Forum Replies Created
I know we got stung by extra 1% medicare levy last year the amount of tax is still based on your adjusted earnings but they factor in losses and super etc to decide if you qualify to pay the extra. We should be just under this year if I have my end of year figures right.
Yes this is correct.
Hi yes I have used them twice once on the south side of Brisbane and second time on the Sunshine Coast both inspectors did an excellent job. Didn't go through with the first property due to the inspectors report but did purchase the second property. They do have different inspectors in each of the area's they cover.
Thanks everyone looks like its BMT then.
Hi Shahin yes had problems with the one out in Coopers Plains Qld walked away from it due to the bad building inspection report I received that was the beginning of Jan, then tried for one already built in Annerley Qld but missed out to someone else. This one is in Meridan Plains on the Sunshine Coast Qld built by AV Jennings, building inspection and everything went fine this time around so finally on our way with an Nras property. Our other 2 are both in Chinchilla and doing really well so this one will compliment them, Paul is on very good income so we can afford to negative gear with it as the other 2 are just about neutral and cash positive after tax now.
Thanks again everyone,
Jean
Matt as Trickeymickey says do some more research. Don;t take the word of a developer or selling agent. One look at realestate.com.au and a word with the estate agents in the area will tell you what true rents are. They do vary a lot in Chinchilla depending on whether it is leased to a company or rented to families moving into the area. Also the time it comes onto the market comes into play, some will go before they are handed over others can sit for weeks.We have two 4 bedders there and are doing alright the first rents for $550 has been rented since July 10 started at $400 a week and only vacant a couple of weeks. The second rents for $650 started at $600 on handover Feb 11 and again vacant 1 week but with a new lease in place ready to start before first tenants moved out. As I say it varies a lot don't listen to the guys doing the selling, approach the agents send them the plans of what you are thinking of building and which builder there are good and bad in town. They are the people that know the area and what rents easy and what takes time. Chinchilla has more going for it then just mining and is a growing town, there have been many changes from when we first visited the town in 2009. Woolworths, a new motel and older ones done up. McDonalds and a new service station town centre end and another service station with a kentucky fries being built (maybe finished) at the end coming in from Dolby. We where there last Nov and more parcels of land where being opened up so it is very much a growing town that is not soley dependant on mining. What mining there is will be there for a long time, Chinchilla is not going to wind down anytime soon. Parts of Chinchilla do flood so again the realestate agents can inform you more about the risky area's they should be your first point of contact in deciding if its for you or not. A good property will rent without a guarantee secured to it.
Hi Matt we have 2 properties in Chinchilla both were house and land packages I can't answer your first question as we put in 20% deposit + costs using the equity from our own home. Rents vary depending on how many are available for rent at any time. So far we have been one of the lucky ones but have seen some sit for weeks going unrented so do be prepared for that and have plenty of back up funds. To get a better understanding of rents go to the estate agents not the builders or agents selling you the package, as they can give you a more realistic figure on what to expect for the size and type of house you are building. I am surprised you are getting a house and land for $350K great price if you are though there again is it on one of the smaller blocks they are now starting to do out there? Land has gone up quite a bit in value since we signed our first contract there end of 2009.As regards depreciation you should get more than $5000 just get a depreciation report done when finished all depends on cost of building & fittings etc. Also don't forget to take into account rates insurance etc too Goodluck
It also has to be a different solicitor to the one you are using for the purchase of the property if that is what the loan is for
I have to do it every time for the loan based on the equity in our home. The main 80% loan is fine but I always need an independent solicitor to sign off that I am aware of my responsibilities as a guarantor as I owe half our own home. The Investment loans are all in Paul's name only.
Its just a legal requirement by the government that the banks have to do these days
Jean
Congratulations on the birth of your daughter, may she bring you and your wife lots of joy and happiness, all the very best sleepless nights are well worth it. xxx
I agree with The Fox I have seen quite a few house's being advertised as dual income in order to attract double NRAS Incentive they are taking the plan of a 4 bed house and putting in a dividing wall to make it 2 dwellings. I don't believe this is legal but somehow they are being approved by some of the consortiums out there.
