Forum Replies Created
Seeing as there is plenty of equity in the PPOR could you borrow a further 20k on top of the required loan amount and fees and pay the interest on your IP loan upfront (which will be tax deductable?) and then use your wage and any income from your IP to pay your PPOR of quicker? Effectively just transferring your debt from non tax deductable to deductable.
Not 100% if this works but seems good in theory, maybe some more experienced investors may be able to expand on this
good luck
Davethank you to all for your opinions and comments.
I contacted the agent today and asked if the corner house has settled yet before i mentioned the problems. As it turns out they are at the same stage as myself and haven't reached settlement yet. It seems that they thought my houses were still for sale and no one would notice as the owner lives in the ACT. I managed to get about half way through my story before he said he was due back in a seminar and he would call me later today. I know this may be a usual excuse but i have given him the benefit of the doubt for today and will call him again in the morning.
As for the items that were removed being on the contract, I know that the usual inclusions and exclusions were noted but as i remember there was no mention of the fence. oh it did say that it was advised to have a surveyor survey the land due to the fences having fallen over.
I will see what the RE agent is prepared to do and if I feel it sufficient i will leave it otherwise i will take it further.
Noting i have about 100 photos of the properties i may have to use these to get what I am paying for
Thanks again
SURPRISE SURPRISE
the bank haas delayed settlement to monday at the earliest. it seems that everytime the broker or the conveyancer speaks to someone there they get a different answer to what is going on.
the latest is that we do require the miscellaneous application, but in the mean time they have told the broker that they are ready to book the final settlement in. this caused the conveyancer to try get settlement booked for friday along with the vendors conveyancer then having to get the vendors conveyancer to delay til monday (?) because the bank would book it in. i have been told that the file has moved further up the chain but i feel that the miscommunication has stretched to an extra pair of hands.
looking forward to seeing their excuse come monday.
also now have to wait 2 more weeks to get my "ok to start"date due to the construction company only issuing them on certain days.
all i can do atm is dream of my happy place : )
cheers
davei had a little bit of excitement for the start of the week, as far as i am aware we are still good for friday but i received a call yesterday from the construction company informing me that because the contract was signed over 5 months ago (even though i had the house modified and it took nearly 4 months to get to the footings cost stage) i am now liable for the increase in the cost of building the house.
total out of pocket has just hit around $5000
fingers and toes crossed to get this all back
cheers
davehello all.
firstly thanks mick. Its unfortunate that im not the only one this has happened to but fingers crossed i get the same outcomeas you from CBA.
I have spoken to CBA customer relations and explained that due to their delays it has cost me in lost rent, interest and building delays. The lady i spoke to said that until we have settled there is no figure on the losses so we cannot proceed. I am unsure if this is just a 'call back later' solution.
As for settlement, the conveyancer called me friday and confirmed that the purchaser has signed their documents and allowing a couple of days for bank processing and a couple of days for other work SETTLEMENT SHOULD BE THIS FRIDAY. Then i can pursue the bank for losses.
just did some quick figures on the losses, including rent and interest ( cheers mick on the idea of interest on proceeds) which came in at a rough figure of around $3500. seems worth pursuing a bit more now that there is a figure on it.
cheers
daveok if you think you need more information to help please feel free to ask.
i have 3 houses and a block of land.
i am trying to sell the first house i bought about 3 years ago.property 1 (trying to sell)
owe 143k
value 200k
rent 190pw (not rented now)property 2
unit. normal size house but in strata
owe 165k
vale 215k
rent 200pw (market rent approx. 250pw but step sister and her daughter live there)property 3 (PURCHASED NOV 09)
owe 244k
value 250k
rent 280pwproperty 4
land 350sqm
value 115k
owe 121k
potential rent 280-290pwprogress was made today. i called the CBA customer relations who led me from one section to the next then got told to get a new broker. very very frustrating. kept my cool and rang back and got a different person. found her to be more helpful although most of the info was like common info. i did manage to find out that the reason (according to them) they are waiting is they are missing a MISCELLANEOUS APPLICATION. due to the reshuffle of the security to loans, CBA reckon they require this document. i called the mortgage broker and asked him about it and he was informed by CBA that we did not need it ( he is looking through past emails to see if he still has the one where it mentioned that). i have every confidence that he is pulling his weight and he would have done what CBA told him to do.
