Forum Replies Created
I have my own home and use the equity to invest as well. With kids I prefer it this way, even though our investing will take longer than if we rented and investing. IT’s a lifestyle choice we made.
Jetdollars, rather than sell a couple of IP’s, can you not move into one of them?
Regards
PKWe have “early Possession” written into the contract, however, during the time between taking possession and settlement we do all our plaaning, getting quotes etc and don’t do much actually work on the place in case something happens where it falls through.
You should always take insurance out immediately when contracts signed regardless of whether you take early possession or not as you have an interest in the property from that point in time. My sister had a case where damage happened to the manhole between her viewing the place and settlement occurring, she didn’t have insurance and the other owners weren’t insured, they said that her termite inspector casued the dmamage, he says he didn’t. Thankfully it wasn’t an expensive repair but if it had of been she would have been out of pocket. If she’d had insurance she could have claimed it there and they could have followe dup if they wished. So, always get insurance as soon as the offer and acceptance contract is signed.
I believe the vendor would need to lodge the building application in their name as the home is still in their name until settlement.
If we do any work prior to settlement it’s usally things like neaten gardens etc that doesn’t cost much except our time.
Good Luck
PKYou might want to consider changing the securities on your properties when they have enough equity in themselves to cover the LVR that the bank requires, there’s usually a small fee for doing so but then as time goes by you know that you don’t have to worry about things being tied up together if/when you decide to sell.
Regards
JudyThe banks don’t seem to like taking securities off but I’ve found if I’ve got an accurate valuation and threaten to go elsewhere if they don’t then they comply.
Aside from doing the figures, I look for the “best shell”. Cosmetic is easier to fix than structural so the best shell usually reduces costs. All depends on the final figures though.
PK
Yes, REdwing is right when he says $66 is usual over here for a property condiditon report. Let us know how you go Redwing.
I’m currenlty disputing an electricity bill with my PM, for starters I’d like to know why I’ve been charged for one. The tnenant left and the property was vacant for 10 weeks and then on my statement there’s an electricity invoice for $110. Firstly I’ve asked why was an accoutn opened in my name I didn’t give any authorisation. Seconldy, how was $110 of power used in an empty unit! Still waiting for a reply…
PK
Is it a brick veneer or fibro house? Does it have a subfloor. Once a house is brick veneer or fibro it will nearly always be lsited as moderate to severe risk as they cannot see what is in the walls.
Were they able to get under the floor? If so they should be able to see if there is termite damage in stumps that lead up to a wall, if this is the case I’d be hesitant because if it leads up towards a wall and you can’t see in the wall then you don’t know what you’re about to get.
However, if damage isn’t found to any stumps leading to a wall then I’d probably buy it as I’d consider the risk to be less.
If they weren’t able to check under the floor ie: no trapdoors then this is something you can ask the vendors permission to do (at your cost). If they say no, then you should be able to walk away as you weren’t able to do a termite inspection to your satisfaction, if they say yes, then you can get that little bit better knowledge of what is occurring.
I’d still ask for the termite damamge to be fixed, assuming that was how your clause in the contract was written up.
I’d still consider a house with termite damamge, depending where and how much and if the vendor either fixes or reduces the price sufficiently. I’d want to be happy that the report adequately describes the damage and cost to rectify. If I was doubtful then I would consider letting it go. Do remember though, that sometimes the biggest profits are made on houses noone else wants (how many others will walk away at the word “termite”), but reduce your risks by ensuring good checks as done. If this means getting trapdoors cut, then do it, if it means getting another inspection done as brahms suggested, then do that. Just make sure you have as much infomration as possible before deciding, don’t be rushed.
Good Luck
PKlandt64,
I’m very surprised that your rents weren’t counted as income. Terry is right in that it depends on what paymetns you were claiming, but I am still surprised.
When we did the form we included all income incluidng rents, however, they also took into account expenses eg. the interest, so the added income wasn’t much anyway. But the forms we completed definitely asked for all income including rents.
Thankfully, our rents make us over thelimits now so have lost all payments and I can tell you, it’s the best thing that ever happened, the freedom to not have to report every single change in finances etc.
Go for freedom, it’s much easier!
PK
Ok, just htinking outside the box a bit here. Could you not refinance the loan to 95%LVR, with the $20,000 pay the mortgage insurance that comes with having less than 80%LVR.
That means mum is released as guarantor.
Then, you’d still have the remaining funds left that you could use as a deposit on something else.
Higher risk, but then it’s your risk and not your mum’s.
I wouldn’t normally suggest 95%LVR’s but it’s just another option that you could consider, depending upon your own risk levels etc.
Good luck.
PKI feel that scratches show up more in full gloss.
Well normally I’d go for the next IP, but if I had a guarantor I’d try and release then ASAP, so as to reduce their risk (plus if you do the right thing and you need her help again then you would most likely get it again).
However, this is all based on emotion and nothing else, would be interesting to see what others say.
Regards
PKWell Done, you’ve done well, be proud.
There’s some great advsie here and if you don’t speak up your parents may not know how you feel. In fact in the world we live in today they may be afraid of putting too much emphasis on your grades in case it’s puts too much pressure on you.
Let them know how you feel and give them an opportunity to let you know where they are coming from too, opening the doors to communication stops many potential problems early and creates better harmony for everyone concerned.
Good Luck
PKIt means the bank is tying you to them! Fair enough to use 2 properties as security for one, but when they want to tie up your whole portfolio then it’s simply making it harder for you to go elsewhere if you wish to. Then to untie each property ususlaly costs a fee, my current bank charges $150 to change securities, if you end with 5 or 6 cross collaterised then your looking at $900 to uncross them.
My advice would be, only offer the necessary security and nothing else.
Regards
PKIn Wa stamp duty is based ont he value of the house and whetheryou’re a first home buyer, not how much you earn…
Over here in Wa the going rate seems to be 9.35% of rent (that includes the GST) plus other things like, postage, petties, inspection reports etc are all additional charges.
All mine that are managed by PM’s are at this rate.
Regards
PKThanks for that, it was an interesting point.
See the thread on “repossessed houses” in this same section.
Turbo,
Can’t hlep with t he plastering, but the roof you mentioned. Does it really need replacing or does it just look bad from the ground? We had one that had rust spots but when we (well, hubby) investigated, they could be brushed off wiht a wirebrush, there were no holes, os we then primed with an antirust-corrosion primer and then painted over with roof paint. Solver paints have everything you need. (Cost us approx $400 to repaint whole roof, that was one coat or primer and two coats of the roof paint. We used a small spray gun and it came up a treat.
From the ground it looks like we replaced the roof.
Good Luck
PKMandy,
Go to “Online Shopping”, it’s on the menu on the left hand side.
PK
Read as many as possible!I agree wholeheartedly with Mortgage Hunter! As a start I’d read the following 3 and then expand from there:
1) 0-130 properties by Steve MacKnight
2) Creating Wealth through Residential Properties by Jan Somers
3) How you could build a $10 million proerty portfolio in 10 years by Peter Spann.Everyboldies lifestyle, risk profile etc is different so different statagies work best for different people. I’d start with these ones and then read anything and everything else you can get your hands on.
Regards
PK1. Don’t allow others to dampen your success (some are just jealous or fearful of what they don’t understand) and will advise you not to go ahead.
2. Do your due diligence, believe in your findings and follow through.
3. Replicate – when you find a deal that works and is still valid in the current market then replicate it.
