Bruce, I’m thinking that the first problem you’re encountering is that you are buying in a unit trust, and therefore cannot claim a PPOR on that basis as the trust will own the land, and therefore the buildings.

Cheers
Mel

1468[}]. I must, I must, I must increase my posts!!

Muppet, you need to tell me what file I need to copy. My brother lost a game for my Dad (and he was not happy!), so it’s now reset (again) and back to about 54 wins with no loss…..

I’ll just have to increase my signature so it’s as long as SIS’s – that will get me over that 25 word minimum requirement[]

Cheers
Mel

I have done a couple of settlement day inspections – definitely needed to do one where the guy was a shonk. Included furniture, but tried to say that two single beds were joined together and just ‘looked’ like a double bed.

I just said ‘too bad, you should have read your contract – now get me a double bed, or we take this through the solicitors’. Surprise, surprise, the double bed that was there on offering for the property was returned!!

Others I haven’t done though. lately my purchases have been off the plan, and so we have a settlement a week or so prior, and note things for the builder to fix, and then we get a further 90 days to chase them up.

Cheers
Mel

I’ve had some tenants that demand a lot of things. We agreed that at one of them, they could have a power point installed on the balcony (I didn’t really want it – but they demanded it for their tank for their turtle or something) but my brother had to do it.

We installed one, and then they cracked the s***s and refused to pay cos it wasn’t where they wanted it. i wouldn’t agree to one anywhere else, but apparently they went and installed one anyway. They’ve since demanded deadlocks – it’s a secure complex, with locks on all doors and windows – cos the garages were broken into. I just said no way.

Another tenant wants to install an alarm – AND they will leave it behind when they go!

Another one also demanded deadlocks – but as they are paying $60 less than market rent, and therefore heavily -ve geared, I just said that I cannot afford to do this at this time. It’s a similar unit to the one above. The agent and I agreed that if they really wanted deadlocks on the balcony door, they could install them themselves. I don’t know if they have.

I still sent these guys movie tickets at Christmas though – aren’t i a sucker![:X]

Cheers
Mel

WAF, I think it’s because not as many people understand commercial as residential. We all live in a house/unit so we know what to look for.

With commercial it’s very different. There also aren’t many books on the topic. The finance can be more difficult to secure, plus they are higher rates. One other problem is that often the prices are much higher ie starting at $1M.

There are more strata units etc. that you can now get for <$100-200K, but again, not as many real estate agents, so it’s harder to find the deals.

Yes, some peole do it very successfully, but I think it’s a matter of biting the bullet and having a go. A lot of people having got into commercial will never touch residential again – because of the reasons you mentioned.

Cheers
Mel

I agree with Kay. If the numbers stack up at the asking price – and you know it’s a fair price, why not pay it?

Although there are some vendors who will list a price, recieve an offer of full price – and still hold out to see if anybody wanted to offer anymore. An agent rang me a few weeks ago after I’d been through a townhouse on its first open (a friend is interested in living in this suburb so I thought I’d have a look while she watched her son play cricket). I got a call the next day (Sunday) asking if I was interested. I explained what I was doing. She told me that there had been a full price offer, but if my friend was serious, she could have a look the following week and put in an offer.

I couldn’t quite believe it – although I guess it was a booming market – but gee, if you put a price on that you’re asking, and you get offered that price, surely that’s good enough?[]

Cheers
Mel

alliwant, it depends on how long you are planning to work I think. If you’ve got at least another ten years that you’re happy to go to work, then a -ve house could be ok.

If you can purchase your two properties where the cashflow is close to neutral or positive, then do it. If you can get a CG property, then that will certainly help you later on. IF you get good growth, you could sell it, and purchase some more +ve ones to support you in your retirement.

Alternatively, if you don’t want to work very long, you probably need to look to buy as many +ve properties as you can.

Have a sit down, work out when you want to stop work (realistically), how much you reckon you will need to live on, and work backwards from there to see what you come up with.

Cheers
Mel

With regards to declining finance – does it always get registered?

I got declined late last year and haven’t seen anything on my credit file to suggest that I was knocked back – it was actually my trust that was knocked back, but it was on my personal servicability.

I subscribe to baycorp and haven’t seen any decline hit my file?

Cheers
Mel

Hi Westan, welcome back.

Hope the land of the long white cloud is treating you well.

I think the Kiwis remember that ‘incident’ because they haven’t won anything since.[:p] I reckon they’ve paid us back many times though – the biggest payback would have to have been Ansett.[V]

Cheers
Mel

Wasn’t my family good enough Guru? []

Cheers
Mel