Forum Replies Created
Unless fixed rate Early Repayment Fees are now not applicable for new loans
A Discharge / Exit Fee of $295 is usually charged to cover 'File Handing' (instructing solicitors & payout figures etc)when discharging the loan/mortgage etc.
In addition expect approx $200-$300 legal solicitors fees, although these could be higher
The Solicitors fees usually cover preparation of the Discharge & attendance at settlement etcThats about right
However you'll also need to have the transfer assessed by the State Revenue Office which should note on the transfer that, in this instance, should be excempt. You should be able to find how to do this on the SRO website
You may find that Land Titles Office will not register the transfer until it has the appropriate stamp from the SRO
Your Bank/Lender may also (ie should) wish to discharge the existing mortgage in joint names and register a new mortgage in your name only. Once the transfer is stamped the Bank may also lodge the transfer on your behald when they discharge/re-register their mortgage
In QLD you can now get $10,000 QLD Building Boost payment for building or buying a new house. This is separate from FHOG.
Relatively small amount but may help to tip the balance
Will depend on which State, however would suggest that you look at the web sites of the Land Titles Office in your State, most have some sort of guide for completing & logding documents etc.
Your Bank will need to consent to the change, and produce the Title etc (if applicable), but as the proprietors are not changing this shouldn't be a problem with the Bank or their mortgage
Have you signed any sort of agreement with the managing agent?
Property managers, often being part of a Real Estate Agency, will usually request exclusive rights to Lease/Tennant the property and will get an agreement signed which will also set out their fees & commision etc
If you signed anything you may have to stay with the agent, however the agreement should have an expiry (30, 60 days etc) if you have an agreement READ it to see if there is a getout/expiry clause
If there has been nothing signed, go with the other agent, PROVIDING that they actually do have a tennant ready to move in. Ask to sign the lease straightaway, subject to due diligence, and ensure the lease commencement date is within a few days etc
Would be fairly difficult with such a diverse usage and varied improvements
I could only suggest that a true value could only be arrived at from a registered valuer experienced in both rural & commercial properties, this could be $$$++
The valuer would look at possible value as just a farm but also include the Tourist facilities, probably on a capitalised basis or on a replacement cost basis.
However don't expect much value being placed on your plant and equipment and also the 4wd & walking tracks etcMay depend on which State and the rules appling, however unless emergancy repairs and/or safety hazard would usually be an unanimous agreement. Best to discuss with the B/C manager
If this particular owner wanted to replace their roof with simular materials i.e. Replace colourbond with colourbond of the same colour or titles with the same type/colour etc a marjority may suffice.
However with the question of being excluded from future re-roofing, although this may seam to be fair, an unanimous agreement maybe requiredDepends on which State and the actual circumstances (PPOR or IP etc) and if already jointly owned, best check with your State Revenue Office or solicitor
In VIC for example S/duty is often exempt if transfering from single to joint proprietorship i.e. 'Love & Affection' transfer for a PPOR
Probably best to obtain professional advice from your solicitor and/or accountant
You could also call the Vic State Revenue Office to clarify
Best speak with the local Council, and discuss your intentions/plans, they will be able to advise you what their or State planning rules/guidlines say about minimum width of access driveways etc and also iof the existing property, built on the boundary, is an issue or not
Without knowng where the property is it is difficult to advise
Others may be able to add but for Final inspection I would look ensure:
Property is clean & tidy and carpets etc in the same condition as initialy inspected
Note that furniture maybe covering up damage to the walls etc however preferably should have been identified in earlier inspection
Fixtures and fittings are as expected, has been known that light fittings and even Kitchen appliances etc have been replaced with lesser quality items prior to settlement
Garden is also neat & tidy with any 'Junk' etc removed or to be removed, also ensure that plants have also not been removed, pot plants are usually not included unless previously arrangedKeys to the property are usually provided by the selling agent once confirmation of settlement has been made however they are also sometimes handed to your solicitors/conveyancer at settlement. Speak to the agent and make/clarify arrangement for this
For a cash sale i.e. no lender involved, your solicitors/conveyancer should make arranges for you to deposit sufficient funds to their Trust a/c for settlement or you can also provide a Bank cheque. If you are borrowing arrangements can be made with your lender for the additional funds i.e. your contribution in addition to the loan and/or your funds may be given to your solicitor/conveyancer.
When in doubt talk to your solicitor/conveyancer as they are the people you are paying to arrange settlement, they should be able to advise in all the above
goldies wrote:Hi,I am not putting the family member on the loan docs but want them as a 50% owner.
Thanks.
