Forum Replies Created
Note: Married to a tradie….
I don't think the tradies are being defensive or sensitive as suggested, I think they are trying to explain how being self employed works and the reasons for their prices. Many have gone into great detail about the running of a business when you are self employed and all the work, and expenses, on the side that are not seen by the end consumer.
Personally, I think it is impossible to understand unless you've done it yourself.
It's a little like being a property investor.
Consider the hours you put in searching for property on the net and the papers. Looking at properties. Managing that property, organising tradies for repairs, deciding on color schemes, planning renovations, doing the work yourself or organising others.
Finding tenants, dealing with tenants or property managers.
Organising finance, arranging insurances, meetings with solicitors.
Doing the bookwork, ensuring the rent has been paid and the money is there for the repayments.
The list goes on and on,
All those hours,
And that's just one property……
It's a little like being self employedI feel for you, we had a similar problem four years ago. We had a home loan with a big 4 bank for 11 years and decided to upgrade. Unfortunately we had only been self employed for 6 months when we did this and our loyal bank wanted nothing to with us, even though we only needed to borrow 30% of the purchase price!
We ended up with a low doc loan which was easy as long as we had an ABN.Perhaps they are a little stricter now with all the trouble in the US.
I imagine one of the brokers on this site may have a solution for you.
Is this your home you're talking about and what do you need the increase for?
I hope not for the wedding – you should see the post in General Property "Expensive weddings, high mortgages"
CheersThanks for your reply Linar,
I am not really upset with the vendors as it is one of those lovely banks causing the problem.
It is just really annoying when your plans get all mucked up!
I am itching to get in an tidy up the place as there are practically tenants lining up at the door.
I don't really want to cancel the contract, as I believe it was a good buy. Although I am a big believer in Karma and not really happy about a negative beginning.
Hopefully it won't be too long…… if I could just have a date it would be nice.
My solicitor advised my that I shouldn't be up for fees as the loan wasn't drawn down on the supposed settlement day.You'd just think in this time of almost instant communication 60 days is plenty of time to arrange some documents, I once built a unit in not much more than 60 days!
Cheers
SueI think so, the contract was signed on the 4th August at auction, with settlement in sixty days.
So the 4th of October was set as settlement day.
What I meant was, they had a full 60 days to get the bank ready. The property was on the market for at least 4 weeks before the auction so its not like they were rushed or anything.On auction day they prefered a 30 day settlement, but we opted for 60 days, lucky we didn't go with the 30 days!
The question is not how much he cost, but did he get you more than $1200 extra in your pocket than the accountant that only cost $120 last year ?
Or will the advice he gave you improve your position, or lead you onto a better or clearer path?
Are you comfortable with him or do you feel that he is a little shonky?
Our accountant charged us $1700 last year, but we are self employed and have two IPs also.
We have also gone with a new highly recommended accountant this time, so I am also looking forward to seeing how he goes with our returns. (he's still looking over our books)
Cheers,
SueThanks Steve,
I feel better now as I got 254 which didn't seem too bad, then I read the first two posts and I thought I was doing really badly.
Like someone said above, at least I'm not negative….it will be fun to see if we can improve our score.
I forgot to look….could we print the results? That would be handy.
Cheers,
SueHi Boshie,
I agree with the above post in that you really need to get a little more knowledge in the basic finance department.
A good place to start is to keep searching through this site as it has a wealth of information.
Another thing to do is read some basic finance/property investing books.
I believe Margaret Lomas explains finance in her books in an easy to understand manner. (so does Steve!)
And there are others.
I am in a similar situation to you, being in partnership with my husband who is a self employed Plumber.
We have low doc loans, our lender offers a step down interst rate over three years and as our 3 years are well and truly over, all our investment loans are at reduced rates, even though they are "low doc".
Some people may be jumping up and down now as they don't believe in having your loans with one bank, but I like the simpicity. We have one LOC over our PPOR (for the deposits) and separate basic interst only loans for the 80% value of the investment properties.
However, the big difference is that you have quite a high PPor debt, whereas we actually don't have any personal debt on our PPOR making it a little more comfortable for us to carry negative gearing.
I would consider paying down your PPOR loan first to a more comfortable level.
Hope this helps a little,
SueHi Wes,
I would think that if the Section 32 isn't ready, then the contract isn't ready either as these are usually drawn up at the same time. So the vendor may accept an offer but you can't make it official with out the contract anyway. In the mean time they may change their mind on your offer.
