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Hi Shahin sorry went with Heritage as our other investments with them under a professional package plus did have our home loan with them until we recently paid it all off. We don't pay the package fee it is waved as we have above a level of borrowing with them and no on going or establishment fee's either
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 property was in the Cargo Development Coopers Plains developer/consortium BHC they have a big building group working for them. I admit I had seen several of the townhouses and apartments that were finished ahead of the one we chose and they had all seemed fine
So glad we had a building clause in
Shape wrote:JPS25 wrote:Got past the solicitor who was against NRAS on the grounds that it was social housing*slaps forehead* NRAS is NOT social housing…
To be eligible for NRAS, the tenant NEEDS to be working….
I know Michael its laughable
Not looking forward to him finding out we are pulling out unless the builders can give me good reason not too
Even though it will have nothing to do with NRAS got one over him when the bank ok'd it and valuation stacked up ok not $20-$30K over
Hi Shahin just copied and pasted what was wrong into an email for you it was a list of 16 and that didn't include real minor ones that you expect.
Jamie I am Heritage Bank
I did mention when picking up loan docs about reviewing it in light of report and that we were getting a friend in the building business to look at the report for us and meeting up with the builders before making a decision she agreed its best to find out now than later down the track
Well I jumped through hoops getting this one
Solicitor didn't like it because it was Nras or social housing as he called it
I made the contract subject to finance and also subject to both the valuation and building inspection being satisfactory to Paul and 28 days on everything
Our bank asked question after question but the 2 loans did get approval by them not signed any loan docs yet but do have them
Valuation came out at purchase price
This left Building
We had inspectmyhome there on Tuesday I went along too so I got info first hand
Well not impressed with the foreman in charge of the building that's for sure he wasn't there but obviously had not been doing his job
As you have gathered it definitely was not a satisfactory building report
Builders say they will put everything right
I have also had a friends son take a look at the report he has been in the building trade main trade carpenter for 30+ years and has been a supervisor/foreman for the last 12 at least
His answer You got it walk away as very shoddy work
Given body corps is involved I do think that is what we will be doing as we still have a week to go before going unconditional
So glad we put the building clause in and had the inspection done
So looks like we are still at 2 IP's for the time being number 3 will have to wait
Oh well now I have to cancel the bank loans too after all the hoops, can just see my solicitor saying told you so even though it was for a very different reason ha ha
Thanks for everyone's help along the way
Jean
IP 3 all approved just waiting on loan docs
Holiday to Penang for 2 weeks all booked for March we are looking forward to meeting up with my sister and brother in law from England there I haven't seen them for 3 years be 8 years for Paul
Lots of great company sun food and drink what could be better
Great advice from JacM
PPOR recently paid off first 2 IP's doing well, they will be cash flow positive after tax. In the middle of applying for finance for IP3 hopefully it will be off the ground in January. This one will also be cash flow positive after tax. Will be getting low on equity so will have to wait a bit for IP4
Yes I have been checking the for sale, sold and for rent in the area for a while now and also the past rentals on another site.
Its a nice quiet area or seems it as I have gone for a general walk around a few times. There is a mixture of old and new about but yes happy with the area from what I have seen on foot and from driving around when Paul was home.
Will let you know how it all goes
Thanks
Thanks Derek
Having our solicitor insert the conditions on Tuesday and witness signing of the contract
So glad I got a stamp made a few months back as I would be in there all day if I had to hand write the Power of Attorney stuff over and over
Thanks everyone for your help
Hi Scott
I think I understand what each amount is set for.
I am more interested in whether the level for the Insurance is set right, that everything is fully covered, plus enough going into the sinking funds
I did speak to the Mark from Ernst who are going to be in charge of the insurance side of things and he said that it was just a guide at the moment but shouldn't be far off
Anyone know what they are like ?
I guess its just all new to me just trying to make sure I have checked everything I that I should
I spoke to the agent on Saturday and he said the building will be covered for the first 6 years under builders insurance
Thanks again I have learnt a lot of everyone on here as you have all been there done that at some time or other and your help and advise and time is really appreciated
Hi Richard and JacM
Seeing him again on Tuesday as I told him I wanted to put subject to valuation satisfactory to Paul in along with a building inspection one too. After Paul sent him an email and followed through with a call to him he is finally going to do it for me, I want to be covered in case it does fall short.
Purchasing direct from the developer/consortium and I know from the paper work the agent only got 0.75% commission plus we got it down by $15K more if bought from marketers so hopefully all good.
Hopefully this time instead of criticism he may actually take the time to advise on Body Corps which is the new bit to me
As I said I didn't like what he said or should I say the way I felt treated, but it did make me stop and think before deciding to carry on with it so good and bad criticism does have its place I suppose. At the end of the day you have to decide to choose to listen and act or ignore it
Hi Scott
I don't think we are as the high rise have at least 2 extra columns of costs that the townhouses don't have they are looking at $3300 and above depending on buy in and size the townhouses are $1850 up depending on size. Certainly hope not I know it did cross my mind but with the units having at least two extra costs added I thought that might be towards the lifts and other associated costs of higher buildings.