As said depends on which State but usually fairly easy, often known as a 'Love a Affection' Transfer, see a solicitor who will be able to advise fully
However also check with your lender, if the new joint proprietor will not be also become a borrower they will have to Guarantee your loan.
Some lenders (if not most) may not like this situation especially if the family member is a dependant (i.e. not working) and or not living in the property (i.e. not gaining a direct benefit)Looks / sounds like a Serviced Apartment
There are differing opinions on these and will depend on your own objectives (income versus capital growth etc):
Pro's – Strong Returns (7.2% in this case) & Body Corp Fees, maintainance etc paid by tennant
Con's – Can experience low (if any) Capital growth & some lenders don't like them as security (and/or to be low LVR >60%)Definitley speak to the local council, you will find that most Councils will have a minimum subdividable size. it maybe 300 sqm or 250 sqm or something else.
If your block doesn't meet the minimum size you may still be able to apply for approval as an 'exception' however you may also need to engage a Town Planner and/or Architect (who may have Town Planner in their office) to submitt application to Council etc.
Assuming you may wish to build double story you will also need to deal with shadow overlays and privacy issues with the neighbours etc (overlooking their back yards or into their house etc) hence a good architect and/or town planner maybe required
I don't want to pu you off but If the neighbours object it could become a long & expensive process, I seen situations were costs have exceeded $20k to obtain planning approval etc which will reduce your profit
Just rented out my 2 bed Flat after repaint & new carpet, was my PPOR for 11 years so have a nice 6 year CGT exemption after moving in with GF.
Mmmmm… 2nd months rental a 5 days late, will have to discuss with PM, tennats late or slack processing by PM ??Getting some architects plans for possible reno/extension to GF's (soon to be bride) PPOR and discuss wether to sell IP (flat) to pay for reno's etc and also saving for a wedding & holiday/honeymoon
Also be aware that although you obtain a valuation from a Panel Valuer the lender, in this case St George, may not accept the valuation.
A valuation instructed by a lender for 'mortgage purpose' may differ from a valuation instructed for private / Market Value, particularly on a 'what if' scenario
To clarify, I have worked for a number of lenders/banks and sometimes such valuations have been rejected
Its the use of the funds not the security used that determine if the costs associated (interest etc) are deductible or not
Providing all the funds from the equity loan are used to purchase the IP they should be tax deductible.
However as always its always best to seek professional Tax advise
Depending on the actual works/improvements being undertaken, you may need, probably should, obtain consent from your lender. Such changes to the property without the lenders consent could put you in default of the mortgage conditions.
If the tenants intend to run a small business from the property and with such "improvements" the lender may consider the nature of the property has changed from residential to commercial.
I would strongly suggest that you sight and are happy with the plans of the intended "improvements" and that you also have a copy of any Building Contract etc. Also ensure that relative Council Approvals are also obtained to operate a day care facility
As previously advised any DIY changes could be dodgy which may cause issues at a later dateScott No Mates wrote:the insurance company has no relationship with your bank, you direct it where to deposit the funds, not your bank.The Insurance coy and the bank may have no direct relationship however as the Bank would have a mortgage on the property and this interest would be noted on the insurance policy the Insurance company must obtain Banks consent etc to release funds.
Although the OP has the best intentions to repair and make good the property the bank may require the insurance funds to be disbursed as they direct. If the OP reads the terms of their mortgage you will probably find a clause that relates to Insurance payouts.
Here is an example:
Insurance claims
5.1 You must do your best to ensure that proceeds from an insurance claim (including a claim by a governing body if the property is parl of a shared scheme) are:
(a) used to reinstate the properly or carry out
other works; or
(b) paid to us. (We must then use them as
set out in clause 21.)
5.2 Despite clause 5.1, if there is an insurance
claim and:
(a) the proceeds from the insurance claim are a material amount; or
(b) you are in default under clause 18; or
(c) (in any case) the National Credit Code does not apply to this mortgage,we may direct you to use or hold insurance proceeds you receive in a particular way, acting reasonably. If we do so, you must use or hold them as we direct.
5.3 You must notify us if an insurance claim is refused either in part or in full.
5.4 If the amount of an insurance claim is a material amount or you are in default under clause 18, we may, by notice, take over your rights to make, pursue or settle an insurance claim. If we do this, we may exercise those rights in any manner we choose, acting reasonably.Edit: To fixed formatting
The solicitor is making this recomendation to protect YOUR interests, I very much doubt it is a grab for money.
Sum may think that $150 To prepare and lodge a caveat, sure this is relativley simple, is a bit much but ask yourself how much is your own professional services are worth?
No I'm not a lawyer/solicitor but I get tied of people assuming that professional fees and/or trademans charges are just a money grap
If you think your that good just do your own conveyancing
