Forum Replies Created
It would be unusual for Vcat to allow less than the 'normal' level of consumer protection than would be afforded to other consumers. Short term rentals ie holiday lettings generally don't have a lease – is this what you are referring to?
The links above are for a vcat worshop – giving you information about being a landlord, rights, responsibilities & probably also a forum to ask the questions that you need and to get the information from the regulator not opinions.
Generally this is a very expensive option because of the CGT & stamp duty implications – consult your accountant beforehand. It is more effective to sell the properties and to buy new ones inside the trust
1) If the (prospective) tenant has offered to pay upfront, there is nothing stopping you from accepting it HOWEVER if you have demanded/requested more than 2 weeks (NSW) upfront, then it is illegal.
2) Ask your accountant but you should be able to claim depreciation on the works that have been completed – accountant will sort out the timing. You can't claim some things outright because they have been done prior to leasing out the property. & others due to the size of the expenditure ie 'project' will need to be capitalised.
3) A lease can be as short or long as you agree – you will however need to give appropriate notice of the proposed increase, even if it is included in the lease ie NSW 90 days.
4) Standard form leases are available on the NSW Fair trading website – check your state
ryan mclean wrote:Better to pay tax than to avoid it and end up in jail.Well ……..
Bullmarket, as per the Australian case that you cite, valuers are professionals and can be held professionally liable for their errors. If you had read the case (or SNM's link) you would realise that it was an error in calculation of gst not an error in a valuation.
With regards to the accuracy of the information received by the LTO – it is only as good as what has been provided to it by the vendor's solicitor. If this information is wrong it is neither the valuer's nor the LTO's error (BTW the information is purchased from an information provider like residex or RP Data, no one just makes up the numbers).
As for the reliability of valuations – you've picked up 7 cases over 3 years, well that's an awful lot of unhappy customers considering there are thousands of valuers around the country performing many different types valuations on a daily basis (mortgage, insurance, development emv, land value for LTO/ratings, water rights, asset valuations for state government bodies, vals for public companies, reversionary interests, estate, land tax assessments, gst calcs, lease value, market rent, vals for special classes of property…..). Two upset clients a year that is a pretty good strike rate.
jontapp wrote:Occasionally when observing the market and observing other sales e.g. the property we were considering, that was purchased for over market price (by another buyer), we would see a valuer provide a bank valuation under the offer price and save the buyers bacon (not our client). The deal would fall through and the property would come back on the market. This was the exception and not the norm.The valuer is there not to save the purchaser from their own stupidity but to save the bank from bad debts.
jontapp wrote:So the valuer was the deal breaker. They could make or break the deal.No, the bank was the deal breaker – the bank, acting on the advice of its consultant who provided a valuation as to the property's value for mortgage valuation purposes, declined to provide finance for a deal which would expose it to a level of risk it was not prepared to accept. The valuer is not your lap dog, they work in the interest of their client.
jontapp wrote:Often the valuer would ask the buyers agent for the sales data and naturally the buyers agent would provide sales data that supported the sale. Alternatively the valuers would often call the selling agent for the sales data and naturally the sales agent would provide sales data that supported the sale. Why would a buyers agent or sales agent provide sales data for lower priced sales and risk losing the sale? Self interest and self preservation are human nature.A valuer may contact several selling agents in an area for recent sales – this information is 'off the record' as it does not reflect the reported results until the properties have settled. The information can be used for an alert towards a trend (up or down), market sentiment etc but CANNOT be used until they have been reported by the LTO.
jontapp wrote:Often the valuer was very busy and it was much quicker to get sales data from the buyers agent or sales agent. As time is money. The valuers were often on a schedule and have to do so many valuations in one day. Time is money when they have to do volume (valuations). The churn and burn process.Valuers set property market prices, not buyers and sellers!
They make or break the dealYes, valuers are underpaid by the banks but you then have the hide to dispute that they cannot spend sufficient time in completing a 'proper' valuation. Are you prepared to pay the bank more so that they can fairly remunerate the valuer?
