Forum Replies Created
I agree with Richard
Your brother's bank has said no. This means that the finance clause (if there is one) has not been met and the contract can be cancelled. If the developer has now reduced the price, this means that a new offer is on the table. An contract cannot be amended unless both parties agree to the amendment, even if it is a reduction in price. Any extension of the finance clause is irrelevant. If finance is not approved then it is not approved.
Your brother only has to say that he is not interested in signing the new contract. That is the end of the story.
Cheers
K
Because the market is slow at the moment, it may be worthwhile asking whether you can buy under non-auction conditions, that is, put down a smaller deposit, have it subject to various conditions such as finance, building etc.
The agent can only say no.
cheers
K
Hi freelance2020
I would LOVE to hear new strategies about how to tackle the current market. My problem is that the majority of the doomsayers offer no strategies, only condescending comments about how everyone's property is now worth 10% of what is was 3 years ago and that we are all idiots for wanting to continue investing in property. I read one comment this morning about how a bank should be sued for lending a young investor $400,000 to buy a property!! This is not a helpful comment or strategy. It is just offensive and I am sick of seeing every post turn into a self congratulatory rant.
K
WJ Hooker wrote:Scamp,
The forum was getting boring until you came back and set it alight with discussion and ideas from both sides, its great to hear both sides of the arguments.
Thanks for all inputs. I'm sure there are lots of readers like myself who are interested in hearing from all the forum participants.While I enjoy reading discussion and ideas from boths sides, the same people banging on about the same old argument in EACH AND EVERY post (and then turning post on completely different subjects to their same old claptrap) is becoming very tiresome.
K
Have a look in your local paper. I was about to get a new kitchen installed in a reno I am doing at the moment and the cost was $5500. Then I found a second hand one locally in fantastic condition for $200! It is a perfect fit for the design we want. Including installation and a new benchtop the whole kitchen will cost about $1500.
Hi Frosty
To answer your question, get your solicitor to draw up the early access clause. That way you get what you want. The most open ended clause is to the effect of "the vendor allows the purchaser access to the property prior to settlement for the purposes of renovation". That clause gives you a lot of latitude. If the vendor has a problem with that clause, then let them come back with a tighter clause.
Cheers
K
I may be wrong but it seems to me that you have joined the site because you are so unsure about whether you have made the right decision. This suggests to me that not only are you are unsure, but you have gone to the trouble to ask property investors their thoughts. It seems to me that you are VERY VERY unsure!
It's a buyers' market out there. There will be lots and lots of opportunities for you to purchase in the next year or so. You are asking all the right questions and from my reading of your posts you are leaning very much towards a house rather than a unit.
My suggestion would be for you to "cool off" on the contract, spend some time on this forum, start researching an area that you want to live in and take your time with a purchase. The last thing you would want to be doing at your age is kicking yourself for making a $400,000 decision that you regret.
The deal of a lifetime comes along every week or so.
Cheers
K
, I have to question whether you should proceed. Obviously you are very very unsure
"I would imagine Steve was busy selling this kind of property over the last few months and thats why he waited till now to post this."
That's a big call Crashy… Steve, I would be keen to read a response. Do you own property in mining towns? If you don't, did you? If so, when did you get out?
Cheers
K
Hi Whiteknightoz
I think so.
The auctions are great if you can see what you are getting. Flatpacks, carpets, flooring and other items that are wrapped up can be of very dubious quality and often aren't worth the hassle.
Cheers
K
A couple of years ago my husband did a property development course and met several people at the course who had done the RESULTS program. What astounded him was that there several of the RESULTS people hadn't bought any property. Here they were at another course that cost $3000+ and still hadn't made a purchase. He also met some RESULTS people who had gone on to much bigger and better things.
My point in telling you this is that some people use the information they are given and get out there and invest. Others are "gunnas", gunna buy a property when the market settles down, gunna buy a property after they have done just one more course, etc etc. This is not a reflection on the content of the courses they are given; this is a reflection on the mindset of the individual.
Good luck with the course. I will be keen to follow this thread and see what you end up doing.
Cheers
K
Hi Crashy
I have just read this thread and what immediately jumped out at me was the fact you paid the relet fee. That fee is a charge by the PM to get a new tenant in the property, as part of a contract between the PM and the owner. That is not a fee that you should be paying; it should be paid by the owner.
I see it has been addressed now and appropriately refunded.
