Forum Replies Created
Hello,
can you point me to the ATO ruling on the stamp duty concession for Canberra IPs? I purchased one last year and my tax agent is telling me I am unable to claim stamp duty. Any help would be appreciated
thanks
Mark
Hi Waydo77,
I recently (last Sunday morning) finished a cosmetic renovation interstate. We settled on the property on the Wednesday afternoon and I wanted the property available for potential tenants to view by the following Monday. The renovation included the installation of curtains and blinds throughout, pruning and gardening of the front and back, laying of new flooring in the kitchen and dining room, some painting, new cabinet and shower screen in the bathroom, repainting of laundry trough and a thorough cleaning, plus other little jobs.
We tacked it this way,
firstly worked out what we could do and what we couldn't do. By this I mean if you need electrical work done and you don't have an electrical license, then you will have to organise a tradie to attend. So in my case I needed a shower screen installed. It only took a few phone calls during the settlement period to get three quotes and arrange for a detailed measure. I then organised for the install to occur while we were there.
Then I organised a trailer, and all the tools and materials I would need. As per fingerscrossed's post above, we worked with Spotlight, Lincraft, Bunnings, ie companies that carry the same stock across Australia. My wife made the curtains prior to settlement, and we took them there after settlement.
Then, its a matter of setting your timeline. I took annual leave from my job and planned my travel times and how much time each job would take. We drove up on the day of settlement, took the keys and the very first thing I did was to remove the existing shower screen. I knew I would have to repair some tiles and regrout before the showerscreen guy arrived so time management is essential.
We then hung curtains, so my wife could make final alterations on site, I laid floating floors, the new cabinet, repaired hinges, lights and all the little things. The shower screen guy arrived on time and I was able to inspect his work before paying him.
I wanted to take this approach so that I could check his work because a lot of the time, I find some tradies can be less than satisfactory and if I am dealing with an unknown tradie interstate then I want to be there to check everything is fine. Please don't think I am knocking tradies as I have met and worked with some exceptional ones, they are the ones to stay in contact with!!
We came pretty close to getting everything done, but there were a couple of little jobs that didn't get finished but these were scheduled to be done after we left.
Here are some considerations:
consider where are you staying (in the property?). If not, how will you secure your trailer and tools?
Look at the weather forecast. Will it affect your time line? I can answer this, yes it will (paint drying, wet grass etc)
Research everything you can before you go. Ie, what are the local recycling centre hour of operations and costs, or are you going to use a rubbish skip?
How far is the local hardware store? We spent each night finalising a shopping list for the next morning of what we needed. I was at Bunnings each morning as they opened to minimise multiple trips.
You need to be prepared to roll your sleeves up and get stuck in. We pretty much worked 15 to 16 hours days for the three and a half days but the results were worth it. Take before and after photos too, as its very rewarding. The last thing we did was organise for the agent to have photography attend to update photos on the website, to maximise your efforts.
Our property has just been listed for rent and looks a lot better. It is very very feasible to do an interstate 'cosmetic' reno, just needs some though.
Best of luck!!!
Hello Joandchels,
I am interested in why you are trying to do this yourself and not use a solicitor? Are you also going to market it yourself or use an agent? I have recently purchased in ACT and, being from out of state, I was surprised by the detail in the contract and vendors statement (It included the contract, all searches, EER reports, termite reports, building reports etc etc). Basically the amount of detail and transparency made me very comfortable buying interstate (as an IP). If you were to do this out of a kit, you might lose some of the appeal and potential buyers. I'd say use a solicitor, especially with the complexities invlolved in a lease hold property.
regards
Mark
Hi Carolyn,
why are you asking about Geelong? Is it because you live there or grew up there? If so you probably have some good local knowledge about the area. If you live in the area then that's a good starting point, because if you are happy to live there, then so will other similar people.
Have you gone for a drive around those areas? If not, its a good way to get a feel for the area, see how much development is going on, and see how people treat their suburb. Call the local planning office at the council. Also, look at real estate sites for past sales history and price trends.
The more popular property investing magazines also have data in them every month that covers every suburb, so for under ten dollars, a read of a few of those will help you narrow your search.
Also, what's your planned structure? Is $270K your deposit plus costs, or your total price?
regards
Mark
Maybe its only the two answers….. thanks
It's hard to comment when we don't know the amount of equity/deposit/income you have.
regards
Mark
I would ring the agent and call him on it. Say you have been told its still on the market and find out if thats true, and if so, resubmit your offer. Real Estate agents tend to not be transparent in their dealings, so if you have been told something, there's certainly no harm in chasing it up. Your offer may be accepted.
Have a look at this site….
http://mortgagehouse.com.au/construction/construction-costs-per-square-metre.aspx
regards
mark
Further to Catalysts comments, in some states the agent may put in several vendors bids, such as here in Victoria. Its an attempt to get the price closer to the reserve, so the reserves may have been in the vicinity of those figures….
Mark
Hello Nath,
Its great to hear all the encouragement and advice you are getting. It does sound too good to be true, but definitely go along, you can learn a lot from watching auctions. I've been to a few lately where there are simply no bidders and you can learn from them too.
I don't fully understand the delay with getting your funds from overseas but if it's a probate issue, I wouldn't be committing to spending the money until it was actually in my account. If you enter into a contract to pay 290K and you are late, it's going to cost you (especially if the vendor is in financial trouble him/herself). You may have unexpected delays if it is a probate issue.
Please keep us updated, Did it sell? how much? How many punters showed up?
Good luck
Mark
Thank you Terry
Hi Limefroggy
you could try MBS (Metro Building Services) in Ivanhoe.They offer a full service for all the permits etc. You would still have to find a draughtsperson / architect tho.
regards
Mark
Yes, and yes.
I think its a good area for an IP. Large blocks are getting scarcer there so it might be a good spot for sub division or knock down and rebuild. I would not be paying more that the median price though for the suburb. Reservoir has a broad mix of good and bad bits though. You would get a feel for it pretty quickly by driving around the surrounding streets and having a look at the level of 'civic pride' displayed..
regards
Mark
Readers Digest 'Fix It Yourself' it contains everything and is specifically written for Aust and NZ readers in terms of standards etc.
ISBN I 876689 28-5
Ive used this book for an extension and renovation plus many many repairs.
cheers
Mark
I lived there for two years (several years ago). The town is well laid out, good shopping, really good schools, services a large agricultural area, and has two major defence facilities close by. Also has a Uni etc, great town overall.
There are generally heaps in your local library. The Idiots guide to real estate investing is a pretty easy read, written for an australian audience. Don't be put off by the title.
I'll do it for $35K.
Just kidding, don't give this guy your cash, total Scam
A friend of mine is in a similar situation, and was looking at an independent valuer. Everything we read and everyone we spoke to advised us that real estate agents will over value and banks will undervalue. The cost of valuers will range a little bit, I just had a 2BR unit in Melbourne valued and it cost $185, but my friend was quoted between $400 and $770 to value a 3 BR house (again a Melbourne property). I'm not sure but prices may vary state to state. Now a real estate agent will value it for free, but you get what you pay for.
I think if you do a few searches for similar properties in the same and neighbouring suburbs and look at the VERY recent sales data it will give you a good idea, but it wont be completely accurate.
Hope this helps,
Mark
There are numerous books that cover due diligence, pop into your local library and go to the investing section, I'm sure you will find a hand full that give different approaches to this process. Bonus, they are free, too!
