Forum Replies Created
No you don't put 10% down for interest. That comes after the cooling off period.
Normal is .25%.
You don't have to have a reason. Just say you want out. Lose your .25%, walk away.
For future reference only sign a contract if you REALLY intend on buying it.
You are obviously not doing your DD. There are good and bad areas/streets in Mt Druitt. I don't buy in the dodgy areas. I only buy in streets where there are not too many DOH houses left.
I'd be interested to know where you purchased. PM me if you like.
We have AMAZING tenants in our Mt Druitt houses. Can't fault any of them. Pay on time, keep the houses immaculate and we only here from them if something is REALLY wrong. Some of them are WAY better housekeepers than me.
We are VERY picky because they are newly renovated. We have lots of people wanting them as we do quality renos. We have rented them all straight away. No-one has moved out. .
Yeah. A few in Mt Druitt (but not most). Mainly the reno ones. Ex DOH. Instant equity (well after 5 weeks) and our portfolio is costing us nothing to hold.
When we move into buy/reno/sell we will look elsewhere though.
Nadine what do you mean by- "We are keen to share the knowledge through a face to face course"?
We have fully renovated several properties ourselves. We do most of the work ourselves and typically spend 5 weeks in and out (with working as well).
We haven't sold any though. We renovate, giving us increased equity (revaled some to withdraw equity) then rent as they are then CF neutral or positive.
I agree Steve. My first thought when I read your title was "those that have a go".
I've met some amazing "ordinary" people that have just got of their behind and had a go.
I've always been a bit of a procrastinator. Meeting people like this gives me a wakeup call to get moving.
Pity it took me so long. In the last 5 years I've achieved more (financially) than in the rest of my life. Purely motivated by seeing others "do it". People that get there even when things get in their way. People with the right attitude to make it work.
And as you mentioned it's not all about investing. I see my kids and other young people embrace life, take the bull by the horns and get out there. I teach young children and they inspire me too. I see 5 year olds doing amazing things that I would never have dreamed of attempting when I was even an older child. They are the leaders of tomorrow.
I did this once and being a novice didn't do it right.
The owners actually asked me if they could do it (it had vacant possession on the contract). I said yes thinking the same as you.
It turned out they knew the leasing agent who just let it to the first ones who came in. They were hopeless, wrecked the carpet and I asked them to move out after 12 months. I actually rang the agent asking for input into the tenants and she said they can lease to whoever they like as it's their house. I stated they'd be hard pressed to get a tenant for 4 weeks as I had vacant possession. I should have backed out then and there. Oh hindsight!!!
The agent charged me all the leasing fees etc after I took over. I ended up changing agents.
Personally I would wait. Ask for permission to advertise for a tenant and let them in to look. Then you can still get a tenant from day 1 with the agent you want and the tenants you want.
Have you actually worked out how much you will be saving? If you give a discount I think nothing.
So you get $500? a week early so you will be $500 ahead each week so you are saving $500 x 6%pa = $30???? WOOOHOOOO!!!!
Scott No Mates wrote:Never been advised to do it – I may have an equitable interest in the property but until full restitution is made (or a massive price adjustment provided) there'd be no way I would be able to settle – 1) bank would pull finance 2) my insurer would not pay out on something that I didn't own 3) property is not in the same condition as when inspected and contract agreedAnd so begins the battle to get your 10% back.
And insurance WILL pay if it is not insured by the owner as you have a vested interest in the property.
If I want the property for the sake of building insurance for 5 weeks ($60?) I'd rather have it.
Welcome.
Careful it's addictive!!!!
Scott No Mates wrote:Having to take out insurance prior to settlement is a Qld thing. Not the done thing in NSW>My solicitor recommends it (in NSW) as a safeguard really. If the house burns down and the vendor has no insurance there will be issues with settlement. You won't want to settle, they will, lawyers make lots of money.
jmsrachel. Yes they are a lovely family. It was their dad's house. They were happy we loved it and are moving into it. They were even still planting veges in the garden months after it was listed for sale. Even after exchange they still watered and weeded the garden etc. Rare indeed.
jmsrachel wrote:Also, you must start paying rates, water, etc from date of contract not settlement.Not MUST. I'd say can. Depends if the vendor asks for it.