I would be refusing to pay any rent until the problems are fixed up. Let the owners take you to the Tribunal. However, in the meantime, I would be looking for a new place to rent. It doesn't sound like either the owners or the PM are going to be easy to deal with.
Cheers
K
Hi Michael 888
My comment about cynics was in relation to the comments you, others and admittedly I myself have made when a person comes on the forum and sings the praises of a particular company/course/book and more often than not eventually reveals themselves to be linked to whatever it is they were spruiking. I just wanted to establish that I was not in any way related to the TAFE course.
Sorry if it came out wrong. I made the comment at about 4.30am and abviously didn't check it before I posted it. It didn't come out like I intended it to.
Cheers
K
I have seen them at the Homemaker auctions in various states. Try graysonline.com.au.
But a word of warning: the quality can vary greatly. Often what is in the box does not match the display, cupboards don't fit, granite benchtops don't cover the benches etc.
If and when you do buy one, make sure that whoever you buy it from will give you your money back if it does not match the display.
Cheers
K
That makes it all far too difficult. I think you would have to treat each transfer of money between entities as a loan. I have my properties in several trusts and companies and occasionally I need to use money from one entity for another entity. When I do that I record it as a loan between the entities.
To my mind, any benefit received would be far outweighed by the time consuming record keeping and the extra money I would have to fork out to my accountant to unravel all the "loans".
cheers
K
Did the course in 2007 and loved it. There is no "barrow" to push, most of the lecturers are property investors themselves and so they walk the walk. Just about every aspect of investing is covered, from finance to legals to renovating to developing.
If you want to get a pretty detailed overview of property/investing and you don't have a particular strategy in mind, then in my opinion, this is the best value for money course around.
Given the number of cynics on this forum (that includes you Michael888!) I should add that I have no involvement either with the course or TAFE. I just think that credit should be given where credit is due.
Cheers
K
Hi Melanie
I don't see a problem with white tiles.
When I build or renovate I choose my colour schemes in the hope that people will walk in, look at the property and say "that looks great", walk out and then five minutes later ask themselves "what colour were the tiles/carpets/walls?". That is, I choose colour schemes so bland and inoffensive that they all just blend in.
Smallish 150mm x 150mm white tiles won't offend anyone and will certainly make the kitchen look crisp, which is the look you are going for with a white kitchen anyway. As soon as you choose colours then you will polarise people. I am a big fan of the mint green tiles that appear in lots of white kitchens these days but would never put them in a house that I am just selling because I am sure some people would hate them.
I am currently 6 days into a planned 4 week $20,000 reno. So far I am under budget but I think that the time will blow out. I was in the house within two hours of settlement to pull out carpets, but with two young kids (4 and 2) my energy flagged a little after that. I have got the floorboard sander and polisher booked in for 17 Feb in the hope that a deadline will force me to get things done but I may have been a little enthusiastic.
Keep up the good work
K
K
My take on it is that the vendor is probably selling for personal reasons (debt, marriage break up etc) and the REA doesn't want to disclose the exact reason.
As soon as I know that there are "personal reasons" behind a sale, especially if the agent has hesitated before answering, that is my cue to go in very low with a cash offer. "Personal reasons" often mean that the vendor is desperate. REAs often give more away by not answering you than they do by giving you an answer.
I may be wrong but the worst that can happen is that my offer gets rejected.
I don't see why you can't put the rental income from IP(1) into the mortgage account for IP(2) and then have both mortgages drawn from the same mortgage account. It doesn't matter where the money goes as long as you account for it on paper.
As long as you record all rent as income and all interest payments on the mortgage as outgoings and keep them separate on paper, you should be fine. I have held up to 20 properties as the one time and just use an Excel spreadsheet.
Cheers
K
Hi emptyvessel
Asking what hidden extras there are in building is like asking how long a piece of string is. There is an unlimited list of what might not be included, or unanticipated or unexpected costs. I'm sure that even the most experienced property developer occasionally gets hit by a cost that he/she didn't anticipate. I expect in that case there would be an allowance for contingencies, but the hidden costs are everywhere.
I know that a lot of builders these days do a "turn key" package which essentially means that on completion you can walk into the house and live in it. As far as I am aware, there are no hidden costs. Someone on the forum who has had experience with a "turn key" house might be able to confirm this though.
Good luck with your property investing. I think that the best time to get into property investing is as soon as you can.
CHeers
K
Hi Andrew
I'm not an accountant but I think that your deductions will be reduced by 2/52.
Cheers
K
