Forum Replies Created
hi dr house. sorry you had this experience. never heard of no agent website, but i have known agents will ask private sellers to list with them.
pity you signed with them. did you sign and agree to the sale price? if it has been sold and settled then i suppose you have?
how long was the sale agreement for and which state?
was the price along way below your expectations? how much are their fees including advertising?
this is a warning to others.
regards.the agent was not a friend in my opinion and has acted unethically and probably worse!
off the plan has had a lot of bad press and no wonder. i hope things improve for you.
regards.hi stitched. was the contract subject to finance?
have you sought legal advice from a legal advisor NOT associated with the marketers/sellers?
is the deposit amount the only risk for you?
how much has the price dropped?
if you were to do it again i expect you would seek independent legal advice? using the sellers/agent advisor would for me be a conflict of interest.
good luck regards.
the outgoings that are disclosed look too high. limited market. would not touch with a barge pole. in my opinion.
regards.kameruka wrote:Real money in your pocket every month after expenses!
Detroit is at rock bottom, I should know I was just in the states looking for the best market to buy into.
Detroit is GOLD providing you master this one complex rule…………..Buy in the right area high rental demand and property which was $200,000 2 years ago you can get for under $40,000. Not so sure you could do it all yourself? well check out http://www.cashflowgold.com.au
There has never been a better time to generate real income like this let alone what the capital growth could do for you!
Thanks for reading and please ask any questions you wish.hi there had a look at your website. just curious why did you decide to link australian investors to usa properties?
we know most are selling, if they are selling very cheap. the economy is in big trouble. detroit in particular high unemployment.
lots of up to date information via forums from there as well as other sources.
good luck to you for giving it a go. some of the properties look in poor condition as do the surrondings. the maintenance costs must be horrendous.
who pays for the council rates/taxes that may be months in arrears?it would be difficult too i would imagine to get an understanding of residential tenancy rules and tax etc.
plus any issues around earning money etc off shore.
as i say good luck. it can interesting enough investing in this country let alone off shore.
regards.thanks helen now i understand what you mean. south west victoria is a nice part of the world some scenic areas and country towns with good bakeries!
good luck.hopeful i read your post on another forum. your plan to borrow $30000 to set up your home as the second rental sounds feasible, but how do you expect to service the loan, plus the arreas, plus the exsisting mortgages?
i dear say $30000 could be sourced but the interest rate might be unacceptable given your situation. i suppose you have considered friends/family?
how long have ANZ given before they will expect a resolution to this situation?
can you get another income stream like employment, to service the debt and not be so rent reliant?
difficult to predict holiday rental net return in the best of times.
sounds as if you have not had the property for long? what was the arrangement when you first bought, you mentioned a mortgage broker?i suppose in the beginning you had employment so it was a different situation?
regards.Kennyjaiz wrote:Pully, Do you mind sharing your scenario and the ATO judgement? (or just point us to your PR in the register). Thanks Matt, The ATO has strictly forbidden people in the same immediate family (including spouse and dependent kids) to own multiple PPORs even with different name on the property. For example, imagine a family of 5 owning 2 main residents and 3 holiday houses? So I don't accept ATO's argument "assets are in different names so they don't affect the other one". The only difference about that scenario with you, is that your wife got the PPOR before you guys got hitched. But this changed as soon as your marriage status legally changed. Unless there is any exemption that I'm not aware of. Your best option is to apply for a Private Ruling (see Dan42's link) Private rulings are binding to ATO, so if ATO has granted you permission to sell without incurring CGT, they cannot ask for it later down the track. Depending on how quickly you provide information to the ATO, it takes up to 28-60 days. Note, you cannot rely on other people's Private Rulings. Sorry to burst your bubble, but better safe than sorry Good luck Kennykenny it was quite complicated and i think as i said it is important to get a ruling on each individuals case because there are so many variables and interpretations.
even expert tax people can be stumped to give an definitive answer. in our case it took time to gather all the information and documents required by the ATO. it needs to be laid out clearly and with details and be supported by documentation.it took longer than 60 days after the ATO got the written stuff, much longer. various phone calls and about 6 months we had an answer, albeit more information required. it appeared case manager or whoever had been replaced or something so the process was longer.
our accountant/tax said afterwards that other clients had also tried to get answers etc about their situations and had long waits too. might just have been at that point in time?
it was a learning process in patience. certainly better to do that though and be sure. only ATO can really give an answer, where as tax accountants etc can give an educated opinion? the tax laws are so complicated and being added to as we speak.
regards.Dan42 wrote:I realise that is the heading on the link, but the information doesn't read that way.So if you and your spouse live in separate houses, you would be up for a portion of capital gains tax on each house, but if you live together, both houses are CGT free? That doesn't make sense to me.
