Forum Replies Created
Hello Foundation
“House prices have averaged around 8.5% pa since 1970. No more, no less (time and value). I can explain “Why is this so?” if anybody cares to listen. “
I certainly care to listen.
Your knowledge and interest in this area is amazing. Please share some of it with us. [grad]
Wanting to learn.
Elka
It’s scary to think that just by having your name and bank number someone could actually empty your account. ???
Greed is a powerful emotion and puts some peoples brains into neutral.
I have a girl friend whose husband was stupid enough to believe that someone was going to sell him gold bullion for half price. He and an equally clever friend got done for $100,000. It was the old “switching the suitecase ” trick. What he ended up with was 6 real bars. These were the ones he had selected at random from the suitcase, cut in half and tested for gold. The rest were just gilded copper.
Hello DraconisV
Here is a link to information on the FHOG. From there you can also link to a site with information specific to the state you live in.
I had a quick look but can’t find the $3000 you mentioned Peter but that could be my fault and also may be state dependent. I only looked quickly at NSW.
A big advantage if you get the FHOG is that you don’t need to pay or get a discount on stamp duty at puchase. This is dependent on the state you are in and the price of the house you buy.
Hope this helps [smiling]
Elka
Hello Cata
I’ve had something similar emailed to me some time ago and I deleted it as quickly as I could. I have heard of this scam but have never actually understood how it works. I mean how do they expect to fleece you?
Just curious
ElkaHello sbrody
This might sound stupid but have you actually tried talking to your neighbour about the problem. If so, what was his reaction.
Do you know what his renovations involved? If they were all internal I’m not sure he would need any coucil approval but the best way to find out is to ring the council and ask. If he did require approval, did he ask and recieve it.
You might want to have a building inspector have a look at the cracks to determine what actually caused the problem and how serious it is.
Your next step will be based on the above things.
Hope this helps
ElkaHello Ninie
Here is a link to a thread with about the same question you are asking.
https://www.propertyinvesting.com/forum/topic/24571.html
Hope this helps [smiling]
ElkaHello Len
Why don’t you ring up the ATO and ask. Who better to answer you with a great degree of certainty.
Cheers [smiling]
ElkaHello LifeX
How would that work if interest rates went up before the year was up.?
Cheers [smiling]
ElkaHello Cazza
Good to see you posting. It gives us a chance to support and encourage you.
Have you spoken to your bank manager yet and was he helpful with a business plan? I’m sure many of us would be interested if you are willing to share this.
It’s not up to your real estate agent to say what they think of LifeX s’ suggestions. It’s up to you to tell them what you want. You could even ask him to put a heading in saying something like
“Forget interest rate rises for a year”
Anything to make your property more attractive to the buyer than all the others on the market in the area.
Your worst case senario would be that the buyer borrows 106% of the purchase price ($561,800) and that interest rates immediatly went up by 1% …. highly improbable … but even in this senario the interst for the year would cost you $25,281 which is well within the $30,000 that you are willing to drop the price by. Naturally if the buyer gets a better interest than 7.5% your share will be smaller than 3.5%.
After working out about how much interest you would be up for, I would put this into an offset account against your private home loan and instruct your bank to transfer the difference in interest to the buyers loan account each fortnight/month for 12 months. This way your saving yourself some non tax deductible debt at the same time.
The interst you pay on the buyers behalf should be tax deductible for you. Check with your accountant on this.
Yes, after a year the purchaser would just pay the full interest themselves. Naturally this needs to be correctly stated in the sales contract so you need to speak to your lawyer to get this right.
Are your advertisments on realestate.com. Are your agents being active enough on your behalf or have they given up.
Rooting for you [thumbsupanim]
Elka
Hello Frank
Just in case your serious the key words are…….
dyslexic ……………… and ………………….. dog
Just trying to help [upsidedown] [smiling]
Elka
Hello
I don’t know about NSW but in Vic. you need to give 60 days notice of your intention to raise the rent. I would check this first.
Personally, seeing as you have renovated the kitchen, I would go for at least $15 if not the full $20.
Maybe you could set up an inspection as you need to see what has happened to the gate as well as discuss with them the fact that naturally this will have to be put back to the original state when they leave.