How would I be able to find this info out ??
Thanks very much for your help Body Corps is a bit of a minefield
Hi Derek
No Pool glad to say. There are lifts in both the 3 and 4 story unit buildings they have been slugged extra charges compared to the townhouses.
Our BC fees are set as $1726.56 plus allowing $128.26 for insurance so we will be up for approximate $1854.82
BC's for the whole 69 units is set at $182,320.14 of which $6875.12 of it is the approximate cost of Insurance.
Went to have another look today, should all be finished by mid Jan looking good
Seeing our solicitor Tuesday to sign contract by POA for Paul as he works away and he is adding a few clause's in for us that we have asked for.
Being over Xmas I put in for longer finance of 28 days and that the remainder of deposit to be paid on settlement when we did the expression of interest so have only paid $1000 as the holding deposit. So just adding subject to valuation and building inspection satisfactory to Paul into the contract.
Hopefully by mid to end Jan we will have our 3rd IP all going well
Hi Richard
Thanks for bringing this post up again
I went to our solicitors with a contract in hubby's name for our 3rd IP (I have POA) and he was very critical of it
I know it was an Nras one and he openly admits he knows nothing about Nras and just assumes its social housing which it isn't.
We have found a decent one only 12km out of the city southside that we would buy even without Nras as it fits all criteria such as transport schools hospitals university all close by
He did make me re-think the risks that he pointed out they all were really the same as with any investment property which is why you take out Landlord insurance. I then talked it over with the other half and he still wanted to go ahead with it all as do I
Although our solicitor was very critical as to why we would want to do this, he was the same over our 2nd IP too and that has turned out well, it did make me go away and make sure this is what we want to do
So really even though I may not have liked the criticism he made me re think what we were doing which is good to do even though we still don't agree with him
As said above you have to listen and learn but go with your own gut feelings at the end
We are still learning all the time with the help of everybody on here
Wandoan is probably a good hour past Miles about 2.5 hrs in from Dalby at a guess
Short leases probably need to be done this way but should have been in your lease that you signed with the agent. They shouldn't be able to change it to suit them when they feel like it if it is not already there.
You need to check your lease
No point changing agents very much doubt there is more than one unless you can get someone from Miles or St George to manage it, but on short lease's I doubt it
You should be getting more than enough in rent out that way from all the mining companies so shouldn't be hurting you too much
Definitely in your offset as will will help reduce the interest added to your mortgage
We started investing in properties end of 2009 and have now paid out our PPOR
Everything extra now goes into an online savings in my name ( I am not earning so no tax) and Investments in hubby's name
We do have an offset with IP accounts but choose to use it just for rents in and interest out
Agree with JacM use equity not cash for IP's
Thanks Richard and Scott
I will definitely do a building inspection best to know know than a few years down the track
Body Corps Management is going to be through Ernst but are not signed up until buildings are officially finished and cleared by council mid Jan. I spoke to Mark who will be managing the insurance for the complex of 13 Town house's and 56 units split into blocks of 20 (3 level with car park underneath) and 36 (4 level), who said the insurance would be with CHU underwritten by QBE.
Yes I do have the projected Body Corp for the first year the town house is $1726.56 without insurance. Insurance is projected to be $128.26 or $6875.12 for the whole complex.Sinking fund first year $21,120.17 and admin $83,704.85. The units have a few other Levi's imposed due to lifts etc all in with Insurance $182,320.14 for the first year is proposed for the 69 lots plus on site managers office and storage spaces car parks etc
Richard I will make sure we receive a certificate of currency for the Body Corps Insurance
Thanks so much for your help
You guys on here are great I have learnt so much from you all
Jean
We built our first house in Chinchilla, handover was in June 2010. We had it valued in Augest this year as we are in the process of building a second there, almost complete, and it has gone up by $50,000 just on the banks valuation. So I agree with ALF there has been a lot of capital gains over the recent years. Rents are moving slowly upwards to no where near Karratha though. My son rents a room in a 3 bed out there for $450 a week thats just a single room.
Hi
Ok the $2000 was on top of the already fixed price contract for a new investment property, so this is what they said we would need to pay above our already agreed contract price. This is why it seems low as stated above the type of brick used wouldn't have to be factored in they could use anything. They are also the developers of the estate and are nearing the end of it now, not many more to be built. They have built the majority of homes but not all on the estate.
Yes I agree it does or would give street appeal, but at the end of the day we want to hold it long term so there will be maintainance further down the track which as an IP we don't really want.
Also when we do eventually sell it may not be everyone's cup of tea and therefore limit the number of possible buyers interested in it.
It is in a corner position with lots of street access so the builders wanted to make it stand out which is why they offered to do it in render and yes it was going to be the whole house not just the front.
We have decided to go with brick instead, it will be our second Ip on this estate the first being in stage one and this in stage 2.
Oh and the $5K was taken off the contract price right from the beginning before contracts were signed.
Thanks very much for your helpful advice and comments we are still very new to this so was very appreciated.
JPS25
