Forum Replies Created
Hi, they will at least look better painted, if gyprock is too expensive then paint. This will need sanding to scuff the surface get a cheap electric sander and run over the lot. See the local Solver store grab water based undercoat and solver maxi wash and a short nap roller and you may need to brush down the grooves. All the best.
Newby23 wrote:Holy Cow Batman, I think we may be about to buy our first IP.Last week we viewed a place north of Adelaide that went to auction today. My husband was snooping in the kitchen and 'happened upon' the paperwork that said suggested reserve $180 000. There was only one non vendor bid which was 165000 and it was passed in. This property is under 'instruction from the bank'.
We heard the other registered bidders (2 obvious builders that wanted the land only and said they weren't interested in being contacted, the other a friend of neighbour who bid that didn't look interested in negotiating either) fob off the agent and we left our details. He is going to call us after getting instruction from the bank.
My question is… would it be wrong to start with a offer subject to finance/building inspection of $160000, ie less than highest bid.
With some TLC and about 5 – 10k we can rent this out for about $240 – 260pw which will make it CF+. We will also look to split off rear of block and sell on to release money for next IP.
We are seeing our accountant tomorrow to whip up a company/trust structure. I have researched and Steve McKnight and Dymphnoa Boholt both advise using this structure, but our accountant says he doesn't think that the company is a necessary expense. Do you agree?
Borrowing deposit and splitting fees as LOC from mortgage via broker. Remaining mortgage with another bank so as to not cross collateralise.
Does this look like a reasonable plan and good buy to you more experienced investors? Any suggestions?
We appreciate all advice offered. Look forward to hearing what you have to say.
With thanks,
Michelle and Ade.
Hi, go ahead put in an offer, it might be the best they've had all day. Put the offer in writing stating your terms building inspection and finance etc. I would only do a building inspection after signing the contract and during cooling off.
You can't know if your offer is good or for that matter the only one.
Agents/vendors may say that the price you offered is too low and you need to raise it to be in the ball park or may say, is this your last and final offer because we have other offers coming in now. You really need to pre determine your final price if you are even prepared to change your first offer, or make the offer and hold your nerve, don't budge.While agents will tell you it's under the vendors reserve and they won't let it go any less it's not always the case. As a vendor at one of my auctions the last bid was well below the reserve and the agent came in and puts you on the spot and tells you this is what the market is saying it's worth by this time most vendors are trying to figure where will they get all the money to pay agents fees if I don't sell now after all If he's right the marketing costs are just going to keep increasing. Often vebdors will crack in the heat of the moment and you can get a better deal. I didn't, i said your sacked gave him some marketing costs, sent him on his way and sold 8 weeks down the track for $40k more.
Unfortunately you didn't have an emotional vendor there but nonetheless, your offer is conveying to the bank, what the market is saying. Who can know the reserve, give it a shot, the bank or the agent don't really care for another $5k, the agent only wants a sale and the bank only want to be seen to be doing the right thing by offering it to auction to see what the market says. the sooner it's out of their hair the better.
Hi Caz,
As jmsrachel mentioned, a reasonable cost would be in the $10-$15k range for a new kitchen excluding appliances. the cost depends on the size of your kitchen, eg how many cabinets are required as you realise big kitchens need more cabinets and more bench top and it all adds up. Other cost factors are finishes, eg vinyl wrapped or patterned doors, 2 pack paint stone bench tops and glass splashbacks or tiles. Going to auction can be good especially if you can install yourself or even buying seconhand.Asking for referrals on this forum is a great idea, also ask work colleages and friends, never know what it may unearth.
For a lower cost kitchen go for a laminate kitchen with laminate benchtops, these are at the lower end but can be made with good quality materials. If you want to save money don't mention soft close, standard drawer runners and cabinet hinges are good, a few foam or plastic bump stops in the right places and you'd hardly know the difference. If you get soft close, you'll know the difference by your bank account.
If you don't have the confidence or time to do the job yourself, I would suggest you get several quotes from smaller kitchen businesses or go to cabinet makers. Contact a couple of smaller local businesses ask them to come and quote, they should be glad for the opportunity. Start at the back of the kitchen section in the yellow pages, line ads are ok even. Also look in your local free paper go for the smaller ads in there.