The ATO info talks about nominating a house as your PPOR. You don't need to be living in the house for it to be your PPOR, so I think the heading is misleading.
But if you can get the ATO to put in writing that it is CGT free, then good luck to you! Here's the info re: Private Rulings
we had a similar issue. we got a private ruling. takes along time and many documents. better to get clarity. every case is different. regards.
Chelley wrote:Hi everyoneThanks for your various responses.
Firstly I think that most of thebad things that tend to happen in our society because the culprits know that the victims will 'rationalise' the decision to pursue them against time and economic factors and will generally decide its not worth their while. They know that even though they could get punished, its almost guaranteed they won't. And what does that lead to? A society where the bad people can do whatever the hell they want because the good people take the choice to stand back and let it go. So off they go and repeat the behaviour again and again, and raise kids who will do the same as they see their parent(s) get away with it. The problem will simply compound.
I accept that our management was lacking in some respects and we have learnt the lesson. However I still do not accept that PM add much value to the process, I simply cannot be convinced of this, and as I say I have dealt with 4 different agents in different parts of Perth over the past years and the experience is always mediocre to say the least. I cannot see how someone being paid a low salary to manage numerous properties of various strangers is going to have the time or personal interest to be proactively involved.
I will look into LL insurance. As I say I have been advised by a colleague who has the insurance that the only useful element is the liability, and that to make a successful claim for damages or lost rent is almost impossible. I'd be interested in anyone elses input to this?
hi chellew, we have our properties professionally managed. it is a cost but worth it when things go wrong. despite careful selection and a well located lovely property things can still happen. we had a tenant who was a professional pilot but he absconded and rent was owing and collected via the processes followed by our agent. we were not out of pocket. insurance helped too.
why he did what he did is a matter for him as are the consequences.
it is a business from our point of view and we need to protect our interests.
therefore we do as we do. the fees are deductible.some insurance companies only deal with landlords who are represented by an agent. there are landlord assoc. in some states that may also advise you. i think some have access to relevant data bases too.
it is unfortunate you have had this experience. some tenants regardless of socioeconomic status etc can be less than clean in their living habits and care of property. proper inspections and photos are essential.
good luck.
hi chelley sorry to hear about this mess.
tell me are you self managing? i recognise this can happen to anyone even if professionally managed.do you have landlord insurance? hopefully yes and it will assist you.
its a pity these types of tenants cannot be named here but i understand why that is not possible.
there is a database that agents can access but this will not help in your situation.was there any hint this tenancy was going to end like this?
regards
helen what do you mean by a challenging rental?
what sort of solution do mean?
Regards
i would like to agree with the posts of richard and micheal.
its great to use a lot of sources for information and guidance. i do not think it is necessary to spend a lot of money on seminars run by motivational speakers. some seem to make more money by running these things than actually being actively involved in investing in property and related matters.
if i attend any i always look very closely at the written material in the cool light of day, well after the hype. always seek independent professional advice before acting and never sign anything until you have. if there is pressure to do so run a mile.
do lots of research re the individuals before handing over your money. then you will have more for investing.
i think it is great for people to get ahead, and hate to see anyone being taken advantage of. it has happened to many ,even those who are experienced, so we must all take care.
just my opinion. also if it sounds too good to be true, it usually is just that.
i wonder why you have not rented it for nearly 6 months?
have you had financial advice re your situation, not just in regards to tax?
for example holding property as an investment may have impact on centerlink as well. you mentioned you have 2 small children.
i would not sell at the moment. i would rent it and direct the income towards your current PPOR to reduce that debt.i would review the situation in a couple of years but monitor the cashflow closely.