Thanks everyone
I guess my instincts were right, he was waffling on about how he wasn't there to sell properties but to help people get into investments all the usual set up a free consultation. Both of us had to be present etc etc. Well Paul is away 4 weeks then we are off to Asia for 2 weeks so fat chance of that. So then he said as I knew a lot about Nras etc he could arrange just to see me then if I liked what they would do could arrange to meet when Paul was home. Yes I know then it all changes and all of a sudden they want to delve into your finances etc etc. They must think people are silly and can not see straight through them, went through the website for them and they don't even have all the figures right in it.
No way will they be wasting my time, or Paul's when he is home that is for sure.
Just thought I would check in case they were legit
Hi Darryl
Glad my daughter and her boyfriend have decided to see some common sense and move. They are renting a 3 bed that shares electricity with the guy who lives below, there is also a couple in the 2 bed section next door but they do have their own meter. All 3 are tenanted they always thought the guy downstairs should not legally be there but is paying rent to the owner who lives elsewhere (he is friends with owner). Crunch came for them when the electricity bill came in at $570 for the quarter, they are never there always at work daughter works away 2 out of 3 weeks, no aircon and no heaters in the winter as there was a log fire. No idea what the guy below was running. One reason for high bill I noticed though was that is was water and power on same high tariff plus paying extra for green power and the owner also tried to pass on her late fee cheek of it. Should have been split 2rds to them and 1 rd to guy downstairs but my daughter had a cap of $260 in her contract so it saved them paying out $380. I did warn them but kids when do they listen only when its too late ha ha they have learnt their lesson and are looking for somewhere new to live.
I very much doubt this place will comply with regulations
Jean
Hi Alistair
We have just had to pull out of one at Coopers Plains had finance and valuation was good, it was the building that let us down.
Really disappointed but its back to searching all over again. Would still like an Nras one to compliment the other 2 IP's that we have out in Chinchilla. They are at the point were they are paying for themselves with the low interest rates and good rents
Can you send me some info on what you have and why some of them are pulling out and which area of Bundy they are in.
Thanks Jean
Jessicahsm wrote:Hi Josh, is Chinchilla a good place to invest now. I remember you indicating back pn 2011 that is not good to invest there. Could you please advise why you would not invest there? Thanks in advanceHi Jess
I can't answer your question as I am a novice but we do have 2 properties out in Chinchilla, both are doing well
There are 18 properties for rent at the moment mixed 2 bed to higher
There is still a lot of land being developed for both houses and units
Since we started our first house end of Sept 2009 there has been Woolworths, a New Motel older motels have been done up, There is also a McDonalds recently opened along side a new petrol station. At the end coming in from Dalby is another petrol station going up along with a KFC lots of other industry/business has moved to the area
There is still a lot of houses already built new and old for sale too though as well as all the new house and land/units packages being offered for sale
At the end of the day you have to do as much research as you can and decide if it is for you or not. Too get true rental I would look at realestate.com.au and not go by what you are told they will rent for or contact real estate agents send them the plans of what you are looking at and get a true rental amount that way. Its what we did when we first looked at Chinchilla.
Hope this helps a little
Jean
Hi Derek
Contract withdrawn this morning so glad I put the clause in to favor us not them regarding Building Inspection
If nothing else I have learnt a lot about body corps etc that I didn't know before
Not sure if I am off units altogether now but may stick with house's from now on at least you know it is just the one property that has to pass the mark not XXXX amount
In future I will also turn taps etc on to check for leaks too so that I know before I get to that stage again
So if nothing else I have learnt a thing or too and will be a bit more careful next time
Thanks Derek and everyone for your help back to looking for number 3
Jean
Well got the drainage docs this morning by email.
No drainage pipes along the side that concerned the building inspector at all
Very much doubt they would be able to put them in now apart from the cost that whole side is an easement for the electricity
I went back this afternoon for another look at this section and it really does need more drainage even my son thought so too
Talked to Paul tonight and he agree's with me that is it we going to let our solicitor know in the morning that we are pulling out due to the Building Inspection being unsatisfactory to us. So glad we had this in our contract with them.
