Forum Replies Created
Hi Josh
Definitely no need for an agent if there is already a buyer. I sold my own property a couple of years back and the hardest part was getting people to your property and negotiating. So the first of these is done you just need to do the second.I'd suggest you offer asking price minus half of agents fees so that the buyer and the seller benefit
When I sold my place I just googled how to sell your own property and there were plenty of websites giving the easy steps required.
Thanks Terry
question with the LOC, how do the repayments work I see some places saying no regular repayments are required as long as it doesn't go over the facility limit, but other places saying a minimum repayment is required. Also in the case no regular repayment is required I'm assuming the interest just gets deducted from whatever credit is available as long as it doesn't hit the facility limit.
I think I might be mis-understanding the concept. The 2 scenarios were:
1. setup an LOC lets say for example $100K
2. take out an interest only loan of $100K using equity and put that $100K into an offset account attached to the new interest only loan until the funds are needed and withdraw from the offset account when required.
In both scenarios this would be for deposit/costs and 2nd interest only loan would be set up for balance.
Maybe this 2nd scenario is not possible and I have misunderstood
Thanks Terry
My broker was mentioning an Interest Only investment loan with an offset account to access the equity as opposed to using an LOC so just wondering what the difference/benefit isfor each.
Intrigue wrote:Stupid question. If I have 10,000 sitting in an offsett account for a loan of $300,000 @ 6.54.How much interest am I saving as a result of having this 10k sit there? Is it as simple as 6.54% of $10k equals my savings each month?
My understanding would be that your monthly savings would be 1/12 of 6.54% of 10K
OK, we plan on living in this house for the next 20 odd years(until the kids leave) and hopefully will pay the loan off within 10-12 years(quicker the better) and have no plans in renting it out, will it still be a problem?
My lender had this on thier website:
- An offset account is a feature of some mortgages. It is a savings account attached to the mortgage, with the balance used to offset the interest charged on your loan.
- Some lenders, such as <lender>, have a free redraw and additional repayment facility on their variable rate loans which have the same benefits as an offset account. Deposits can be banked into your loan account and the loan interest is calculated on the daily loan balance (after the deposit) but the extra funds are classed as available redraws.
Thanks Terry for your advice. At first we didn't quite understand too much about cross colaterallising so certainly will not be crossing anymore just hope we can sort out what we have at the moment to allow us to proceed with obtaining our next IP.
Thanks for the idea regarding the offset. Our lender doesn't have an offset as such but the y have unlimited free redraw/additional payment facility which acts as an offset so will definitely be looking to put our rent and other spare funds in here
Hi Lobster
We self manage one of our IP's as it is within close proximity of where we live. We have managed this property for 7 years now had a couple of issues ealier on but have had the current tenant for 5 years and she would go close in my books to the perfect tenant. In the end if the IP is within close proximity I think it is worth self managing.As for our other IP we bought in Tassie and required a PM and have been very unhappy with the service. Fees differ from state to state I've heard it is around 5-6% in Vic we are currently paying 8% in Tassie but I need to constantly contact them if I ever need any information, they never contact me if the tenant pays rent late I always have to call them to ask why the payment hasn't come through to our account. I realise it's probably just a bad PM and if I searched around could find a better one just makes it a bit hard I'm in a different state and feel ripped off paying them the 8% commission for what seems like very little work on their part.
So a good PM is hard to find as is a good tenant so if you don't mind the grunt work in advertising/finding a tenant which hopefully won't happen too often and is the hardest part of self managing then I reccomend you do it yourself
Thanks Terry
My thinking would be that rent would be piad into the LOC and interest payments from our Interest only investment loan would also be taken from the LOC. Might have to read a bit more about the concept, would like to see if I could use the same LOC for multiple investments.
Starting to undestand this cross collateralising more, my concern is we would like to start preparing to buy another IP if our current 2 investment loans are cross collateralised at 80% LVR and we wanted to create an LOC for a deposit on a new IP would that mean we would need to pay LMI on the current loans or would we just not be able to create the LOC because of the cross.