the yields from houses in the northen suburbs are not too bad but the capital gains are a bit slower than some areas.buying/selling does chew up a lot of money. you do have a lot of debt however, at present. is your job secure? can you manage the debt and sleep at night?
i am not privvy to your personal situation so this is just a personal opinion.
what were your plans prior to purchasing the 2nd property as a PPOR?what did you intend to do with the 1st PPOR, and when did you purchase it?
good luck. just a few other things get it professionally managed and have landlord insurance. if you chose to keep it as an investment.
it is great to be able to discuss aspects of property investing. i think it is a good opportunity for people to do that on this forum. we are all different but opinions can be expressed.
we are not all going to agree but that is ok too. if rent to buy works for you good but there is no harm in exploring and discussing points of view. in the uk this concept has had mixed outcomes, not familiar with us.
another thing to consider is that the idea of everyone having the opportunity to buy/own their home is flawed.
but that is another story.i think i would be more comfortable with the concept if it was mandatory for consumers to get independent legal advice prior to entering into a contract to rent to buy, where all aspects are clearly explained and all options considered. probably also financial counselling would also assist but i do not think that will happen.
sadly people do not get good advice before acting and potentially the outcome is not good.
for investers it is business/cashflow/capital gain/loss. for consumers it is often the biggest expense of their lives.
not to be taken lightly.have not seen the hand made signs outside homes for awhile advertising purchasing for a value over market or offering a rental value that is laughable. usually only a mobile phone number is on the sign. i am sometimes tempted to write on the sign a more realistic value but think that would be inappropriate.
if people are finding renting/buying expensive how can they afford these inflated prices? and would there?
it seems it is the idea that by doing so they will gain equity and own the property?
but from what some have said on here that is a false belief because it is a residential tenancy agreement?too clever for me. i will stick to what i know. good luck and regards.
i amfthe
thanks for that info terry.
sounds potentially messy and not something i would want to be a party too.
some of the stories sound to good to be true with all due respect to those who like this form of property investing.
i think i prefer the simple traditional method.
it certainly sounds there is more to gain for the person selling the property than for the renter/purchaser?it reminds me a little of the old days of companies like radio rentals where the deal sounds good but in the long term the renter/buyer paid a huge amount fot the object, albeit a depreciating one in that example.
from an ethical perspective it does seem a bit like taking unfair advantage of people who are less fortunate and who maybe also vulnerable for one reason or another.
just my point of view, each to his own.
good luck to all.
inthis is a messy situation as the others have said. i doubt it will be cheap to reverse your position in the short term.
centrelink can be helpful in terms of speaking/meeting with staff called FIS, these are financial information people in each office. it is a free service. they do not give advice but help you to look at all options in your situation.
without all your detalis and your fathers it is difficult to comment but on the surface there will certainly be costs as mentioned by others.
your father wants to move to a retirement village/home. that in its self can be a can of worms in terms of rules and regulations.could you sell the unit to finance the retirement place?
it does sound a little as if you are over committed at present? but time may sort that out.
lesson to all to get advice before setting up to look at all options/possibilties.good luck.
i am not from victoria but have been to frankston area. the positives are close to public transport/trains.
not far from the beach areas, i particularly like mordiallac for example.depends who you are interested in housing/demographics.
lots of famililies with shopping and schools near by.pockets of many areas have negative aspects of course. tenants can be difficult anywhere. it would be unwise to generalise in my opinion.
are you after capital growth or yield, or both?not always possible to have both of course. if a property is well managed and landlord insurance is in place, things should go well.
good luck.strange story. certainly time wasting. probably also unprofessional.
if business cannnot be done promptly without this carry on i think i would move on.
plenty of other properties out there.wonder why such a muddle?
regardsjust a few questions.
what happens to the person renting a rent to buy, if the vendor defaults on the loan?
a renter is protected under residential tenancy guidelines, what protection/rights can the renter claim/access under these arrangements?
who pays council rates etc?
what price does the renter pay when they eventually decide to buy?good luck to those it works for. i have limited knowledge of these arrangements but occasionally see handmade type signs outside properties with a value to buy and or rent which seem way over market value.
just an obervation. regards
