Hi Lilly

Welcome to the forums.

I would think that as the contract is now unconditional, if the buyers pull out you keep the deposit.

Remember though, that the agent is entitled to their commission (I’m fairly sure).

If your solicitor says different, ask for an explanation as to why. It all depends on what is written in the contract.

Cheers
Mel

my 2c for what it’s worth![biggrin]

In the ACT there is no land tax threshold either, so I’m used to paying it on every property. In NSW there is also no (or very very low) land tax threshold if you own properties through trusts or companies, so any of those investors pay it anyway. If they drop the effective rate then I’ll be happy about that.

As for the stamp duty – I agree it’s a bugger. As someone else has said, it will also go more to the govt coffers than to help first home buyers. I don’t really think it’s the stamp duty that’s keeping them out of the market – it’s more the sky high prices.

I really don’t like to sell any properties anyway, so I’m working on that not affecting me either.

Of note, immediately the news was ‘broken’ the ACT govt was pretty much called upon to follow suit ‘or else we will find all the first home buyers crossing the border to buy their houses’! Not much mention of the land tax (not an issue for us so obviously no mention), and of the stamp duty on sale.

Cheers
Mel

Rugby, that’s exactly what I was saying. Get a high throw – and then try to hit the seals/wall at the peak, which will throw it higher still.

If you hit the wall lower/earlier in the throw, it will not go so high.[biggrin]

Cheers
Mel

My folks taped the show while i was in bed catching up on my sleep []

So, I watched it this morning. I think these stories do need to be aired, to warn the uninformed who are the ones likely to get burnt.

What I didn’t like about the story though, was that all of the problems became ‘the bank’s fault’. The bank should have told us not to buy, the bank should have told us the valuation, they should have told us we were being ripped off, should have gived us advice.

I disagree. The second your bank manager gives ‘advice’ he/she can be prosecuted for giving advice without a licence. So they can’t, and don’t do it. I do think it should be mandatory that copies of valuations be given to the customer though – after all it’s their app fees that are paying for it.

The best way to avoid this issue, is not to cross collateralise – that way you’ll definitely find out what the IP is worth, as the bank will only lend 80% of what their valuation is. Again, these scammers aren’t going to tell the people this though.

SIS, it said on the show that VO only makes $10K per property (or so his people said). Wonder if they tell different stories to different people?

[offtopic]VO is a big fat guy! Watching him trying to get into his car was pretty funny. Obvioiusly he was still well fed whilst in jail!

Cheers
Mel

Hey all

Can you help me out with Spruikers 1-4?

I’m fairly sure that No 3 is Ed Burton – he says pay only $2711 tax on $100,000.

The others don’t ring bells though?

Possible candidates:
Brad Sugars
Peter Spann

ummm, can’t think of any others off the top of my head….

Cheers
Mel

First IP bought mid 1993 – Waterford West 2 bed townhouse. $112K. Rent $130. Value now $125K, rent $125. D’oh. Two tier marketers.

Second IP bought same time. Canberra 2 bed townhouse. $120K. Rent $120pw. Sold to friend in October for $260K. $20K discount for friend and no agent. Was renting at $210, but should have been $250.

Cheers
Mel

definitely family and friends happiness (and mine too – I keep getting told to include me [])

Cheers
Mel

I’ve been wondering that too Bear. Arty stopped coming to visit us when his work wouldn’t let him, but I don’t know what Pinky’s excuse is…

Cheers
Mel

Harbinger, did you pay the same price that it is now valued at? (This sounds like one of aussies riddles!)

I’m thinking the issue is the negative cashflow, which will be even worse while you are not renting it out, and at best you will have at least another month before a settlement on your sale could occur. First, get a tenant in!!

Second, talk to a mortgage broker to see if they can get you a better finance deal – if it’s valued at higher than your loan, you will do better too.

I’ll do a ‘knockout bid’ for the auction, and go for $210K.

Cheers
Mel

I’ve been told that some lenders won’t count your ‘guarantees’ against your servicability when looking at you for more loans…..

Cheers
Mel