Thanks karen will buy the API and have a look
Have been doing a little bit more reading of threads on this forum and it seems our loans are cross collaterallised as recommended by our Mortgage broker to reduce the LVR to 80% and avoid LMI
My question now is what is the alternative to this and if we want to buy another IP are we going to have problems?
Thanks Richard
Just another question, always hear about paying fortnightly is a lot better than paying monthly. Reading up about it a fair few sites say the only benefit is if you divide your monthly repayment by 2 and pay that fortnightly effectively forcing you to make extra repayments(approximately an extra month's payment over the year).My question is does your fortnightly repayment immediately go on to the loan and therefore effecting interest straight away, or does the bank still make a monthly payment onto the loan and therefore interest is only effected at the point that monthly repayment is made.
Thanks
ChrisYeah my Mum done the same thing. I believe she had it written up in the contract that for a certain period before settlement she would rent the property for a certain amount of dollars per week
My thinking was that building/pest inspections were not tax deductible whether you end up purchasing the property or not, WJ Hooker are you saying you are able to claim inspection costs in you purchase the IP??
deirdre browne wrote:anybody know who pays water usage and rates in melbourne rental properties – is it the landlord or tenant?In Victoria in a set of flats/units/town houses where there is not a separate water meter per unit the landlord is responsible for paying for rates/service charges/usage. If there is a separate water meter per unit or the rental is a house then the landlord is responsible for the rates and service charges and the tenant is responsible for usage where the bill is sent to them directly.
Do you have a body corporate if so you should be able to find out from them if the unit is owner occupied or rented. If it is rented you should also be able to find out the Real estate agent then you can submit a complaint with them. I think thats all you can really do it is up to the agent/landlord whether they kick them out, if they are owners then I think there is less you can do.
Section 213 and 213A of the RTA seem most relevant to your situation:
http://www.austlii.edu.au/au/legis/vic/consol_act/rta1997207/index.html#s86
Was the security deposit submitted to the Bond authority? If so(as it should) I believe you need to submit an application for some of that bond to come to you for rent in arrears
renovations would be deductible via deprectiation, best to get a depreciation report done
My guess is that it is not binding until the tenancy agreement is signed, I would have thought that would be signed with the collection of the bond.
Best place to look would be the RTA which you can find here:
http://www.austlii.edu.au/au/legis/vic/consol_act/rta1997207/index.html
Hi, am also a new poster and have found some very useful tips and hints on this site.
My wife and I bought our first property in 2001 a 2 Bedroom townhouse for $100K as our PPOR. We lived in it for 2 years then it was getting too small so bought a 2nd property a 3 Bedroom house for $260K. We moved into this property and rented out the townhouse.
After 4 years this place also was getting too small and we debated whether to renovate or sell, after getting ridiculous quotes to renovate decided to sell and move out further, so we sold the property ourself for $315K and bought a 5 Bedroom for $380K a bit further out.
We have now been in this property for just over 2 years and with the way property prices and interest rate were earlier this year decided to buy our 2nd IP a 3 Bedroom House which we got for $160K and already had a tenant.
Where do we want to get to? In a couple of years would like to be able to get another IP and continue to build from there
Lessons learnt so far:
When you get a good tenant do all you can to keep them. We had 3 tenants in 2 years 2 of which were nightmares(one late with rental payments, another having massive parties). So when we did get a good tenant which has now been in our 1st IP for 5 years I have only raised the rent twice and only a total of $28 p/w and any repairs which have been needed have done them ASAP. Good tenants are hard to come by!Also I'm a big believer of doing things myself if I can, we manage the IP that is close to us ourselves and we also sold our 2nd PPOR privately, it not only saves a bit of money but also teaches you what's involved in the whole process which for me was worth it.
My guess would be that it would be 4 loans:
1. Std P&I (with offset) for PPOR, 2. Other Equity Manager for deposit and costs & 3. Equity Manager which is used for deposit of IP 4. IP loan (Interest only)
The interest on loan 4 is tax deductible.
I done something similar to this except I didn't want to have the Equity loan hanging about after purchase so I consolidated it into my IP loan, in doing this though remembering at tax time that only the original portion is tax deductible
