Forum Replies Created
Hi Rachster,
With a few exceptions new properties usually come with a 6 year warranty. Check out the builders services authority in your state for exact details. On top of this new properties also have a defect warranty period from time of practical completion (not settlement) – once again this may vary from state to state so a google search will be time well spent.
Your contract should also outline any obligations the builder has – getting them to do the work can sometimes be a bit of a challenge though
Terryw wrote:Yes, the broker must be part of one of these groups selling properties – probably $40k commission build in.My thoughts exactly.
Was the broker 'recommended' by the company selling the house and land package?
You 'buying' the land off Rowan Burns or an unrelated entity in which Burns has no role or profit share arrangement?
Nothing wrong with neutral gearing if the property goes up in value.
Rental returns may be able to increased or you can pay down debt (if there is no non-deductible debt on your balance sheet) both of which will increase your rental returns.
Hi MIck,
I suspect the $1400 completely covers both buildings and the $2600 is an agreement between owners to maintain their halves of the duplex so values are maintained.
Is there anyway you can check the figures?
They are much too high for a common driveway in my opinion.
Either that or it is a veeeeeery long driveway paved in gold.
If the figures are correct I see scope to reduce costs pretty easily.
Mick,
Sounds like you have a common driveway and that is all. If so are those figures correct?
$1400/annum to cover a driveway & $2600/annum for a driveway sinking fund.
Doesn't sound right to me.
I must admit I am intrigued by the KRudd – media relationship.
Hi Cha,
Just coming back to your comment "Is there a state that do not have or have considerably less stamp duty?"
Stamp duty calculators for all states can be found on numerous websites so you can compare the various states. If tax is an issue for you do not forget to consider land tax.
Trying to save stamp duty by compromising your property selection is the wrong way to approach property investing.
Get the right property in the right location – stamp duty & interest rates etc are simply the cost of doing business.
Dugsts – Not commenting on Star Investing as I have nothing to contribute. Was interested however in your comment about land not being deductible.
From pg 10 of ATO Rental Property 2010 guide comes this quote
" Similarly, if you take out a loan to purchase land on which to build a rental property or to finance renovations to a property you intend to rent out, the interest on the loan will be deductible from the time you took the loan out. However, if your intention changes – for example, you decide to use the property for private purposes and you no longer use it to produce rent or other income – you cannot claim the interest after your intention changes."
It seems your accountant is relying on one of the old tests for deductibility 'Does it earn an income?"
This old chestnut is not the sole determiner of deductibility. Purpose of borrowings also applies.
Hi Jamie,
I am not doubting the SS meetings in any way at all.
I just wonder if the SS event is more a networking rather than seminar event. Given the initial enquiry was trying to get some strategy/approach tips and techniques as part of their own learning journey I wonder if they wouldn't be better off tracking down property seminars from banks, brokers etc
Having said that clearly the SS event may create opportunities to link with successful investors in more of a mentoring/ chat over coffee role.
Just my thoughts.
Hi Shell,
Set yourself a timeframe and stick to it.
Hi Cha,
Don't forget to look at areas within a state too. Some parts of some states do better than others.
On top of this various media organisations and property research groups such as APM, Residex, RPData etc all make predictions about various states. It is not an unusual occurence to see contradictory predictions being made.
ANZ also do a series of bi-annual property reports which may be of some help (hindrance) to you. These can be found on this page
Hi Freckle,
Just speaking with the guy who manages our development projects for our clients and a quick look at Onslow tells us the town is zoned R20 – so limited scope for development there. Compounding this is a distinct and significant lack of service infrastructure which is going to hamstring the town for a while.
Mind you Chevron are currently seeking tenders for 400 unit office space in Onslow with 10 yr life. Details are a little sketchy at the moment.
REIWA Stats & Market Information for Onslow here
REIWA Stats & Market Information for Newman here
Readers need to be aware some marketing groups & REA have been actively marketing Newman. With only 52 sales in Newman over the last 12 months median prices are subject to distortion.
Similarly Onslow has had a significant median price increase but this is only based on 16 settled sales in the past 12 months.
Lived in a unit on Harborne Street many years ago – not sure if they are the same ones,
Buy in WA and you'll be offered the same protection
I know some excellent property opportunities Qlds007 wrote:No not a type at all.Desparate times cause for desparate measures and you would be surpised what lenders will accept if it is a cash offer no questions asked.
Wont say it wasn't without headache dealing with a lenders legal department that doesn't answer correspondance but certainly worthwhile.
Deals like this are out there.
Cheers
Yours in Finance
Lots of headache tablets can be bought with that instant equity.
Agents and conveyancers/settlement agents/solicitors handling property sales in WA now have to get 100 point ID check done from vendors.
This requirement came into effect as a result of this scam.
Hi Moxi,
You are correct – OTP contracts are very often weighted very heavily in favour of the vendor. The issues you raise are pretty close to the mark.
In the current market banks are reluctant to lend to large developments unless there are significant number of pre-sales. This means unconditional OTP sales and the purchaser is potentially left high and dry if things go awry.
I know some excellent property opportunities 
