Forum Replies Created
Hi Aimee
It depends how disciplined you are. A 100% offset account is fantastic if you are financially disciplined but disastrous if you are not. My husband and I were not disciplined and the offset account was of no benefit to us. The best way for us to save money initially was through enforced saving, that is, to pay money straight out of our pay packets into the mortgage, pay full health insurance and get the 30% rebate at the end of the year, etc.
You just need to work out what will work best for you.
Cheers
K
Bad luck for anyone who entered long on 15th Jan.
Cheers
K
I have just sold a property in Darwin for $200,000 with a current rental return of $260pw. The place hasn't been painted for years, the furniture is old and crappy and there is scope to put up a gyprock wall to separate the bedroom from the main room bringing the rent up to at least $300pw in line with other units in the apartment.
There are still properties out there. Mine was advertised on realestate.com.au. You just need to look and think laterally.
Cheers
K
I agree with Mackar
I would never even consider negotiating with a purchaser who wasn't even serious enough to put their offer in writing.
Once I have received a written offer I consider the potential purchaser a serious purchaser. I will then negotiate with that person. If I was to negotiate with every purchaser who even made a verbal offer then the property would not be available for other potential purchasers.
If I accept a verbal offer from a purchaser I then have to wait a couple of weeks for contracts to be drawn up etc. If the offer is not a genuine one then the property is off the market for at least a couple of weeks until everyone wakes up to the fact that the offer was not a serious offer. Then when I put the property back on the market because a contract never materialises other potential purchasers see that it has been off the market and come back on and assume that it is because the contract has fallen through because of finance (I am asking too much) or an inspection. That makes my property less desireable.
While purchasers can always exercise their rights to cool off on a contract, I would think it unlikely that a purchaser who was not serious would go to the effort of signing a contract and then bailing.
Just my thoughts.
K
Hi James
You need to work out whether you want to buy the property or not. If you are looking for an excuse to get out of the contract then the unauthorised amendment would be a good excuse. If, however, you still want to proceed with the purchase then you should do just that, regardless of the RE Agent's activities. Don't try to second guess the vendor's motives.
From an ethical viewpoint, I don't think that this is an opportunity to drive the selling price lower. The RE Agent has acted illegally, yes, but using his illegality to further your cause is, in effect, condoning what the RE Agent has done. Nowhere have I seen karma bite as badly as she does in property dealings.
Either the deal is worth it or it isn't.
Just my thoughts
Cheers
K
It all depends on the wording of the contract. Let me know the EXACT wording and I'll let you know my thoughts. I say that with the usual disclaimer that it is not intended to be taken as legal advice and that independent legal advice should be sought.
Also, when was the RE Agent advised orally that finance was not approved? Why was the bank so late with getting the letter out?
Cheers
K
The seller can only keep the deposit once the contract becomes unconditional and the seller then defaults. In this case I presume that the only special condition was that the contract was subject to finance being approved by date … at time … When that time passed the contract became unconditional and the seller then defaulted. If the seller advised earlier that finance was not approved then the seller would have been entitled to receive her deposit back.
BVG, exactly what time did the fax arrive at the RE Agent's office? There should be a record of that somewhere. Given that there is $20,000 involved I would be chasing every last detail. Why did the bank wait for so long to send the letter? Were there any other conditions, eg building, pest, electrical? If so, what date were they due? If there were and they were due later, then if the inspection clause is wide enough, eg (subject to satisfactory ….. inspection) then I would be paying a lot of money for a very thorough inspection were I would inevitably find something not to my satisfaction and then rescind on that basis.
Other than that, I think your friend is out of luck. I'm sure she is not ready to hear this yet BUT, that is just another very good reason to always use a conveyancer. I am a lawyer by trade but in the numerous property transactions I have done I have never and will never do my own conveyance. I would rather rely on someone else's indemnity insurance.
Cheers
K
Wow
I read this thread looking for opinions on the actual question Phil asked and holy mackarel, my head hurts just from looking at the graphs without any attempt whatsoever to understand them.
At the risk of being a party pooper I'm going to give my thoughts to Phil on the question he originally asked: "Is property investing all it's cracked up to be?" (in case anyone else has forgotten what the topic was)
IN MY OPINION, the answer is Hell yes. My husband and I started investing in property 4 years ago. We now have $1.5M in equity. We have both quit our jobs, bought the house of our dreams and spend our days raising our babies (with a bit of property development on the side).
Property investing is everything it is cracked up to be and more.
Cheers (because here in the Adelaide Hills it is wine time)
K
Hey James
He has not only breached his obligations under the relevant RE Agent Code of conduct but he has also committed a criminal act of fraud. Report him.
Cheers
K
Hi ajmartin
I use Specialised Business Solutions in Brisbane. They are both accountants and financial advisers although I only use them as accountants. They are absolutely fantastic and have set up structures for us that have pretty much pre-empted our business decisions. Their number is 07 3221 1100 (know it off by heart) and I can't recommend them highly enough.
Cheers
K
I use Conair all the time up in Darwin and have had no real problems with them. My air con guy up there says that the cheaper imports break down all the time. Conair is the cheapest brand that my air con guy will install. They cost about $500 and then another $500 to install.
If the cheaper units break down and are under warranty the company HAS to repair or replace them but often you have to send the unit in which is all too hard.
