Forum Replies Created
If any work has been done on it since the initial construction (ie value added), that too can be depreciated. Get a QS.
AFAIK agents don't get kick backs for arranging quotes etc however they have to watch out that the works that they undertake does not require them to have a building licence eg if you get them to arrange repainting, carpet, kitchen replacement etc where it exceeds the limit set by the dept of fair trading.
In the commercial field, where the agent is required to take on the role of facilities manager, then they get paid separately for this work ie for arranging ac maintenance, essential services certification, cleaning etc.
Where an agent is receiving kickbacks they can be prosecuted under the crimes act for receiving 'secret commissions' ie remuneration for arranging works paid for by the suppier not the owner.
Objections, to bear any weight, must be properly drafted and address specific non-conformities with the planning instruments. Just because it looks gross does not mean the objection will see the light of day.
If you are keen, negotiate a lower price based on the probability that you will need to put your hand in your pocket to fund the repair work. If not, walk away. (Remember that it may still be worth persuing now as there has been a bit of a correction in builders prices since 2007).
Property Council of Australia – it will cost you for its annual report.
Here's a clikky to one QS website: Clikky
In essence they say:
The role of the Quantity Surveyor
Quantity Surveyors are recognised under the Australian Tax Office Ruling No. 97/25 as appropriately qualified professionals for the purposes of assessing the construction value of rental properties.
Specifically TR 97/25 holds that: “Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate”
There are links to self assessment provisions to keep down your costs (but if you are getting a tax deduction for the qs fees who is going to quibble over an extra couple of hundred for travel?)
Yes, you can have your accountant do the job but they will use the straight line or % basis but will not individually assess items which get accelarated depreciation eg stove, air-cond etc. For this they will charge you annually as opposed to getting a schedule from the QS which covers the next 20 years ie $40 per year of their fee.
I'd be severely checking your figures or contracting the person who gave you the quote.
Eg, the real estate agent would not get out of bed to sell 12 blocks of land for a commission of $3,500 (it may be $3.5k per site but even still that is light on). The Construction Contract Supervision $ 950 – is this the daily cost of supervision?
etc
1% rule sounds more like the rule that I'd follow 1% of the time
As per Duckster above but also go to the WA Dept of Fair Trading (or whoever registers real estate agents). Contact the PM's licensee (often the PM only works for the real estate agency and is not a licensee or director of the company).
Stir as much sh!t as you can within the company to reveal their incompetence.
Thanks Tim, I did one nearby. Docs were completed within a week with the CC completed in double quick time.
I know that there isn't much work in doing the calcs & preparing the drawing (I have done these previously but no longer have access to the rainfall data).
It was cheap enough, painless and has got me over the line.
2.5% per annum, need to estimate construction/replacement cost of house and age of property.
Generally TV and radio towers are high powered transmitters vs phone towers being low powered devices. Recent studies have shown no discernable links between mobile phone useage & brain cancers. http://www.emfexplained.info/?ID=25659
The price effect of any existing phone or tv tower is already reflected in the price of property nearby. Likewise studies have not found any discernable decrease in prices where towers are located (you'll need to google this one yourself, it was a study in NZ).
A builder can only provide you with a break up of the cost, whether it be the replacement cost if the work was done today or the initial /replacement cost years back when the work was done.
I would recommend using a QS.
Personally, I would be seeking that the contract sum be changed for the following reasons:
Price paid reflects your cost base, any money spent on repairs is reflected in the reduced cost base for cgt, stamp duty would be reduced (negligibly), you do not have to offset the 'income' against the expense of the repairs (the repairs may cost you less than the compensation received). Conversely, it may affect the bank's valuation and the amount they will allow you to borrow on the property.See a different lawyer to the one that you used for the purchase. Not only can they advise if compensation is payable by the council (probably not) but they could also review whether or not your conveyancer was negligent in the purchase by not having undertaken all reasonable searches etc.
Ok, you have said the proposed easement is 3 m wide but only affecting 2 m of your property, does that mean that your neighbour is also affected? How does council expect to service the easement if you have built over the pipe? Who will make good to your building if you have built over the pipe without meeting the requirements of building over a pipeline? Did the pipe show up in the builder's DBYD inquiries?
There are many commercial real estate agents in the phone book, they specialise in properties which are for commercial or retail or industrial investors. That is, avoid your local rea and go to the legit commercial property brokers.
jsoohoo wrote:Howdy All,I have a pressing matter about an offer I submitted. I am a first home buyer and buying sight unseen.
Not being too critical here Michael, but….. you are a first home buyer and you are probably making the biggest investment in your life yet you are prepared to buy 'sight unseen'. How do you know you are getting value for money? Do you know the deal is legit? Are you being screuued?
jsoohoo wrote:Recently this week I have put in an offer for a property and I was supposed to get an answer from the owner today. However because they are apparently (according to the RE agents) are settling down overseas at this moment, it is hard to get in contact with them.It is not uncommon for O/S vendors to be difficult to get hold of however the agent has to use their best endeavours.
jsoohoo wrote:Today instead of getting a confirmation about the offer, I received an email from the agent informing me that the first buyer of the property has come back again after a contract falling through with problems due to his finances. Now that his finances are approved and that he has done a Building & Pest the RE agent has submitted his offer in as well…… Now its a waiting game until the owner decides…Did the first offer lapse (yours has only been received, not accepted)? Was that communicated to the other buyer? Was the other buyer's offer on better terms than your offer? Obviously, you are dealing with a reputable REA as they do not have the cahoonas to call you and advise that the other buyer is back in the game and more advanced in their due diligence.
jsoohoo wrote:Any advice on how to deal with such situation? I do like the property but I'm not going to blow my budget.Walk away, there are plenty of properties on the market. This is your first (and probably biggest/most important investment in your life) you do not need to be put under pressure to pay more than you can afford or want to pay let alone purchase sight unseen. Why haven't you inspected the property? This is not a packet of chips that you have bought 50 times before, it is a house. Buy with haste & regret in leisure.
Engage a QS, they're cheap and will give you a more effective depreciation schedule.
Contact an insurance broker rather than a retail insurance agency ie don't go straight to the NRMA as they do not have access to the same range of products suitable for commercial premises.
The insurance broker can discuss your requirements and will then advise you what you should have eg business package
Research – that is check (and read for yourself) the LEP, talk to the town planner at council who can tell you whether it could be approved for strata subdivision or whether it is non-complying development, get an estimate from a builder as to what all the costs of conversion to meet BCA requirements would be etc.
