If the property is what you want – could always add a condition to contract requiring owner to secure council approval before settlement. May drag out settlement but ………. if the numbers stack up.

Given the structure is a deck which carries people I wouldn't touch it without said council approval. If the vendor does not want to get approval…[Read more]

Hi Shell,

Don't ever forget the sleep at night factor when investing.

I'll challenge you a little on your comment, "ïf it ain't broke, don't fix it" and say to you keep your eyes open for opportunities that are out of your normal sphere.

I don't believe the change of strategy was the reason this deal did not work out – I think it was the choice…[Read more]

Or change the asking price.

It is often more cost effective in the long run to drop a few bucks rather than extending your period of vacancy.

Drop $10 and lose $520 over the course of the year – how many weeks vacant before you lose $520?

Hi Prudence,

Retirement units are generally harder to finance and a larger deposit may be required.

You will also need to check to see what sort of net returns they give. On the surface 12% sounds terrific but there are often large and ongoing costs incurred which erode your profit margin – this making the ROI less attractive.

On a side note…[Read more]

Hi Michelle,

Are you intending to borrow the lot, inclusive of deposit and purchasing costs?

If so I was just looking at the numbers of your proposed purchase and they seem to be contradictory to your stated aim of having "decent returns to make us around about cashflow neutral"

Note I have assumed full borrowings and no cash deposit…[Read more]

Hi RR,

Given you are not ready to be tied down consider a renting type option (Eg. studio unit, one bedder, board with others) to take care of your residency.

Then look to use your cash in some form of investment strategy.

For what it is worth I would try and keep the maximum cash available in an offset account so you retain flexibility over…[Read more]

For ball park I use 5% of purchase price. This is inclusive of stamp duty.

For accurate stamp duty assessments go to the relevant state government website. All states have different rates & thresholds and ways of calculating the amount payable.

If you are buying in a trust – that amount can be different again in some states.

Isn't it great that we live in a society where some people always look to blame others.

They have drawn a blank with you and now they chase the real estate agent.

The heart of the problem lies in the fact the purchasers did not get correct legal advice, did not use a qualified building inspector all to save a few bucks.

Really, some people…[Read more]

Hi Kara,

Some other things to consider are;

1. which location is most suited to your (potential) clients?
2. are there complementary professionals in both areas?
3. would an older/newer property be more consistent with normal expectations of premises in your health field?
4. is the population moving thus making one locality more desirable, long…[Read more]

Hi Mosic,

Agree with Freckle – use the broker you referred to in your opening paragraph.

Quite frankly I don't know why you are trying to arrange this yourself as your questions about serviceability and offset/loc indicate you have so much to learn.

Based on a $560K val with $280K loan means you may be able to release a further

Calculation 560…[Read more]

Hi Carson,

In effect you will be financing the new place at around 105% and your structure would look something like this.

Core loan secured by new property approx 80% of property value.

Line of credit providing the balance being 20% deposit and 5% for purchasing costs (stamp duty, legal fees etc)

N.B. – any rehab would be on top of the…[Read more]

Hi Caron,

You may be able to use the equity you have in the bungalow as security for a line of credit type facility from which you can draw your deposits.

Depending upon a whole range of factors which are not limited to land zoning, postcode, premises size, your income etc a bank may allow you to borrow approx 80% (in some cases a higher…[Read more]

I wonder how they go bluffing at poker?

Section 32 sounds like Vic.

In Vic it is a legal requirement that the section 32 be completed and provided to intending purchaser BEFORE they sign a contract. More details here.

If, after reading the information provided on the link,  you are still interested in pursuing this deal make sure you get legal advice and at the very least make any…[Read more]

HI Vista,

If I was in your shoes I would go back to the property lawyer and get them to write a "get lost, you stuffed it, my client has no responsibility' letter. 

Pay a few bucks and send the purchasers on their way and regain your peace of mind.

Hi Simon,

Just read the thread and it seems, to me, as if you are meandering and going nowhere. Each of the points above (all valid I might add) appear to have clouded your thinking. This is probably because you may not have done enough pre-thinking yet.

Given you are not fussed going across the country this really does open up your options.…[Read more]

Hi Bacon,

As an addendum – if you go down the window tinting route you'll be able to get darker tint than that you can install in a car. Motor vehicle standards will not apply to a unit window,

Don't forget though that summer is only three months of the year and there are times of the year in Perth when you'll appreciate some extra warmth. My…[Read more]

Most (all?) states have a disclosure form which vendors complete which includes this sort of information. The disclosure form covers all sorts of matters and needs to be completed accurately.

Hi Bacon,

A few people I know use roller shutters to keep the sun out.

If that does not suit maybe look at window tinting, heavier blinds or curtains may help.

Hi Wilko,

Funnily enough – yesterday we met with a new marketing person with a view to reviewing the website + other documentation.

Your comments are appreciated – often we are too close to see things from afar – and what you have said makes absolute sense.

Just got to pull the next project details together first.

Cheers