Forum Replies Created
Hi there
it can depend upon the state your in and what information you have to hand.
Often when we make an offer on a contract we specify all the terms and conditions that we want to have in the contract.
Often the agent will come back to us and say – it should be an offer on an actual contract – so we then go ahead and prepare a contract which we have signed up which has the terms and conditions we want – there will be gaps – as we won't have done all the relevant searches – but there is enough information about the important aspects so the Vendor can go ahead and sign up.
thanksHI there
not sure if you are hinting that you should take over an existing structure for the business – if you are – the answer is you should set up your own structure for your business which protects your assets, which can be via a discretionary trust with a corporate trustee.The main thing is to get informed advice as the trust should hold assets that need to be protected and your business should be separated from those assets. Do you have an accountant who is assisting you with consideration of the business accounts? – if so perhaps you should raise the issue of structure with them now – as you need to nominate the correct party to be the buyer of the business.
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Hi there
our first IP was also a unit – for similar reasons as mentioned above – it was what we could afford in the area we wanted to invest in (Maroochydore, Sunshine Coat) – our most recent purchases have also been units – though there have been some houses in between
thanksYes a solicitor can do this for you – and it is a good idea to document what is happening so there is no problems further down the track with other family members.
I note both my parents and my husband's parents helped us with lower interest rate loans when we were first getting into property. But we did document the loan agreements and there were mortgages placed on title to secure their interest and put it on a commercial footing. We have since paid out those loans – and as you say – the only loser was the bank.
thanksHI there Col
Firstly there is no right and wrong answer to this question – it is a personal preference.
In our situation – we tended to invest in our own backyard. But as my husband was in the Airforce, our backyard changed every couple of years. We would initially rent or live in a married quarter, become familiar with the town and then invest if we thought appropriate – or could from a financial point of view.
The properties we had that were not in our own backyard were situated near family members – so that when we travelled to visit family – we could claim some of our costs if we also did an inspection of the property and undertook some maintenance at the time. It also meant they could keep an eye on the property for us if there was a problem.
One issue about having all your properties in the one area is – what happens if there is a natural disaster? In Cairns it might be a cyclone. In our case – we lost 2 properties in the Canberra bushfire because they were in the same suburb – which set us back a couple of years.
As you grow older – the travel and maintenance may also be an issue. I do think you have to be prepared to go visit your properties for inspections to ensure the property managers are doing their job – so that may also impact on where you choose to invest.
Anyway – property is very forgiving – provided you get the fundamentals right!
thanksHI there
its called arson and its against the law – and the insurance company would be entitled to deny liability in the circumstances.
thanksHi there
I happen to know another property investor who used to rent his property – to what turned out to be a brothel – they actually were the best tenants he ever had – always paid the rent on time and kept the property immaculate
thanksHi Marc
you are quite right – any contract is between the builder and subcontractor – and the builder has acknowledged he is obliged to make the payment.
The only reason we are involved at all is because we obtained the initial quotes and submitted the one we wanted to the builder – who then contacted the subcontractor.
Its just it absolutely floored me that the builder can have the benefit of those funds for 2 years and not do the right thing by the subcontractor!
thanksHI there
as we live in Toowoomba we can give you a heads up on particular areas if you would like to contact me.
Just be aware though – just at the moment Toowoomba has a vacancy rate of about 4% – and there isn't the same rental pressures for tenants.
thanksHi there
There is an exemption from stamp duty where a transfer of real estate is between de facto partners or former de facto partners where the breakdown of the relationship is the reason for the transfer. De facto partners are also eligible as "first home buyers" for a refund or exemption of stamp duty on the transfer of real estate (Duties Act). There are definately principal home exemptions for married parties.If you need particular advice, talk to your solicitor, but you may be able to limit the stamp duty payable given the consideration of "love" for the transfers occurring. My understanding is that stamp duty on IP's will be at ad valorem rates.
thanksHi there Heylyeb
I think Marc is right – you will note from the above websites that a road becomes the property of the Crown once payment to the owner is made – my understanding is the developer is trying to recover compensation from your parents with respect to property that will belong to the Crown. Bit of a scam don't you think!
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Hi there
I think you will have problems if there is nothing in writing – as your contract will normally say something like – any representations which form part of this contract have to be reduced to writing and agreed between the parties…
You can still complain though – cause sometimes people will still negotiate with you to keep you happy.
thanksHi there
I think you are going to have to have someone (your solicitor) review your contract – it sounds like you went ahead based upon a 'representation' as to timing that perhaps became part of your contract? – you need to review what representations have been referred to and agreed in writing – as representations can amount to damages further down the track
my experience with builders is that they invariably run late – and the contract is drafted in such a way – provided they give appropriate notice under the contract – that they can increase their costs
just remember – if all else fails – you can recover your costs by claiming the building costs as depreciation of your IP further down the track (unlike an owner/occupier)
thankshttp://www.dpi.wa.gov.au/crownland/1784.asp
Hi there a further link for review – please note the point …
The Department’s brochure “Land Acquisitions” outlines procedures for acquisition of privately owned land for road purposes, with the local government paying compensation and indemnifying the Department against these costs.
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http://www.dpi.wa.gov.au/crownland/1793.asp
Hi there
I found the above link which might be of use to review – you will need to speak to the solicitor who is familiar with planning requirements.
I would have thought that if a development of a subdivision has been permitted by council – your parents would have had previous notice of the proposed development and any costs they would be expected to incur – and would have had an opportunity to object. If they haven't then that is another issue for consideration by the solicitor.
thanksHi there Misty
a solicitor's trust account doesn't normally accrue interest – and any interest is usually directed to an account held by the Law Society or Institute and used to pay members of the general public who have been wronged in some way by a solicitor.It is one of the reasons people will often have a deposit in a separate interest bearing account – so the relevant parties to the transaction do benefit from the interest. Also another reason for having a deposit bond.
Brookelea – it was good to see you resolved those issues you had and here's hoping the rest of the transaction goes smoothly for you.
Hi again Brookelea
Can I suggest you speak with your new solicitor urgently
A Solicitor has to act on instructions – he can't tell you what to do –
if he is not following instructions – his conduct may be considered unprofessional conduct which can give rise to a claim for damages.If you want any help with respect to legal costs – perhaps you may like to contact me.
I note that I am both a solicitor in QLD and legal costs consultant in QLD and NSW and could probably refer you to a consultant in Victoria.
thanks
Robyn Davis
Legal Costs Consultant
DG Thompson & Co (with offices in QLD, NSW and ACT)Hi there
you need to comply with the requirements for your state – there are usually appropriate forms to issue which give a reasonable amount of notice to the tenant of an inspection
thankshttps://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4320333
Hi Terry
I believe there have been changes to allow 2 years to sort out the estate – see the comments in the above thread.
Knowing how time consuming it can be to sort out estates – the longer time frame is a good idea.
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Hi there Daryl
It looks as if where you have your property may affect your choice.
We don't have the same problems as crashy with a property cracking due to drought as our property is at Maroochydore on the Sunshine Coast and there are no water difficulties there.I would think though if your property is already subject to movement and cracking – even the fibro will crack – so up to you.
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