At the same time you could mention your intention to raise the rent by $20pw and why ….. renovated kitchen as well as rising interest rates …….all in a relaxed and friendly manner…… and see their reaction. You can always allow yourself to be bargained down to $15 if necessary.
After that I believe you will need to give it to them in writing. Even if it’s not a legal obligation it’s certainly better.
After your discussion with your tenants re the gate I think it would be wise to send them a letter confirmimg what you had discussed and agreed on regarding this as well.
Good luck [smiling]
ElkaVery good ideas LifeX.
Cazza I don’t know if you have settled on the unit that you have just sold in Homebush Bay but if not and there is some cash left after discharging the loan etc. then put it into an offset account tied to the loan on your home in Lake Macquarie.
At the moment this is non tax deductable debt. I suggest putting it into an offset account rather than paying it down because at one stage you might consider renting out your home for a couple of years rather than selling it. You could then move the money out of the offset account to maximise your deductible debt for that period.
You can rent out your home for up to 6 years without attracting CGT.
Cheers
ElkaHello Cazza
I’m anything but a property guru and I hope that someone who is will answer with some constuctive suggestions.
I assume your last loan restructuring was to make all your loans interest only?
I wondered if your unit in Reservoir may be suitable for student accomodation. i.e not too far from La trobe uni or not too far from Plenty Rd. for transport to La Trobe. It may be possible to get 3 rooms out of a 2 BR unit by seperating out some of the lounge room givin 3 rooms to 1 bathroom which is OK. I don’t know but it’s possible that your agent in the area does student accomodation management as it’s quite a large market in the area I believe. If not him then maybe someone else there. I think each room rents for about $135 -145 depending on size. Even with just 2 students you should be able to get nearly double the rent your getting now. It may be worth giving your agent a call and even a couple more in the area.
You obviously need to sell at least 2 properties to cut down your loans. Homebush Bay and Wentworth seem like the obvious choice.
I just reread the post from Grossrealization (page 1 of this thread) and it’s all good advise and leaving something in the deals as he suggests may be just the thing needed to get some of your properties sold and at better than bargain basement prices.
As you said in one of your posts above. First see your bank manager for that business plan GR is talking about.
Keep us posted please and good luck. [smiling]
Elka
Hello TK
I’m a bit puzzled though it may have something to do with the fact that it’s the middle of the night where I am.
$13,780 – 3,612 – 9,520 – 668 = $ 3,592 ???
What am I missing? [blush2]
Also what about repairs and maintenance, management fees and vacancy periods.
Elka
Hello kazwood
Here is a link I just got from a post of Dereks which comments on Melb CBD appartments.
http://www.propertyupdate.com.au/articles/96/1/Property-Market-Update—July/print/96
Hope this helps.
Elka
Hello Terry
I understood your comment about being careful if it’s special student accomodation, but why if it’s a unit as opposed to a house?
The reason I ask is that I own a unit which I am thinking of renting out by the room to students to increase the yield when the current tenants decide to move.
Thanks in advance [smiling]
Elka
Hello all
As I hate unfinished symphonies I thought I would post the result of your advise.
I have fixed half my loans for 1 year using the ANZ fixed with offset loan … all for free as I have a pro package.
I have structured it so that only 1 property is affected leaving 2 others with variable loans for flexibility.
BTW. It appears that the ANZ is not doing drive by valuations any more. I had 2 properties revalued (again for free as part of the package) and not only did they do an internal inspection, they did it using a tape measure. Is that a sign of the times?
Thank you all for your help. [smiling]
Elka
Hello Persius
I’m not sure if my post was clear.
When you were talking with the people at the council did you actually ask them if they would be prepared to post a letter for you to the address where they send the rates notices?
I mean that doesn’t violate anyones privacy does it? It’s not like you are asking them to give you the address.
Cheers
ElkaHello skyh
I think what was meant was that the blocks bought were part of a new subdivision and that the individual titles for the blocks bought were not yet ready.
Settlement could not take place till this was done.
The increase in price was not so much due to the title being ready but because of the property boom in Perth. In the time they waited for settlement the prices just went up.
Cheers
ElkaHello Mr Vip
OK, I’ll take a crack at it. Was the horses name friday?
[withstupid] and very [offtopic]
Elka