As for replacing it, I'm sure that you are under no legal obligation to replace it but if you rented a property where there were working air cons and then one broke down wouldn't you expect it to be fixed or replaced because you rented it on the basis that there were working air cons?
I just think that tenants are a really valuable asset. If a tenant makes a request and I think it is reasonable I have no problem giving them what they want. If they want replacement of something that has broken I will do it without hesitation.
Cheers
K
You can also charge penalty interest for the late settlement. The amount of interest you can charge will be in the standard contract.
Speak to your conveyancer.
Cheers
K
There would be two reasons your house is not selling:
1. The agent is not doing his/her job
2. You are asking too much.Given that your agent has sold other properties in the area recently I would suggest that your house is overpriced. Why don't you call the agent and ask why your house was not getting enquiries?
Cheers
K
If there is no timeframe on the inspections then you can get out of the contract. Even if it is dated you can probably get out but it becomes more difficult.
I assume that the special condition contained words to the effect of "subject to satisfactory pest inspection …" If you notified the vendor prior to the date on the contract that your inspections weren't satisfactory then you would probably be able to get ouf of the contract on the basis that you notified the vendor prior to that date. Any agreement with the vendor to repair the damages would become a new special condition, one that would have been better having had in writing although that is not necessarily fatal to your cause. If the vendor has not satisfied that condition, ie, fixed up the termite problem, then that would be an avenue to get out of the clause.
I'm not sure about the standard contracts in VIC but in other states, if you default on the contract the vendor is not only entitled to your deposit but to 10% of the purchase price. The problem the vendor will have will be going to court to try to get this money from you. Alternatively the vendor could force you to continue through with the purchase, but again, the vendor will have to go to court, which is expensive and probably not worth it.
Take it up with your conveyancer. If your conveyancer is not acting in your best interests then report him/her to the relevant authority. Alternatively, go to another conveyancer.
This is just general information and not intended to replace independent legal advice. Without knowing the specific wording of the contract it is hard to know your avenues from here.
Good luck
K
Hi Mystery
You could have a sunset clause but it is not really necessary. A clause in the contract only takes effect once there is a valid contract in place, that is, once both parties have signed the contract. Obviously if the vendor has not signed the contract the sunset clause is useless.
You should just be able to give a timeframe to accept the offer (which is all that a contract signed by the purchaser is) verbally. Unless you buy in the name of a company there is always a cooling off period and technically, you would be exercising your right to cool off if the offer has not been accepted by your designated timeframe but is signed by the vendor after that time.
Love that cooling off clause.
Cheers
K
I had PRK surgery done about 6 months ago. My eyes weren't suitable for LASIK. LASIK is when a flap over the cornea is peeled back and PRK is when the cells over the cornea are scraped off. Apparently PRK is a little more painful and the healing time is greater.
I am now 39 and I LOVE it. My eyes still occasionally get a bit dry but other than that it is fantastic. I hated wearing glasses and I have two little kids who thought it was just hilarious to take my glasses off. Every morning I take pleasure in the fact that I can look around without having to put glasses on.
Just do it.
Cheers
K
When it still hasn't sold in two weeks' time go back and offer $275 …
Cheers
K
I agree with trakka. The best way to have one person know all your financial details is to work with a (good) mortgage broker. With over $5mil in property we still have all sorts of problems dealing with banks who continue to refuse us finance based on our lack of servicability (despite having nearly $2mil in equity).
We are just now building a relationship with one person at CBA but that is because we are doing some developments and have gone up to commercial status. But even as recently as 3 months ago we had banks saying "no can do".
Having problems with lending always has and continues to be our single biggest impedement to continuing growth.
Cheers
K
Hi Narellen
Unfortunately yes, you are kidding yourself. The property is only half yours. The other half belongs to your brother. Unless and until you ascertain that the people living there are not there with the permission of your brother there is nothing you can do. If it turns out they are there with the permission of your brother then he, as a half owner, is entitled to do with it pretty much as he wants (with the exception of selling it). You gave him permission to live there rent free. You did not say anything to him about subletting it. Although admittedly if the people do know him, it is not a very brotherly thing for him to do without speaking to you first.
The first thing I would do is find out whether these people are related to your brother. If that is the case, you should express your concerns to him. If they are just squatters you will then need a stat dec from both you and your brother to the effect that neither of you know these people and neither of you gave anyone else permission to live in your house. You can then go to the police and have them evicted (and possibly charged) with trespass.
Good luck
I will be keen to hear how it goes.
Cheers
K
The offer is still valid until either:
1. if you wrote an expiry time in the offer and that time lapses
2. If your offer is rejected
3. If the vendors make a counter offer (which is essentially a rejection of your offer and then an offer by the vendors to sell)Was your offer in the form of a signed contract? If so, then the contract is binding from the time the vendor countersigns it. If you bought the property in your own name then you can exercise your right to cooling off. If you want to buy in a company name then there is no cooling off period.
If your offer was just in the form of a written offer to purchase and not a signed contract then a contract will not be binding until both you and the vendor have signed the contract.
If you want to put a deadline on it then simply fax a letter to the agent with the deadline and indicating that the letter is to form part of the contract.
I think the scenario is one of the following:
1. The RE Agent is being slack about getting in touch with the vendor
2. The RE Agent is having difficulty getting in contact with the vendor (for perhaps a genuine reason)
3. The vendor is waiting to see if a better offer is coming.My incllination is that it would be no 3. I would be sending a deadline to the RE Agent.
Cheers
K