as for the compension of all the interest i have paid since APRIL 14th, i called the financial ombudsman and explained the situation to them and asked a few questionsin regards to getting something back from CBA. she said i have a claim and fill in a dispute on their website. she also mentioned that it may be worthwhile calling the customer relations section and see if they can resolve the matter due to the financial ombudsman doing a lengthy, in detail inquiry.
i havent called the customer relations section yet. i need something to post tomorrow : )
oh and i havent got angry yet because i know that i wont get anywhere and then ill get more frustrated.
cheers
davefor info the current LVR is around 86%.
so i understand that they want to have all the funds available to ensure that the lvr doesnt rise but at the same time i want to ensure that the lvr doesnt drop because then they will want to charge me to LMI when i borrow money to build the new IP.
it seems like a very round about way but i want to sell this IP to fund building the new IP.
I am still not comprehending the fact that they can keep charging me interest on a loan which they are dragging their heals to settle and pay back, meanwhile I'm also paying interest on the land which i have already settled on and effectively losing potential rent money due to the delay in building of the house.
Is there anyway i can get the bank to not charge me interest or even 'threaten' them (in a very polite way because i will want more money out of them soon)just to get them to hurry up?
oh and to make things a little more exciting the construction company is sending me letters stating that if they dont start soon they will have to reassess the contract price because materials may have gone up in price.
what fun it is trying to secure my future.
dave
unfortunately yes they are. i know its a big no no but at the time i was paying a stupid interest rate with a non-bank lender and had the whole lot covered by CBA although each property has its own loan and security.
hello all,
just wanting to clarify a point
if you purchase a PPOR and happen to subdivide it, the sale of the new block has CGT with it. Yes?
But what if you live in the house, subdivide, sell the house you live in ( CGT exempt) whilst building on the new block. which will become your PPOR once complete.
will this help someone avoid CGT whilst making a profit and having a nic new PPOR?sorry if it sounds a little twisted but i have my eye on a property atm which this could apply to ( If it works)
welshy
Hello,
I have just gone through refinancing with Ryan Rawlins. he works for a company which i cant remember the name of because i only deal with him. i found him to be a great help in all aspects and i know for a fact he invests also. im not too sure what he knows about trusts though.
give him a call and find out
Ryan Rawlins 0433 809 522ps. he is up at 693 Albany Highway
thank you all for the comments, it gives me a bit of an idea what other people do.
i am looking at a property which would have a good return with just a paint but due to the size of the block i might be able to subdivide the back and maybe sell the land or refinance and if i can afford it without putting myself into too much det, i will build.
the thoughts of using an unconditional contract to your advantage is great so i will look at making sure i have everything ready before i put any offers in.
thank you for your past experiences, it gives me that warm feeling that a better price could be achieved.
more comments are welcome.thanks again
davidhello all
PLEASE REPLY, surely with the amount of investing knowledge and all the properties that members to this site own there should be more comments.
do you offer 5% or 10% below asking price or do you use the length of the settlement to negotiate a better price.
what about houses which have an asking price of $200,000+ for example. does this indicate that the seller wont look at offers below 200,000 or is this just a test to see what people will offer.
also thoughts on agents entering price ranges, ie $200,000-$220,000.thanks
davidthank you for your reply beaniemonster, at least you didnt lose money, just missed the opportunity to make some,
hey grunter, why would you go and do a thing like that. where are you based now and what did you do in the pussdavid
If you have any past success with a technique or even just a bit of luck that went your way please post your story.
I would also like those hard luck stories of the 'big fish' that you let get away by trying something or pushing the limits.
thankshello, thanks for the responses.
firstly the 63k i get a year is my wage from the navy. any rent on top of theatis just extra. i pay the loans out of what i earn then get the rent at the end of the month. i dont rely on the rent. i still have enough to live and pay the morgages.
the idea about christies is what i was after. would it be a good option to spend about 10k on the houses just doing minor work and presentation stuff then sell off and buy and build at say christies beach. i know that i will have to pay the tax man and fees so from where i stand i think that i would have to increase the profit a bit for it to be worthwhile.
the reason why i have so much debt is because i work in the Navy and i have the two properties rented out. the bank seen that as extra income so they where more than happy to give me more. i could have accessed another 100 to 150k but it would put financial strain on me. not good
thanks again for your replies[biggrin]
