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  • Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    December 10, 2010 - 10:29 pm

    Hi guys,

    Thanks for the replies.

    Our original plan was something like a rent to buy idea, but the only drawback with that is we would have to pay stamp duty (again) when the house gets transferred into our names, and my mum will be liable for capital gains.
    We thought if we can buy the place and have it in our names from the outset, we could avoid having to pay stamp duty again.

    What are the banks rules on titles? Do they need the name on the title to be the same as who has the loan? What if the title has two names, one that is on the loan and one that isn't.  Does that reduce borrowing capacity (since the bank can only have security over one owners share)

    Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    October 19, 2010 - 8:45 am

    Hi Lincoln,

    Thanks for your reply.

    Yes the government incentive is from the adult apprenticeship scheme.
    I was actually thinking I would have to sell at least one of my IP's to reduce my overall debt, which would also increase my deposit.  I guess I should go and see a broker to see what my options are.

    Cheers.

    Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    July 9, 2009 - 1:14 am

    Hi Chris,

    I have just finished building a couple of houses this year.

    The main things I have found you need to watch out for are increasing costs, especially where an 'allowance' is quoted.  For example one of my houses had an allowance for footings of $10000.  The end cost was $25000.  This is an extreme example but you should have some extra money put aside or a LOC to cover the extras.

    Also, with some lenders you have to pay for things before they release the funds.  They will normally release funds to pay the progress payments to the builder, but with others costs after the builder has handed the property over (such as carpets, landscaping, fences etc) they won't release funds until they have a valuation done.  This gets a bit tricky when contractors want to be paid on completion, and the bank haven't released the funds to pay them.

    Again, leave some extra money available to cover extra costs, variations and pay for contractors while waiting for the bank to pay up.

    Cheers.

    Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    July 1, 2009 - 1:30 pm

    Thanks for you help guys.

    I thought I was on the right track but wanted some other opinions.

    Cheers.

    Profile photo of doggitydoggity
    Member
    @doggity
    Join Date: 2009
    Post Count: 11
    June 30, 2009 - 3:49 am

    Should have also mentioned I don't own a PPOR.  Currently renting.

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