Monitor your responses, who gets back to you quickly, who turns up when they say they will, who takes the time to explain the finer details to you. Ask to see pictures of previous work or testimonials. Ask lots of questions, what other things, costs you will have to consider splashbacks, tiles, electricians, plumbers etc. How long from time of order till installation, how do they want to be paid.
Put in plenty of research and drive a hard bargain, it can be fun. When you get a bargain kitchen all your friends will want to know where you got it.
If you were in Adelaide I'd be pleased to offer you a quote, however as that's not the case, I hope this may help.
Securing a construction loan as an owner builder may be possible but in a roundabout way. When I decided to be an owner builder I also considered trying to get a construction loan, however with little knowledge of how these loans work it all seemed too difficult.
What I did was to get a Line of credit loan secured against another property I owned. This worked out quite good as it's a lot like having a big credit card limit but at housing rate interest. Enabling me to pay trades as they completed their work.
As a first time owner builder I found it pretty difficult dealing with some tradespeople and not without a lot of problems.
It all did get finished a lot longer than it should have and cost more as I had to spend more time fixing things myself without getting paid. I am living in the house now and it's real good.I would say you really must do your homework thoroughly, get recommendations on the trades companies you use, see their work elsewhere first, find out as much as you can about them ask others that have used them if they are happy with their Job. Work with a signed contract with each trade, setting out exactly what they will do and a time frame for completion with a clause of withholding payments if not completed on time etc. Try to meet some other owner builders and discuss how their prioject went.
In my opinion owner builder is definately not for the faint hearted.It seems to me you want to be an owner builder and secure a construction loan and I doubt it will happen as simple as that.
I have met some people since my house was built and they told me that they had just done what you want to do. They did it with the help of a builder friend with the appropriate licence. As far as I remember they had the builder draw up the contract to get the loan but I think they also had another contract between themselves and the builder, an agreement and it must have said something about who was doing what and who gets the money because they said they paid a fee $15K to the builder for his role and somehow they controlled the money.
It seems to me there are some ways around it but you'll need to be very creative or get some more creative input from the forum.
Best of luck with your project.
Hi, while investing in the USA, does anyone have any ideas with regard to paying tax on profits. For example will I need to pay tax in the USA and then pay tax on the profit again in Australia.
It seems accountants understand things here in Oz and I could speak with someone in the US and they will understand things there but can't advise with regard bringing profit back to Oz etc.
I have heard that it is best to set up an LLC. in the USA and in a low tax state eg. Nevada, or florida and this way the particular state tax is low or nil and then you would only pay federal tax of 15% but if this is so, then How is tax then calculated on bringing funds back here after US tax.
I have no understanding in this area but would welcome comments from anyone who has invested there and can give an insight into this situation, thanks.
USinvestorWannabe.
Hello businessglobal,
You're quite right, time is wasting, holding costs, lost opportunity and the buyer has not complied and I am being taken advantage of. These people do fit into the category you mentioned "seen it all" mob.These people made no attempt to keep in touch or tell me anything, I had contacted them once and at that time he was vague said he'd left it in finance guys hands, conveyancers hands even said my conveyancer was holding it up and didn't know what was going on.
On June 2, I sent a letter threatening termination, penalties, legal action, resale and any shortfall in price etc. I sent it registered and person to sign and signature to be sent back to me as confirmation. Mid last week I called the post office he hasn't picked it up and still not picked it up by today.
However mid last week I faxed it to my conveyacer, he faxed it to their conveyancer and finance broker, so the buyer was contacted by the broker and the broker called my conveyancer and said hold up on further action, we'll settle Tuesday.
That was something I was going to have to see to believe I thought this sounds like more bullshit. After all it was supposed to settle 3rd. April nearly about 11 weeks ago, I can tell you I'm totally pissed with it all.
Surprise surprise, I thought this was not coming, Today it settled! I had to give the key to the guy, so I rang and told him he can find it under the mat he said sorry it took so long and nothing else. so to this day I still don't get it, weird mob.