I'm pretty sure you can't legally sign a contract anyway until you have been given a Section 32.
You can find out most of the information in a Section 32, like a title search by researching yourself, of course there will be fees.
Cheers,
sueGee that was fun.
Makes me feel glad I live in the north! Well, more north-east actually.
Leafy environment, not too flat, not too hilly and smack bang between two major universities.
(La trobe and RMIT)
And two minutes from the ring road that takes me straight to the CBD, never use it though, there are plenty of major roads that I'd rather take into the city.
Oh, and not a toll road in site!Very funny blogs
But I reckon the old guy was better.I'm not sure how it works in your area, but the councils I have worked with will not "stamp" and approve plans without all their little requirements shown.
Such as rainwater tanks, even down to the landscaping and type of plants!
Then after completion, they come by for final inspection and ensure that all that is on the plan is in place.
Only then will they issue a Certificate of Occupancy.
They usually like to find something… our last place was picked on for not having a seal around the front door.
So I guess I'm saying if they require the tanks, they'll probably want to check at some stage that they a there.
SuePlease note that I am not an accountant or even close!
And thanks to V8ghia for his/her input, much appreciated.My PPOR loan is actually a line of credit. When I wish to purchase an investment property, I ask for a new sub account or split, as some call it, to my loan which is used to fund the deposit plus costs. The other 80% for the new property is a separate loan at another bank/financial institution.
It is best to separate your investment portion of debt from your PPOR portion of debt.It is not necessary for tax reasons to have the 80% loan with another bank than your PPOR, but most investors prefer it that way.
You should really consult an accountant to ensure you set up your loans/assets correctly, but I hope this helps a little.
Good luck,
SueHi, I'd just like to point out that some of the older brick cladding contains asbestos, so if you opt to remove it, I'd have it checked out first.
I only recently found this out myself, so be careful.
Cheers,
SueAgree with most comments above, however are we talking brick veneer or solid brick houses?
Solid brick houses are a real pain for renovating or extending.
Even if you need to redo plumbing or electrical work, it will cost you a lot more with a solid brick house.
Something for you to consider.
SueThat's interesting….
I have always redrawn from my PPOR loan to fund 20% deposits for my investment properties and have certainly claimed the interest for it! I do set the deposits up as separate sub accounts though, as it makes it easier for the accountant.
The other 80% is a stand alone home loan preferably through another financial institution.
I was always told that its not where the funds come from, but what purpose they are used for, that makes the interest tax deductable.
Am I wrong? Cos, I've been doing for years, with different accountants and have never had it disputed.
Cheers
I would look around the area of this property and see if any other properties have been developed with more than one building per lot.
Ring the local council planning department and talk to them about the chances of your proposal.
I know of an area in the northern suburbs of Melbourne that has covenants on the titles for one dwelling only, however there are quite a few units going up around there now.Good luck
Hi Banked,
You can get a depreciation report done on the value of your property, this is common practise and the tax office is happy with it. Make sure you use a reputable company though.
I Haven’t been to the forum for a while, but there was a very helpful fella called the Depreciator who used to post.
Maybe do a search on his posts, it should be helpful.
Cheers, Sue“Be careful not to step on the flowers when you’re reaching for the stars”
Hi Billy,
I’m no expert.
First I’d ring the council and check their requirements. Councils all differ in the size of block they will let you subdivide/ build at the back.
The width of the driveway is important, as is the distance between neighbouring properties and even the direction that the sun shines!
I’d talk to them first and if they say you have the basics, ask an achitect/draftmen to inspect and see what is possible for you to build.
Hope this helps a little,
Sue“Be careful not to step on the flowers when you’re reaching for the stars”
Yes water hammer is a problem. If you find it, first check if washing machine taps have been turned off.
This is a common cause. Turn the washing machine taps off, and try again.
This is why I have water hammer, but I am too lazy to remember to turn them off…one day I am going to flood the place.(Having a flick mixer tap doesn’t help matters either.
Cheers,
Sue“Be careful not to step on the flowers when you’re reaching for the stars”
Hi Dazzling,
Excellent tips.
It doesn’t hurt to treat your tradies as “human”.
It’s amazing the number of people who look down on their tradesmen.
Paying prompty, especially the same day, always scores points.
Contrary to popular opinion, plumbers do not like to dig. So offering to do it yourself will earn you brownie points.One I’ll add is to tell the plumber everything you want done/looked at before he arrives.
Cheers,
Sue“Be careful not to step on the flowers when you’re reaching for the stars”
