I'm not sure what you mean Scott. Are you referring to similar cases ?

Victoria rob.

I had a bit more of a search on this topic.If I want to apply the margin scheme  i dont do anything during the purchase of the property, other than retain a copy of the contract to prove the purchase price.The margin scheme is brought about by being included in the contract of sale when I sell.So i just purchase the property  "normally", with no r…[Read more]

AALLII wrote:
Would you know the very rough range for both garage and balcony? I understand they would vary however just a basic modern garage as you would see in many places around the country.Thanks

It is important to have reliable figures when working out feasability of a project. But it is equally important to have a decent buffer for when…[Read more]

Thanks V8ghia,Brief summary below:The mortgagee is commonwealth bank.The debt is 760k + agent fees on sale.The previous owner believes it was worth 900k a few years ago (I dont know if this was the banks valuation or his own guess, knowing the area it was possible this was true back then)Based on those figures 760k/900k = 84%,  This would make me…[Read more]

If the LMI is going to cover the banks loss, is the banks main concern to show they have tried to get a fair market price to prevent any repurcussions from the previous owner? Once they have established that they have made attempts to get a fair price , they will then get their money anyway from the LMI. This would lead me to think that if the au…[Read more]

Christian,Those margin rates seem realistic to me from my experience.I have often wondered though what do you say constitutes the "margin" in the building industry.I have some associates who regard supervicion as a seperate expense that has is combined with all other costs and then has a margin added to the total. Then we have some clients who say…[Read more]

If you dont have a builders licence you will have to go owner builder.You cant do multi unit work as an owner builder anymore.

Thanks everyone.I hadn't even thought of the whole LMI side of the equation.So in summary:Attempts to get a fair market value has been satisfied as the bank went to auction.The bank has final say on the price and the LMI makes up the difference.So would it be fair to say the LMI aspect would make the bank more likely to negotiate below reserve? As…[Read more]

christianb wrote:
Yes, the budget of $1,500 needs to include all elements.The reason it seems expensive is that people tend to compare "project" houses with "custom" houses.If what you are proposing has not been built before – and this is generally the case with property development, whereby the dwellings must be designed to suit the land…[Read more]

Catalyst wrote:
Correct ygue. But at some stage the bank has to sell it. If you are interested, let your bid be known. Revisit them and see how it's going, letting them know your offer still stands. Doesn't sound like you'll get a bargain though if value is close to the reserve. You never know though. They may get desperate. And they will chase…[Read more]

Come on people !Someone must have some experience in this situation……….

What happens if the money owed by the previous owner is more than current market value? LVR of over 100%Eg:Mortgage of $780,000Property currently valued $730,000 to $750,000Reserve most likely set at $800,000 ($780,000 + $20,000 agents fees)Property passed in at $740,000.The bank could then put it up for private sale at $800,000 which is highly…[Read more]

itsandrew wrote:

jazz77 wrote:
Yes, i know its buyer beware, not much good to me when i'm outbid by someone who doesnt do their homework though.

Perhaps you, or someone you know, can raise it with the auctioneer when the auction starts.  Make sure it's clarified publicly before bids are taken.

Yes, that is pretty much my plan.There are a f…[Read more]

scha9799 wrote:
Just call local council to verify the exact lock size

I know the exact size if the land.I have done the research and measured it on site, the existing carport actualy sits 2m over the boundary.It is in my best interest for others to know the block is not what it seems, or i risk having to bid against someone who thinks they are…[Read more]

I may be able to help.I am a registered, multi award winning builder, operating in Melbournes west.Reading your last post I think you may have a chance to get things sorted out.Let me know if you want to have a chat.

If you get immediate access and use of the property, arent you really just a tenant up until settlement? Or is it not that simple?You would then need your own contents insurance and the current owner would have building insurance. The owner should have the building insured with or without you in it anyway.You may need additional cover for the…[Read more]

You may be a bit stuck.Even though work may be behind, the builder is not necessarily in breach of the contract, the builder must be given time to complete the work.  If the work takes more than 1.5 times the original period in the contract then you can terminate the contract. Problem is by the time this happens you will be in serious…[Read more]

Derek wrote:
Hi Jazz,All advertising needs to be accurate. In saying this some people make genuine mistakes. In your case the paperwork is accurate (it states 700 sqm) but the photo needs some work. Rather than trying to catch the agent out ring and ask the question and then politely point out you found the photo misleading. I find working with…[Read more]

I assume the bank would have a valuer set a reserve price. By market price I mean an offer that is as close to the reserve as possible. I wouldn't expect the bank to accept anything less prior to aucton.I would prefer not to go to auction as it is a potential development site with some complicated issues, but if resolved would make it a very good…[Read more]