They paid rates and taxes etc, since orig settlement date and nearly $10,000 in penalties.
Needless to say today is a great day! I would like to say thanks to all who put forward your valuable comments, much appreciated, thanks again.
Regards,
David.Hi, you mentioned you already got a quote from 2 agents to sell the property but Ia m not sure if they are 100% correct.
They won't be 100% but you need to satisfy yourself that they are in the ball park.One tactic sometimes used by them leaves you wondering which to choose, they have been known, to over quote to win the job, can you imagine that.
You could choose the one that gave the low quote because he might be honest or could he just be lazy or should you take the other?????
Ask one of the agents to give you a print out of all property sales in your area in the last 6 months any good agent can. Then compare with what they have told you, evaluate yourself if you can't come up with a small range, maybe don't sell yourself because this is just one part of the selling process the first part.,
As you know you could get a valuer at a cost .
Best of Luck.
Hi, list your stuff on ebay, check prices on there first though, because it seems microwaves are hard to get rid of I've seen them left them on the roadside verge for weeks before they dissappeared, I just gave 2 away to people that have never had one and had no intention to get one. Salvo's don't want electric stuff either.
Best of luck.Hi, I put my property on Domain, they allow private individuals and it looked pretty damn good, they have a huge clientele following as opposed to anything else available.
I also put a really big sign out the front, it looked just like a REA's. The property sold and the buyer came from the sign.
This is the third place I've sold privately, in one instance a property was with an agent and went to auction.
I would not let it go at auction and the agent said he would be unlikely to get a better price so he did not want to perservere any further.
I ended up selling it myself 10 weeks later for $40,000 more then auction price and saved the $8,000 fee.
However it's not for everyone and it's a bit of a crazy game. You really need to understand some of the tactics REA's use.
Best of Luck
Hello,
thanks Linar as you and the others have suggested it does seem to me that I do need to follow this course of action.I do need to seek out some legal advice and I am interested to know your lawyer contact.
If any one has actually been through this, either as a buyer or seller, I would like to hear of your experience.
I'll keep this updated so you know the outcome.
Thanks,
Anxious.Hello Guys,
I appreciate your views. As you mentioned I'm at that point to either terminate the contract or as Scott suggested sue for specific performance.I did not know you could do that but that is what I would tend toward rather than terminate. I also fear that the market may have slipped back over this period of time possibly more than double the $38k. So to re market may not produce a lot of joy.
There is no REA involved it is private. I also don't know why the buyer is not settling from what I could understand they were not having trouble with finance this left me thinking that they had just changed their minds to buy for other reasons.
I have also been considering offering them some vendor type finance agreement if that is the case.
Terry as you mentioned I really don't want to tie this up in court. The place is not in rentable condition and would need thousands spent to make it so. Meanwhile my holding costs are around $700 pw. in interest only loan.
I'm still open to more ideas or questions, if anything comes to mind, please let me know.
Regards,
AnxiousHi,
I recently built with a Hebel alternative panel and I am really pleased with the result really great insulative qualities and quick to build.My supplier of the panel in Adelaide was more than happy to give me a list of installers to choose from.
I would think that if you contact CSR the hebel supplier they would be pleased to do the same.An advertisement in the paper under tenders has resulted in many trades contacting me for various work and quite worthwhile in getting several quotes.
Good luck.
Hi,
I should have said that this is in South Australia so some legal aspects may be a little different.Thank you Rhys Roberts I may need a barrister, if he is in SA let me know.
Terry It seems it's time to get some legal advise. Also in SA as in NSW you can issue a notice to complete and this has been done and now I can terminate the contrct. From what I hear after a person cancels the contract the purchaser does not want to lose the deposit so will then slap a caveat on my property and try to regain their deposit.
They'll get a lawyer, I'll get a lawyer, they'll send letters to each other for a while and at great cost, it will eventually go to court.
I can only wonder how long this takes, how much it will cost and in the meantime I can't do anything with the property and what will be the outcome.
Thanks for your comments, if you have any thing to add or anyone else has some experience in a situation like this please comment.
Regards,
Anxious.