I just got early access. Paid rates etc from settlement. They even left the electricity on until settlement as they were coming and going moving stuff out.
I always get insurance as soon as cooling off finishes. If the vendor doesn't have insurance yours will kick in. Better to be safe I say.
19 years ago!!! Just had a MASSIVE garage sale and clean up (that was after making the kids take their stuff). Another council cleanup organised for next week. It just goes on and ion and on.
It feels great though to get rid of useless stuff. I just looked at things and asked "do i want to pack this in a box to take with me then unpack at the other end?" That made it easier. I found stuff in the back of cupboards that I forgot I owned. Found some nice gifts I had purchased to give to people for previous Christmases so some of my Christmas shopping is done at least. LOL
When my mother in law dies we didn't have to buy soap, cleaning products, shampoo or conditioner for over a year. She had 65 cakes of soap in a globite suitcase in her linen press.
Yeah that's true.
Do you want to take her inheritance?
I think you should be entitled to some due to doing the reno. I know you are talking legally but are morals coming into it?
Double check. I just bought a property that I will divide to make a granny flat. They said let them know when that happens so they can change the insurance. It's not 2 separate buildings though.
Just go somewhere else if it's not possible. Plenty of people have dual occs so someone must insure them. You are insuring the house, not the land so I would assume 2 different building insurances.
If it's an IO loan why is there extra money in there? You can do it though if the money is there. It is all investment related so no crossover problems.
I have a separate LOC account that all rent goes into and interest (for other loans) and bills get paid out of. I find this keeps everything tidy and easy for accounting purposes. If I need to check up on a bill I only have to check one account.
The stand alone loans just have interest going in from the other account and interest out (to the bank) each month so it always stays the same.
I usually ask Real Estate Agents about rental preferences when I renovate. For example carpet, tiles, floorboards, bath, shower, furnished, unfurnished. Also look at what's for rent in your area.
mattsta wrote:I personally do not buy at auctions. You have to buy a property fast and I like to research prior to buying. Also, I do no like buying blindly and end up paying higher price than if I was buying privately.That doesn't make sense. You have the same opportunity to do research as with any other purchase.
You view the property, do your research, get finance sorted, do B&P if you want, go to the auction, bid. Nothing blind about that.
And if you end up paying a higher price that just means you have no self control.
I personally love auctions and have bought most of my buy, reno, rent properties this way. Lucky for me lots of people think the way you do. Less competition for me.
Although lately with all the hype with reno shows and the buzz in Western Sydney there are lots of newby's out there and many are going over my limit. Mind you my limit is low. I need instant equity and CF+ after reno.
xdrew wrote:Kevreno … i set up an account for each single investment, though it may be several apartments within the investment. That allows me to keep precise accounting records for each investment, based purely on bank statements. It also allows me to enumerate who has paid and who hasnt paid based on the entry in the account.For tax purposes it also provides a single set of entries that need to be chased down when looking for rents receipts and expenses.
For record keeping purposes i can go back over the statements and work out what was spent on what before i approach my accountant.
OMG. That would mess with my head. I do have loans separate but I have one account that the rent goes into and bills (including interest) are paid from. That way it's easy to keep track of ins and outs. I put all transactions on a spreadsheet for each property.
I looked at a unit with a similar set up. The unit I wanted to buy was at the front of the block. The block at the back was high rise with lifts and a pool. I dropped out for the exact reason you are having problems with. I know pools and lifts are expensive and I didn't want to pay for them.
It would be major to split the strata in two. You'd have to get a majority vote and all the people in the apartments won't likely vote for it.
Plus where do you draw the line of ownership? or are they 2 distinct and separate areas (no common driveways etc?
If it's all under the one strata then that's the way it is. Sorry. It usually goes on property size.
If it was the other way around would you offer to pay more?