Valuers do not rely on real estate agents and definitely not on buyers agents for the provision of data. They might have heard of RPD & APM (it is not a trade secret).
Bulk valuation uses sophisticated statistical modelling, one-off mortgage vals are not bulk vals.
This one seems reasonably switched on:
Keira Biddle
Property Manager PRD Tamworth TAMWORTH NSWburtonridr wrote:Scott No Mates wrote:PS where do you board in Az?What do you mean? Like when I visit?
I have family that lives there, I stay with them when I visit.
I think he means 'are you a snowboarder who rides a burton board'?
Jeffrey, get yourself a copy of the building code of australia – it has the required information ie standards to which the work must be completed. If you are flying blind, have a look at the supplier websites.
Who's to say that the tenant doesn't have a 6 month holiday? or 3 mths + option?
Thanks Richard, sorry about Chelsea.
Qlds007 wrote:1) Not exactly sure what you are asking here but assuming you are merely referring to the lvr then Yes lenders would have a problem with the numbers. This is not to say that the deal can funded on the income shown as there are too many other variable.One house will be ppor other will become an IP. Will income for IP be factored into the loan affordability or must it be stand alone for construction?
Qlds007 wrote:2) Most lenders will want the interest paid monthly especially if the deal is done as a residential loan however there are a couple of ways of getting around this.Not sure of current repayments or if there is headroom for renegotiation on current loan, so meeting current obligation isn't a problem although it may be once the principal increases too far (staging construction may be an option as well).
Qlds007 wrote:3) A business plan wont be of any use on such a small project. Lenders will want evidence of income (payslips / Group Certificate / 2 Years Tax Returns if self employed / rental assessment). Copy of the plans, specifications and fixed price building contract for the new construction. Details of external liabilities i.e credit card statements etc.a) Person is PAYE, stable 5 yrs + at same place
b) Still kicking around options of what to do with the site (eg side x side or 2 separate dwellings with minimum common wall)
c) Credit card – minimal use low credit limitQlds007 wrote:4) This is a personal preference. Strata Titling the properties and generating 2 Titles will cost you more i.e plan of subdivision, Titles fees etc etc and each property will be rated for Council Rates. In saying this certainly you can split the loans and have 1 on each lot and keep them separate.Would be able to subdivide on Torrens Title but prepared to meet all requirements for subdivision but not complete the 2 titles.
evernat wrote:Sorry guys for short answer,I have have some really good feedback on this thread a while ago.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4333820
Yes I would really like to buy in Sydney,but to buy a house for under 300 and get good rent,not easy.
Still some opportunities around Mt Druitt/Dhurruk or further out towards Penrith etc.
It may well be cheaper (and give a better finish) if you can put some battens up and put in a flush plasterboard ceiling.
One for the simpletons like me, do you take into account that a pre Sept 87 property would have no cgt liability? What rate(s) have you applied for tax corporate, personal?
Your CG is $300-$230 = $70. If you buy & sell in less than 12 months you will pay tax at your marginal rate on $70k, if you hold out for 12 months then cgt reduces by 50%.
If they are a company, they may be leasing an office somewhere? Do they have a parent company? Where is their head office/sub-branches? Who is their landlord and what is their rental history? Has the agent run a company search?
If you can't get this information, then a few trade references should suffice.
(Company searches etc are used for commercial properties and generally unnecessary for residential, they would also be at your expense).
Someone's "Tic"ed off!
Rub it in Elliot! At the barest minimum I've got a 6 hour drive to get some sliding time. We had a few hot days last week hitting close to 30 deg C & we were all longing for a balmy +2 and a bluebird day.
Check out: http://www.ironbarkfallscreek.com.au
The building envelope is defined in the council's building guidelines (a document which may sit with the LEP) – it covers size, scale, bulk of the building.
The building permit is the DA/CC which allows you to undertake work eg subdivision or construction of dwelling.
