Forum Replies Created
Thanks for your response.
The nature of my renovations would be classed as "initial repairs" therefore they would be considered capital expenditure.
Is the only way to obtain a depreciation schedule is via a quantity surveyor? Are there any other options available?
Thanks
Hello everyone and thanks for your responses.
The area I'll be covering is 28 sm. Having looked at a variety of types of vinyl i think i'll be running with the "vinyl tiles" as they are very durable which is quite important to me as im looking to rent the unit out.
Thanks Djay, i checked out western distributors in sunshine…they have sooooo much stuff there.
Thanks so much your prompt responses.
I forgot to mention above that at the time of signing the contracts i did NOT opt for the property to be vacant at settlement.
My conveyancer tried to negotiate with the vendors conveyancer who advised that the vendors dont want to give the tenants a notice to vacate as they are concerned of the potential for lost rent if the tenants were to leave before settlement.
So realistically it appears that i will have to wait 60 days after settlement before I can actually do anything, ie increase rents or commence renovations etc.?
Thanks for the response guys.
Xenia – I'll definately be using a property manager, however I want to ensure that I dont end up paying for the "property managers" incompetence. Ultimately I would like to meet with the shortlisted applicants (by the property manager) and select the best applicant.
Keep the responses coming!
Cheers
Thanks for the response guys.
Xenia – I'll definately be using a property manager, however I want to ensure that I dont end up paying for the "property managers" incompetence. Ultimately I would like to meet with the shortlisted applicants (by the property manager) and select the best applicant.
Keep the responses coming!
Hi Richard,
I dont have any personal debt except for my PPOR.
Your response was what I was thinking. Its always good to get another opinion. Thanks for your response!
In relation to the above would it be better to have to loan for 90% (i wont pay LMI) or for the full purchase price 100% plus fees. This is for the investment property.
Cheers!
Spiro cas – im looking to rent it out
Thanks for your response.
The existing bath has a shower currently which i guess can be replaced without too much hassle. I could certainly put a shower screen on
I havent really investigated the avenue of reglazing the bath. I'll look into that.
Cheers
Hi Tony,
I'm not sure if the same applies in your state, however in Victoria agents generally dont accept offers before the S32 is available. In such an event you would certainly want to make your offer subject to satisfactory review of the S32.
I would recommend you try and view the "other" offers in writing by simply requesting it from them agent. Although the agent is not obligated to send you this information (generally they will site the privacy act but its always worth a try). I personally dont like getting into an "over the phone auction" as the offers cannot be verified.
It would be worth knowing if the other offer is conditional and what the settlement period is (this gives you some bargaining power should you not be able to match the "other offer" in terms of price.
With regards to "Is the 48 hour clause a good idea? I thinks its imperative, however I would be making the offer after reviewing the S32 as the property cant be legally sold without a S32 (again depending on state). Or you can always make if subject to the S32, but would need to review the deadline depending on when the S32 actually becomes available.
Also, it might not be necessary to place a 20% deposit. I try and to keep the deposits to a minimum as its essentially money that isnt working for you. Try a shorter settlement (if thats what the vendor wants)and no conditions with say 5-7% deposit. With that said I dont know the situation you're in in absolute terms…something to consider though
Anyways…hope that helps
Good luck
Krisoops…sorry wrong thread. Please refer to my other post titled "deposit bonds"
Thanks
I was wondering what the CGT implications are for the above transaction. Also, what would the base dates be in order to determine CGT? Contract date or settlement date?
Cheers
I was wondering what the CGT implications are for the above transaction. Also, what would the base dates be in order to determine CGT? Contract date or settlement date?
Cheers
Thanks for that Richard. Its rather insightful. I will have to see what the legalities are in Victoria however.
How would I go about setting up an "option contract"? Will i need a solicitor?
Cheers
Hi Ben! Thanks for your response. Can you please explain the "put and call option" in order to avoid stamp duty.
Cheers
Hi everyone!
Firstly, I'd like to thank everyone for their opinions.
James I do apologise for not responding to your post. I know its always nice to be acknowledged.
Also, thanks for doing the quick calculations. Because I work for a bank I can borrow up 90% and avoid the Lenders Mortgage Insurance.
I think I'll be going with an IO loan without cross collaterilising them. I will also keep with the same lender due to advantageous interest rates.
Now the next stage…getting the renovations organised. I negotiated a 100 day settlement that will be handy
Regards,
Kris
Hi Terry
Why do you say the 2 properties shouldn't be cross collateralised? What would be the benefits and disadvantages of doing it this way?
Thanks
Hi Richard, the 50k being drawn from a line of credit
Trying looking in the inner west. That would be your best bet given your budget to live within 10km from the CBD
Thanks guys for responding.
Richard can you explain what you mean by: (a little further)
"If you intend to buy it as an PPOR and then turn it into an IP down the track i personally would borrowing 95% LVR (even 100% maybe worth considering) and putting the extra funds into a 100% offset account"
Also, I wont be paying LMI. My loan allows my to borrow up to 90% and avoid LMI.
Terry: How long would I have to stay in the property to avoid CGT for up to 6 years? I think its 2 months however not certain, can you please clarify.
Thanks for the responses so far guys!
