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Due Diligence is a process in making sure if the property is in decent condition. You should review the surveys, check the outstanding violations on hte property, review the building permits, certificates of occupancy and the taxed due on the property.
JacM wrote:The interest rate would be the same on an IO or a P&I loan. So in essence, if a P&I loan required you to pay $1400 a month, but an IO loan required you to pay only $1000 a month, then if you chose to get an IO loan, you could pay $1000 month to that to cover the interest, and deposit $400 a month into the offset account, and you'd achieve the same result. Of course, due to the increasing balance in the offset account, the "interest only due amount" would decrease with time. So let's pretend that in month 2, the interest due was only $995. Then instead of putting $400 into the offset, you'd put $405. Such that you are in essence paying at the same pace as the P&I loan.Great explanation! I learn a lot from this post. Thanks!
jcar11457 wrote:Hello,I have just purchased a property and having trouble selling my current one.
Just want to know if I could rent the newly bought property for few month so I could have more time to sell the current one and then move in to the new one?also i have received the land tax notice asking whether the new property has been rented, shall I notify the land tax office as soon as the property has been rented? then notify them soon I have sold the old one and move in to the new one?
bit confuse at the moment
Do what is convenient to you but you have to weigh the pros and cons. About the land tax, you can inform them your situation and just do whatever they will suggest.
Goodluck!
Jack Property Investment
