Forum Replies Created
Kev
From the top of my head, closing fees will consist of
Stamp Duty (avaliable from state revenue, or many websites will calc it for you if you input value – check out links on this site)
Solicitors Fees $500-1000
Mortgage Stamp Duty (not sure, ask a broker)
Loan App fees
Adjustments for rates etc at settlementCan’t think of any more at the moment.
Houses – freestanding, with backyard.
Townhouses – generally strata titled, with some common walls, courtyards. Lower maintenance
Units/flats/apartments – some say there is a difference, but I can’t remember the ‘definitions’. Generally many small units joined together, many times multi storey. Possible underground parking. Also strata title. Many common walls (obviously)
Duplex – two houses on one block, (I think) joined together, often mirror image, or identical.Hope this helps
Cheers
MelSure Fibejebe, if you like. The other thing that began to concern me about the ‘Club’ (not a club, more a business/real estate agents one stop shop), was that they now sell properties in many many localities, including Mt Druitt in Sydney.
I agree with many of the comments in those other threads you found, esp re the ‘advertising’ brochure. Although I still do read it every month, to see if there are any new ideas around.
Cheers
MelYes, Merry Christmas.
Hope every one has had a good day.[
]Cheers
MelI don’t beleive that Bear is acting as an RE. If he does manage to tie up a property with an option, and onsell that option, then he has effectively sold ‘his own’ property, and there is no law that says you must be an agent to sell your own property.
Cheers
MelFibejebe, they ALWAYS mention how their services are ‘free’ right?
Well, with the three properties we bought, they recommended we go to Westpac for the loans. Westpac got them all valued, and every one came in at about 10-20K less than purchase price (on prices of $178-190K). This seriously killed how much we could borrow, and they wouldn’t even look at giving us extra money on my partner’s free and clear home.
So we ended up going to St George, who were happy to give us the loans (80% on IP, with LOC from PPOR funding balance) on purchase price only.
We bought in good locations in Brisbane in 2000/2001. By the end of last year, we were lucky to be $10K above purchase price for any of them – some came it at PP.
When we saw the settlement statement, where we saw the disbursements, we saw that Lisson (KY’s private company) was paid somewhere around $10-12K (can’t remember the exact figures now). I accept that they would get some money – acting as the ‘agent’ but $10K is the commission we recently paid on the sale of a $390K house.
My bank manager also mentioned recently that – before they set up their own ‘inhouse’ finance – he did the finance for the branch manager here, and he said that she certainly didn’t make her money from her investments, it was her income as Branch Manager that was quite substantial. Again, I don’t begrudge her, she was awesome to deal with (and has since left to join Wise – founding member), but it’s just little things like that that have all added up to a bad taste in my mouth.
I would definitely recommend you contacting RE’s in the area, and perhaps an independent valuer before going too far ahead with it.
Cheers
MelGuys, yes I agree that they are negative cashflow, and wouldn’t touch them – except maybe as a resale from a owner rather than from DHA.
BUT, when you say the management fee is 16.5%, that covers all maintenance as well – so really, it’s not thaaaaat bad.
Cheers
MelBassla, you could alwasy ask them for a counter offer.
Cheers
MelAndrew, I guess it depends on how you do it.
If you were to buy this unit and live in it – would you pay market rent, or would you and your parents split all costs?
What sort of demand is there for these apartments/area? Is it likely to resell at a future date for a profit? Is it a demand area for tenants?
If you definitely need to live in the area, and can afford market rent, an option could be to set up a family trust (if you’re going to get into investing in a reasonable way this might be a good idea anyway) and have it buy the property. Then you can rent from it.
When/if you sell, you can then distribute the profits in the most tax advantageous way at the time – you are not locked into 50/50 or 33/33/33 or anything like that.
check out http://www.gatherumgoss.com and look at the manual Trust Magic.
Cheers
MelMichael
Land tax, rates etc. etc. are all claimable against your property income.
Cheers
MelSome of ours in the ACT have tripled. According to the govt anyway. But what are rates and land tax based on? So who gets an increase in $$$ because of this increased ‘value’.
call me cynical….
Cheers
MelI think that it ‘used to’ work, but now if more than 50% of the company’s shares are transferred you pay stamp duty on the value of all assets.
I think Somersoft forum has discussed this a few times.
Cheers
MelRedwing, we found that they weren’t particularly upfront when we bought 3 through them.
We only found out just how much of the pie they got when looking at our settlement statement from the solicitor AFTER settlement.
Apparently they also have a referral bonus if you refer a friend who buys. We didn’t know about this, and so of course our ‘Support Member’ (this phrase is now trademarked!!) didn’t pass it on to us – it must have to come out of their cut!!
Cheers
Melkay, what I was suggesting is I guess similar to what SIS outlined.
If you can ‘tie’ the property up for a couple of weeks – like an option I guess, that would give Bear two weeks (or timeframe as arranged) to onsell or the option would lapse, and then it’s free again for all comers.
Cheers
Melconfused, mate, click on the Profile button at the top of your screen.
Cheers
MelSMTM
I think there is a ‘benchmark’ rate set every year by the ATO on these sort of loans, so yes I would imagine it would be around the 6-7% mark. An accountant or the ATO could tell you.
As for how to set it up, I guess it depends whether it will be secured, or unsecured – perhaps check out your bank’s mortgage and copy the relevant bits, or ask the accountant/solicitor for advise. You would need to ensure that the company is being run ‘properly’ so that the director’s don’t get in the s**t.
Cheers
MelIsn’t Meriton one of the companies that will ‘vendor finance’ you into a property? I doubt that Trigubof is really worried – from what I recall Meriton do not borrow from banks, they are completely self funding.
If some of his sales do fall over, either he could finance them himself, or take the deposit, and then onsell them again, perhaps making more money than before. Either that, or I’m sure he could afford to hang onto them almost indefinitely.
Cheers
MelS.I.S. I think you are far too modest.[
]Although reading about you in API would probably just make me even more jealous![
]Cheers
MelSIS, my Uncle has just bought his second place in a town of under 1000. It’s 40 km from the next big town, and I think a few people enjoy the commute. They’re cheap, but as long as they can get a tenant (one of the tenants is on the dole so the rent goes direct to the agent from Missing Link) they pay for themselves.
Cheers
MelBear, Pisces hit the nail on the head with what I was going to say.
If you can somehow tie the property up – maybe for a couple of weeks, then present it to your list of people that you have now who are interested, then that could work.
Cheers
MelYou could also purchase another property. It is only on selling either that you would need to determine which had been your PPOR at the time the two overlapped. BUT, you would lose the CGT exemption on the other one for that time.
I’ve seen it somewhere that as soon as you move out, you should get a valuation done on the property. This then will set the ‘value’ for CGT purposes if it then becomes subject to CGT.
Cheers
Mel
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