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thanks guys.
It seems as though the following applies in NSW when the tenancy agreement has expired:
60 days if no reason is given
30 days if the property is to be sold
14 days if the tenant breaks original contract (late payment, damage to propery etc)Cheers
Cheers, Ian
Hi Richard,
$420k loan, of which $400k is a 3 year fixed. $20k is b.variable.
Loan thru AMP, and it was LMI and not a fee.Interest rate is currently far too good to refinance (7.75). I thought by creating a buffer (equity) of around $40k, which would reduce my LVR to around 90%, might put me into a lower risk category, and hence no need for all the LMI fee.
The initial reason for my thread was to see whether it was worth fast tracking the reno's (next 2 months) so the valuation was completed within the first year.
Thanks for your help.
Hi Neil,
The company is Compass Finance. I met the director who has a large number of properties utilising the buy/renovate/hold strategy. A strategy which I have always been keen on adopting. In the short space of time that I have been dealing with them, she has come up with a lot of creative ideas on how best for me to move forward with my investments. very happy thus far.
Good luck.
Ian
thanks for the recommendations………since I posted on 8th Oct, I have been introduced to a company who seem to be well and truly on the ball.
Thanks, Ian
Just to paint a clearer picture in regards to my situation……
Myself, wife and 2 children share a split level property with the in-laws. Our rent is calculated at 30% of the mortgage, as this is the total area we occupy.When we move out, we will get 30% of the rise in price. So our rent at the moment is very reasonable, and there is no imminent reason to move out.
Where we live, on the Northern beaches in Sydney, is quite expensive if we were to buy a place that we could live in. Houses start at around $650k, and would need pretty much demolishing, or 3-bed units from $500k.
We have a deposit of $15k saved. I have available $250 extra income each week which can go towards an investment. If my calculations serve me correct, I am able to afford to buy an investment (around $300k), rent it out, and be able to cover it with my disposable income.
The problem is, to get a first home owners grant, I have to live in the property for 6 months.
a: I can only afford a 1 bedroom unit, which isn't big enough to fit the family in.
b: I cannot afford to pay rent aswell as mortgage payments for that 6 month period when the property isn't being rented out.I apreciate that looking at the fhog is a very micro point of view, and that looking at the bigger picture is more important. That I shouldn't necessarily base every decision on me getting the fhog.
I would be happy to forgo the fhog, and go for a "investment" loan, but I believe that currently I will need a minimum 20% deposit ($60k), which isn't going to happen for 5 years!
I am very keen to invest in a specific suburb so I can renovate to add value, plus the outlook is very good. Prices start from $260k upwards. The intention os to keep hold of the unit for 10 years plus.
If any of you have additional thoughts on this info, then I welcome them.
Hi,
Thanks for the posts…….
I have called the ATo to get 'official' clarification on the matter.
In some cases, the ATO are happy to look at the contract, and use the date from when you have 'eclusive right to the propertry" and not the settlement date. But this is only when settlement terms are spread over a significant period of time i.e 10 years.
In my case, and as quite rightly posted prior, it is from when settlement occurs. Only at this point is the name on the title allowed to be changed at the LTI (land title ….). The 6 month period to be eligible for the fhog can only start from this date.
Thanks for your replies, some kind, some to the point, but all good.
So even though the contract has been signed, the propoerty isn't legally mine yet? I was led to believe that, with the exception of payment, the property was legally mine. I could then use this period as being my ppr
I imagine that I am able to alter the internals of the unit with no real issues. It is the relocating of the pipes, in particular the waste pipe that I can foresee problems.
The real estate agent (taken with a pinch of salt) said that a neighbour had moved the kitchen with no problems.
The property has been on the market for over a year, so can either knock down the price, or get extended settlement terms. But without creating that second bedroom, there are far better 1 bed units locally to persue.
I guess the next step is to
a: knock on a few doors, and speak to the bc
b; get an approx quote from a plumber, as the costs may inhibit such a move, although I don't believe so.Ian
Hey Sarah,
I’m in an identical position to yourself. 8K savings, 35K PL and earn 75K. saving approx $350 per week.
I sought advice from various people as to how to get onto the property ladder asap.
It seems that having a 35k PL, and 35k in savings was a stronger position to be in than paying all of your PL off before saving a deposit. Both scenarios are $0 equity!
I fully understand that the interest on a PL is a lot higher than that of a savings a/c, so is costing more. But I believe that you would be able to buy a property sooner this way.
You’ve done the right thing by posting in the forum…there’s been some great posts which I’m sure will have helped.
Good luck with the savings………
