to do it by auction as this shows proper market value ie all hell could break loose if there is seen to be any hanky panky ie selling to a friend for far less than it is worth.In any case the purchaser is liable to ensure that I achieve a price of $225000 plus any costs that are incurred by me by the breaching of the contract by them. This is where the deposit comes in and would cover these costs but since that is not there I have to chase them for the money. At present there is no indication that they will settle the property. As for the real estate agent. My solicitor obtained a detaliled summary as to the lengths they went to to secure the bond. The agent appears to be good friends with the broker and although they had regular contact between each other he did not secure the bond. The broker discovered 2 days before settlement that the deal wasnt going ahead and had no intention of releasing the bond due to same. At no time during the chase for the bond did the agent contact me to inform me of the problem. The solicitor informed me that they have indeed not handled the situation very well and I may have a case for negligence but as any one knows negligence can be hard to prove as I have to show that there actions caused me damages ie they will argue that they did indeed try to get the bond and and no matter of badgering were going to get them to release the bond. My wife and I have decided to first chase the purchasers for monies owed and then decide to chase the real estate agentafter this. It has been a learning process.[biggrin]Martin
Hi all,
10% deposit was what was offered by the purchaser and what was agreed to by us. There is no hard fast rule what deposit you leave it merely has to be agreed to by the seller.Martin
Thanks for your help,
I indicated to the conveyancer this am that I would seek legal advice about this matter, I found it a little strange that she organised the appointment for me with their solicitor, Monday 2.00 pm without me asking her to. I thought she was acting in my best interests and she justified it as she could forwrad the file to him directly,now I’m thinking it maybe for different reasons.(Its not paranoia if you know somebody is out to get you)[jerry]Martin
Thanks Brahms,
I just have to clear up one point the person who was handling sale was a property conveyancer. I’ve never dealt with deposit bonds before whenever I have purchased a property I have used cash and given it to the agent. Thanks for your advice. The conveyancer has very close ties to the solicitor(I think the solicitors are the overseerers of this business) I’m seeing on Monday in regards to this matter I hope after reading your comments that they are not out to protect their arses?[blink]Martin
Thanks Robert and Brahms,
I have an appointment with a solicitor on Monday, definately not happy with the agent as she should have been chasing the bond hard. Have had some advice. My sales contract with the couple is fairly easy to claim as they will be in breach of their contract. This I can accept as noone can forecast a separation my beef is with the agent who has not insured me for this possibility ie the deposit. Basically they have been holding a $225000 property for 7 weeks now going to stretch out to nine weeks minimum for $500. Do you think I have a civil case against the agent/agency? The problem I have in going after the couple is that already I think there is going to be one hell of a property dispute and no doubt I will be on the bottom of all this. My solicitor had no idea until today of the problem with the deposit as the agent handles the deposit dont they?Martin
