Forum Replies Created
Sorry Sasha , I didn’t realize I was responding in forum . My apologizes , I have sent you private msg .
Hi Sasha , what’s your mobile number ?
Dear all, I am doing a reno deal to my rundown granny flat in ringwood east. The house is a 111 sqm weatherboard granny flat with 2 bedroom and 1 bathroom . However , I want to extend the house sideways (already spoken with council and I have enough space to extend sideways without breaching the Private open space requirement) and convert the dwelling into 3 bedroom 2 bathroom house . However , I need a building plan of existing dwelling but my town planner doesn’t do measurements of existing house and he can’t draft something until I have a building plan of existing dwelling with measurements of each room. Has anybody heard of floor planner because this service has been referred to be by my existing property manager but it cost $200 excl GST. Can anybody experience similar situations ? Would love to hear your thoughts ?
Thanks Chris and Benny for the suggestion. Yes, my approach now is to whack it on my overseas credit card (whilst I have started the loan approach with a private lender which will take about 3 to 4 weeks to disburse and then payback the overseas credit card). The work should be done in 10 days (fingers cross) and then the tenant will then move in again. Cheers John
Dear Benny, much appreciated.
Dear Steve,
The landlord insurance is in my trust name (which owns the property) but my property manager says the landlord insurance company (Terri Scheer) says that even there is $60K building coverage under the landlord insurance, it ONLY covers “damages to the building caused by the tenant and given that the cause of the water leakage which happens at a pipe below the bathroom floor and Terri Scheer deems the cause as a structural issue which is just normal wear and tear and the cost of fixing the issue falls under owner’s responsibility”. However, the water leakage caused structural damage to the walls and the kitchen, my property agent is claiming the body corporate’s insurance to fix the damages caused to the structure of the building but the body corp’s insurance company (CAPITAL INSURANCE) won’t cover the costs to fix the cost of bathroom (which is estimated to be $20K).
I am so disgusted by the insurance companies (both Terri Scheer and CAPITAL INSURANCE) for disclaiming such a big amount. Am I supposed to dig up the floor and check all the pipes are running smoothly every year? If that is the case, every landlord in Australia will be running huge costs to maintain the property every year. Sorry for venting but I am just really disappointed about the situation.
Any good lawyer’s recommendation in QLD that is willing to look into this situation. Much appreciated. Cheers John
Thanks all for your feedback.
Thanks Colin, I have just sent you a private message regarding my current situation.
Hi Colin,
The net surplus should also minus the existing loan repayments right? Secondly, are you saying that with AMP, they will add a 3% buffer to the current variable rate to calculate serviceability? Cheers John
I just have done some quick calculation, my rental income constitutes about 35% of total income but AMP, through my mortgage broker, is saying that I have serviceability issue, which i don’t understand. In total, my IPs are yielding at average 7.5% gross and they are located in metropolitan/regional cities and none of them are in mining towns. Would truly appreciate if somebody can shed some light?
Thanks all for your help. In a nutshell, I should be speaking with more mortgage brokers but from reading the post, it seems NAB and Macquarie might be my better options at this stage. Cheers John
This might sound like a silly question but what is a DUA and how does it apply to me? Thanks
Thanks for the feedback. I have a couple of follow up questions:
1) RMB income – I remember speaking with a mortgage broker in mid-2013 and told them that my income is denominated in RMB and their reply was that no bank will accept RMB salary. Hence, I didn’t bother to explore other lenders cos I thought RMB denominated income is not welcome by Australian lenders. If that’s not the case, I might explore other options
2) Maximum exposure to a single bank – What exactly does that mean? I am currently have exposure to AMP through my discretionary trust with me as personal guarantor. If I were to setup a new discretionary trust which I will use to buy new IPs but I have to act as personal guarantor, will that lender include potential new loans using new discretionary trust as under my exposure?If I want to continue buying IPs in discretionary trust structure (I am open to setting up new discretionary trust to purchase new IPs), which lender will be more suitable except for AMP? Your feedback will be greatly appreciated.
Cheers
JohnHi Shahin, I am currently working for a logistic developer in China and the company is listed in Singaporean Exchange. My salary is denominated in RMB. The issue i have with Westpac and other lenders is that they completely disregard my overseas salary cos they don’t take into consideration RMB denominated income, which absolutely kills my serviceability issue. Any thoughts?
Cheers
JohnJust one more point to add, current lender is AMP for my 5 IPs. Thanks
Can somebody show me how do I upload the photos of my roofing problem into this message so that I can get some help? Thanks
Thanks both for your comments but I am based in China and given I don't know much tradesman in Oz. I ain't sure I am getting the most competitive quote from my property manager but would like a second/third opinion. Would anybody recommend a website or somebody who I can contact to inspect the roof? Really appreciate the feedback. Best to PM me. Thanks
Cheers
John
Hi Sean,
I am also in the same boat as you where I am currently residing and working in China. Given that I am not physically in China and that I lack development experience, I chose the investment strategy of buying Cashflow +ve properties via Rent-To-Own ("RTO") and Vendor finance schemes. At the moment, I have a business partner in Australia who helps me with sourcing vendors who will agree to vendor finance terms and I also have buyers agents who help me identify vendors that are open to the idea. Then my business partner will interview suitable tenants who we put onto RTO scheme and let the monies come in. The loan is taken out into my name and the profit is shared between me and my business partner.
However, there's quite a fair bit of hassle to source banks that will allow for vendor finance carry back (10-20% depending on vendors) and then spend quite a bit of time to sort out the legal paperwork for vendor finance and RTO scheme. Once that's done, you just sit back, relax and let the monies come in. If you would like to know more, please let me know.
Cheers
John
Hi Ken,
Just a couple of questions:
1) Are you living in this property?
2) would you be able to get offload 100% share and then lease back on rent-to-own scheme for 2 years so that you can get your house back at an agreed price after 2 years?
Cheers
John
Hi Jamie,
Thanks for your response.
