Forum Replies Created
Good on you, how exciting.
Fern
This is a fairly long process with money only going out, none coming in. First find & buy land, even using a display house you have to shop around, decide which one, sign up approvals from councils then wait for it to be built with the inevitable delays. Once built you have to carpet, window furnish and then start outside with garden. For my money I would be buying – incoming day 1.
Fern
Back when we had small children it became imperative we have a second toilet which was the main driver for doing an extension,. We had 3 children and it seemed someone was always on the loo when someone else wanted to go. I definitely think if its a case of one or the other a 2nd loo would increase value more.
Fern
This is really about overcapitilization. If you have an expensive home gaining big rent you need to go the whole hog and build a big brick garage and fence to enhance the property. If it is an economic home in an economic suburb, you could buy a steel garage and have it built. Unless you are a really good handyman don’t attempt to build one of these yourself. I’ve seen the results of someone trying to put one up without the expertise. I think the secret would be to start with a level poured slab. Fence could be anything from a wire fence covered with fast growing Jasmine on up to scale. It really depends what you want to spend for what you will get back. Ask your accountant as I remember reading somewhere the interest someone was claiming on an air conditioner was more than it cost so it may even pay you to get a loan to do it all.
Fern
Loved your mental journey over 5 days Dazzling. Nature abhors a vacuum and I avidly await hearing what has filled it. Have you ever thought about actually building tilt slab factories yourself. You could find either a vacant piece of land in a new industrial estate or an old crappy building in an existing industrial area and project manage the same as an owner builder. You have made the best decision as I know many a marriage has broken up over workaholics – women would rather you spend the time home than accumulating wealth and you lose children once they are 15 – boys in particular, they only want to be with their mates after that. Great decision, best of luck.
Fern
I have always thought if I had spare cash and could wait it out I would buy into Southbank/Docklands. About 3 years ago (in the real overflow stage – from heresay) you could screw a deal of an apartment for $185,000 around Southbank. I don’t think you could get one for that now, I think if you could still get a real bargain the overflow of apartments cant last forever. I believe they will turn around and become very hard to buy into. Look at the Gold Coast, – they don’t make any more land. Just an opinion!
Fern
I dont know about the financially adviseable side of it, but for you at 22 my advice is get a small loan (you can feel very pure and virtuous and financially responsible) and then get out and have some fun in your life. I can’t see the point of living on the smell of an oily rag to pay big payments off a house at your age.
Fern
Congratulations, well done. How exciting for you, I would be very interested from others with experience on how to get long term tenants out. I have a vague memory you can justify their rent is way below the norm for the area, but I dont know whether you have to go to a tribunal or something. I wonder if you can just put it up to normal when they renew their lease
Fern
I have always lived in the Northern suburbs and you couldnt pay me to live over the other side. The traffic nearly drives me mad every time I have to venture over there. Its all so much more crowded and takes longer to get served. The air is definitely fresher over here as less pollution and traffic and its quicker to get out to the beach or country towns. It takes me about 20 mins on the freeway to Chadstone if I want to. Having said that people in Sunbury are now complaining that it has lost its village atmosphere and is becoming too big. However I definitely wouldnt expect it to “boom” I think it will just tick along as it has always done. It is quite far out – about 30 mins from the city on a beautiful freeway, Oh but I forgot, you all think that is quite close in.
Fern
Not enough tie downs and a few other things I agree with. Anyway, rather than hold things up I have paid a builder to carry out all the things Inspector wanted (they write a list) Most of these items seem to fall into the “overkill” on the Inspectors part so I still haven’t decided whether to try backcharging the frame providers. I suppose it all hinges on how strong I want to be holding to the contract. I would want to use them again so want to make a win win situation. I will probably present them with the builders bill (which is considerable) – and discuss some sort of compromise. We are on two pathways though, their quote says “nominal tiedowns” and my acceptance says “pass frame inspectors criteria”
Anyway we have a new inspection happening Monday, this really should pass, spouts, fascias going on Monday, with pass, roof going on Tuesday, then polystyrene, render and bricks. I really hoped it would be at this stage before Easter, but there you go.Fern
Well thats what being computer illiterate gets you. I tried 4-5 times to load the video, each time seeing about 1/2 – 3/4 hr. Finally put aside 2 hours and sat through whole thing. Didn’t realise there was anything else going on. What should I have clicked, the picture of the DVD? I would really have like to go in this, but obviously too late. I had sat through the whole reno project on the apartments as well but have now wiped the whole thing so cant rerun and find the rest of it.