Oh well holiday to Penang early March meeting up with my sister and brother in law from back home (UK) have a ball then back looking for IP 3 all over again
Hi Derek
Yes went yesterday got there early and no builders on site. I did manage to speak to a resident of block B (the 4 story block) that was finished before Xmas and asked if he had any problems. He said he did have something with the toilet but they were on the scene straight away and had it all fixed up. I did use my time to check around the outside of the townhouses to see if any had visible faults like mine(gaps around pipes) they didn't apart from the landscaping being too close to the cladding on all of them.
The agent and the handover guy for the developer plus builders site supervisor showed up just before noon
Ours was one of the last 2 being finished in the lead up to the Xmas break and nobody had actually been through to check it, by rights the agent shouldn't have given the go ahead for the inspection to be done was what I was told.I have also had this list emailed to me today. While there another couple of guys in management showed up from the builders side of things and not long before I left the guy who does the checks for the builder also showed up, for some reason don't know why he had been laid off by Walton's but has now been re instated, he was an older guy in the building trade over 40 years
We went right through the property making notes of what was wrong and needed to be fixed
The drainage the Inspector was worried about I was told that there are 2 pipes running along side to take the water away
I have asked to see the drainage plans certified by council for this but haven't received them yet
The termite protection wasn't listed only the date it was applied
This was emailed to me today they used a Plasmite Blanket with a 12 year warranty for protection
landscaping is to be pulled back to allow a visible view at all times
The leaking downstairs internal and external from the bathroom the Inspector thought that it might have not been connected under the bath
The builders said it is more likely something has been missed downstairs in the pipe work coming down as if it was from under the bath it would have been leaking into the kitchen below not down the wall next to patio doors, so they will remove the wall to fix the problem
The issue with the shower tap diverter was non existent it just needed to be turned a bit more then what the Inspector had done as worked ok yesterday
They are to drill holes and place in pipe outlets to the balcony the other balcony's did have this just our one that didn't
Hole around bathroom light they already knew about the electrician had placed the first hole where there was a steel frame and so had made a second they were planning on fixing after Xmas break
Other things where holes around pipes, gaps, no vent cap to waste vent on roof, wardrobe door to be replaced as trim coming away, circuit breaker loose on wall, loose shelves some of the paint work needs re doing on one outside wall.
They said everything would be fixed up and checked by both the builders and the developer before another inspection can be done.
Paul working away in WA means it is on my shoulders to make the decision to stay or pull out.
I am staying conditional until either I have a second Inspection and everything is to my satisfaction or if they don't send me the paper work about the drainage plans that I have asked for before then, then I will probably walk as why would they not send if there is sufficient drainage like they said
Anyway keeping options open at this point may go have another look tomorrow just to see what is being done. I am on the Sunshine Coast and property is Southside Brisbane so at least its not too far to go
Thanks Jean
Hi Richard
Valuation came out at purchase price
Builders defects that are putting me off
I admit they are only just going back in after xmas break and the blinds did still have to go up so maybe I did have it looked at early by the building inspector. Saying that I asked the agent if it was finished he said it was so what can I say there own silly fault I saw it when I did.
Hi Eric
We had the same situation with our PPOR offset before paying it all off. We do also have an offset connected to our IP investments but as I don't earn much and the IP's are in Paul's name I have a high interest online savings account where all our access money goes. That way Paul still gets full tax deductibility on IP's but we also earn some interest too.
TheFinanceShop wrote:Hi Jean,I just had a look and wow seriously. Are you sure the builder has a licence to build?
Do you know how expensive it would be to fix the storm water pipe and they didn't put drainage on the balcony?
People that do not understand NRAS will generally knock it. General stock (particularly those in Brisbane) are overpriced however if you pick the right property – the benefits are massive.
Any reason why you have gone with Heritage?
Regards
Shahin
The storm water pipe he is talking about is the pipe from the tank to the ground I noticed it dripping slowly so much just a case of sealing it as above ground issue not below Shahin, glad I went along as it makes it easier to know what each point was about
The builders were Waltons you would expect better from a big company such as this
I have agreed to meet them on Monday to discuss but they are in no doubt that we are on verge of walking away
$380 for report is priceless
