Out of interest…. which conveyancer/solicitor are you using?

Hi @propertyseeker

Hmmm.

There are two questions here really. The first is deductibility. I would imagine from a taxation perspective your “hired help” would be tax deductible. Check with your accountant. Note that if any of these properties are held in a SMSF you’ll probably run into strife employing yourself or a related party.

However the more important issue is you not being represented by a (real estate) licensed PM that is up to speed with tenancy laws etc.

I think it would be fine if you were using your cousin to just do admin (eg pay bills). However I do not think it is a good idea to have your cousin do anything relating to the tenancy itself. I don’t see tribunal looking favourably upon your case with no licensed PM in the equation, and also your insurance premium is likely to be higher due to the fact insurers deem it a higher likelihood of there being tenancy problems (and thus a claim) if no licensed PM is in the equation.

I’m going to say it. I think this property is a bad idea for a SMSF. A big part of the value of acquiring property is the power of leverage (borrowing). If you cannot borrow and have to pay extra for specialist legal advice about the complexity of a property that is still only going to give you normal residential returns, then what is the point?

That’s my opinion…

The definition of “rich” depends on your value system.

To one person “rich” might mean having enough money to cover the bills, eat well, socialize etc without worrying whether you can pay the bills.

To another person “rich” might mean not being happy unless there is an overseas holiday each year.

To another person “rich” might mean being surrounded by people that care about you and to be in good health.

You get the idea.

Hi @lenkat

As the others have pointed out, the answer is usually no. However if you really want it staged just for pics, one option is using one of those virtual staging mobs. They superimpose furniture etc into the pics. Some companies appear to do the photography with the staging as an extra, and some do just the staging. Here is one ; http://www.virtualfurniture.com.au

I would say spread your risk rather than put all your eggs in one basket. Your other option doesn’t have to be Newcastle though…

This issue comes up often.

Laws in each state are different, but generally an agent is not required to pass on offers that fall outside a certain set of parameters if the vendor has instructed them not to bother them with such offers.

For instance, in Victoria, regulations 16 and 24 of the Estate Agents Professional Conduct Regulations 2008 state;

“Unless otherwise instructed in writing by his or her principal, an agent or agent’s representative must communicate to the principal all offers to purchase, sell or lease real estate or a business, made to the agent or agent’s representative, whether those offers were made verbally or in writing, as soon as possible after the offer has been made.”

The definition of “principal” is the person who engages the services of the estate agent or agent’s representative to act on the person’s behalf. In other words, principal means the vendor, or person legally allowed to arrange the sale of the property and as such recruit an agent to sell it for them (eg Power of Attorney, executor of estate etc).

Hi @suavemechanic

Hmm, sounds like your bathroom has the toilet in the same room, and that the floorboards need replacing. Dilemma.

For just a week the tenants might find it a hassle to move out and prefer alternate options.

If you were dealing with a concrete slab I would say replace with a nice lino. However it sounds like that is not the case.

Check with your property manager as to whether you can have people residing in the home at all if there is literally no floor in the bathroom. Even though you may tell them it is unsafe to go into that room the law might say you cannot take the risk of them being silly and going in there anyway.

If the room only had the shower, bath and sink I’d be suggesting looking at options such as a week’s free passes to the local swimming pool or gym that has shower facilities (in fact the tenant could probably get a free week’s trial at a local gym). There is also the option of temporary showers and toilets… cubicles that go in the backyard. If it went on for weeks on end it’s a bit unfair, but for only a week people can manage.

Another option is to ask your property manager if they have properties nearby on the books that are having trouble getting tenants and see if you can lease one for a week or two. It’ll be cheaper than a hotel.

In summary the options, depending on circumstances, and how flexible the tenant is, are;
– Choose a quick-replace solution such as lino over concrete
– Go with budget options such as utilisation of shower facilities in nearby gym or swimmingpool. Doesn’t solve the problem if the only toilet is in your bathroom though.
– Temporary shower and toilet solutions (cubicle in backyard)
Hotel/shortstay
– See if tenants have friends/relatives they can stay with for a week until the works are finished, in exchange for some rent exemption/rebate
– Leasing a regular residential rental for a week or two
– Wait till lease ends to do the repairs … somewhat irrelevant though if the tenant plans to renew the lease.

I don’t have a huge beef with titles with sewer pipes within the boundary lines, but running underneath the house wouldn’t be my cup of tea. Could be real messy if that pipe is suddenly deemed to need a repair. Snuggled along a fence-line is a different story.

Hi @zen007

Glad you found the forums so we can keep you out of strife. Can’t say this “opportunity” is particularly appealing.

Take a step back and try not to focus on a particular property but rather work out what financial goal you are working towards and how much capital (money) you have saved to get you started. That should keep you focused on facts and figures rather than distracting glossy brochures :)

Can you tell us a bit about your circumstances… age, married/not kids/not, how much you’ve saved etc. That should helps us make more useful comments.