Fern
I have a friend who owns a house in another town which is now worth big bucks. She originally lived in this and then bought elsewhere and has rented it out for approx 3 years. She would like to sell but thinks she has lost the CGT exemption. I think she could shift back there and live for a year and that would then become her PPR again. Would you agree, naturally she will talk to her accountant about this too.
Fern
Flip side of this. Owners had gorgeous nearly new double storey townhouse in Hawthorn (Melb) Put it on the market and any prospective purchasers nearly gagged walking around top storey, because of the smell and in spite of new carpets. No-one bought it and it sat on the market for ages until entry of my friend who actually lifted the carpet right back and realised the owners two boxer dogs had lived up there while their owners were at work, using it as toilet as well. He made a ridiculous offer, they accepted. He replaced the whole top floor boards and new carpet Boy did he get a bargain. (So it not always tentants)
Fern
I have been thinking of my next project for a while and love renovating houses, but am wondering if (in Melbourne) there is still money to be made. Would you think, buy a solid house in a good suburb, but with old carpet curtains, kitchen and bathroom and do a very cost effective renovation that looks really good, would the general opinion be you could still make money. Trouble is, in Victoria you have to make way more than the stamp duty for a start .
Would really appreciate just some rough opinions.Fern
Sorry, you were asking if its possible. I think it has something to do with the amount of light coming in. I’m sure your local council would be able to tell you building regulations requirements, or a local draftsman
Fern
A friend of mine has just built a house (inner-city) right to the boundaries of the block on either side – without any windows at all and it looks fantastic. They are all in the roof. He has a 600mm clear glass panel along the whole length of each room in the ceiling at the join to the wall, and the family room at the back has a complete glass ceiling. The whole house is built out of concrete and I thought it would look cold anddark but I am totally amazed how light it is and you don’t even miss windows.
Fern
Just a thought, (read carefully) – if you are seperated and buying the other partner out, you dont have to pay stamp duty
Fern
The very first house I bought by myself (after leaving husband) was a house that had been passed in at auction and on the market for 12months. It was an IP for the owners whose business had run into difficulty. I had very little money and put in a very low ball offer, expecting to negotiate and pay another $10G more. Guess what? they accepted. I went straight into a decline and worried myself sick that (a) I was taking advantage of them and (b) they would pull out when they came to their senses. Someone else enlightened me to the flipside – I had given them the money to save their business. I felt a lot better and realised – someone’s meat is someone else’s poison (or something similar) But to your question – always be businesslike and fair. Its your money – protect your investment first i.e. go round there with a Notice to Vacate and explain you have to do that legally, but if they can start making some payment against the rent (surely they can borrow from parents etc) and pay full rent within x amount of time, you will withdraw notice. Youre being fair and they know where they stand. Aquaintance has rented out a house to single mother and 2 kids who are not paying the rent, but guess what, their recycling bin is overflowing with pizza boxes and giant coke bottles. What happened to putting away your rent first and living on what left? We all did it.
Fern
If I had a property for 3 years, then built a new house in the backyard, shifted in and then sold this new house 15 months later, this wouldnt attract CGT would it? I can prove shift in date because (a) my old PPR was rented out on that date, and (b) services connected to the new place on same date. Grateful If someone could add their opinion.
Fern
C’mon guys & dolls, I don’t require legal advice, just some what ifs, hurly burly and anecdotal. Someone must have heard something about a similar situation.
Fern
