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If "Subject to purchaser receives satisfactory building and pect inspection" is not enough due to the definition of "satisfactory" not stated, how is the wording be best written?
Thanks for your comments Terry. Would it be easier if we wrote in the contract as: "Subject to purchaser receives satisfactory building and pest control reports"? Does wording it like that putting us in the front seat to get out of the contracts just in case the building inspection reports came back not as good as we expected?
Reason we are bit concerned is the villa we are seeking to purchase was built in 1990 and we sold our old house 10 years earlier which was built in the same year. A guy made an written offer subject to satisfactory building inspection but later he wanted to get out due to the fact he feels the building inspection reports he received was unsatisfactory. I remember clearly on the building inspection reports it says something like: some cracking roof tiles needs to be replaces, some old plumbing needs new pipes, shower heads needs replacing. etc etc
Advises from those who bought an older house will be greatly treasured.
V
thanks for all the wonderful responses, I have called the TAX Office myself given the senario of:
Loan is in my name but investment property will be in joint names. Speak to a senior tax office adviser and he indicated regardless of who's name the loan is on, tax office are accessing negative gearing based on the names on the title. In my case, I can only claim 50% of the interests + 50% of the depreciation, but on the rental gains, I also only need to add 50% of the rental gains.
Taxman also advised me to go to online and download a publication called: Rental Property Guide 09 from the ato website, which contains many useful information.
Thanks for sharing your thoughts on this guys, I was advised by my Mortgage Broker to set up loan in my name only but the house is in joint names. Would it be a good idea to get the answer straight from the horse's mouth? Like ringing the ATO for further clarifications? The last time I rang ATO the guy on the phone didn’t really know what he was talking about apart from "Consult your accountant".
Excellent point guys. I guess what I am worried about is without landlord insurance, the Tax man will argue that you have the intension avoiding tax by not having the landlord insurnace.
In regards to point number 4 and 6:
4. Loss or damage to building and contents (What does loss or damage to building and contents covering exactly? Things like fire?)
6. Liability cover (covered under building insurance). (is that public liability?)I will ring the insurance again to find out abit more as well.
Hi, that is exactly I am not sure about. Say if the the aircon, furniture, the light fitting etc etc was $5000 when new, the seller has made depreciation claim using the 10% methods, and after 2 years the value claimed is $500 + $450 = $950. Does that mean we claim on the depreciations on the remaining lot of $4050? If the owner did not bother claim any depreciations, does that mean we can now claim the depreciations on the original purchase price of $5000?
Thanks guys, called a few insurance company and it appears that only half of them requires a property manager, other half is happy for you to manage it.
I will do that that, thanks so much for your advice propertunity. I will post the response here when I get an answer.
Thanks for your response, I am in the Perth Area, in regards to the structural guarantees come from the original builder – for the first 6 or 7 years. Does the structural guarantee transfers to the next person when the property is sold say within 1 year of construction?
Thanks Heaps guys, will call a few of them to get things started.
best regards
Hi Tracey, just did a search on the suburbs you have mentioned, it appears there is only a handful of choices. Got interested in the 1 bedroom apartment in Success, however if its under 50sqm, the banks wont even touch it. I will be interested to see how big is the 1 bedroom apartment of that size will be.
God, where are we heading in this country? No good choices under $350000 is a major concern. My poor friend been eating baked bean cans for the past 3 years and after finally saving for $35000 in deposit, he still cant buy anything due to the fact his annual income is only $37000 a year.
You have been a great help by the way.
Thanks for the comments Tracey, the one in the Balga has an asking price of $335000 and its only 12months old without any strata levies imposed on it. Rental returns will be around 4% – 4.5% PA. The one in the Kenwick is bit older, 1998 built and it belongs to a complex with an asking price of $299000. After our initial offers are rejected we made full offer on the asking price. To my surprise both vendors knock back our offer and came back with a price almost 1.5% higher than the asking price. I am bit confused now as to where can I find property for around $335000 relatively new? You have mentioned I can pick some new/villa around Perth for around $350000 atm. Would you kindly elaborate on the names of the suburbs you had in mind? The ones I am looking at at the moment are: Balga, Westminster, Bentley, Cannington, Kenwick, Gosnells. Apart from these suburb I am mentioned I dont have alot of choices, Armadale is other choice but I bit concerned as a friend of mine still lives there and her house got broken into 6 times in the last year.
Thanks for the advice kopidude, one of the main reasons I am looking to buy at Balga and surrounding area is due to the New North Project, I have seen alot of housing been sub-divided into 3 and 4 lots which make the suburb newer than others. I have lived in Stirling (the next suburb to Nollamara) for around 2 years before and I find it is not too bad apart from the 2 housebreaking I had. Girrawheen is the next suburb to Balga which I have no knowledge of, can you elaborate as to why Balga is not a good suburb for investing? I would love to some local knowledge in this.
And thanks for the advice Terryw. I can bear the lose of 1% if it goes to that. Does that also apply to the PPOR as well if the property is in joint names?
Thanks Terryw, I am actually in WA. Not sure if it is payable or not.
