Forum Replies Created
The deposit is what you negotiate – if you can get them to agree to 5% or less, great.
Releasing the deposit to the vendor – the usual 'what if' scenario: what if the vendor delays settlement, blows your deposit, walks from the deal, dies……… where is your money? Goooone.
The biggest problem with Sydney is the entry price. Pay SD on purchase, REA on exit, holding costs, CGT (discounted if held for over a year) etc, you would need to be looking at making a gross profit of $150k to walk away with $15k. IMO not worth it. Look further afield.
Something that no-one has considered in the equation – risk, ie security of tenure. Australia has one of the highest/most secure forms of tenure which is guaranteed by the Crown (under the Real Property Act in each state).
Can that be said of any of the other countries?
If it is anything like the pack in NSW then it covers the lot – 2 copies of the lease, renters guide etc.
jmboy wrote:When I do sell I will sell privately, by negotiation. It may take longer but I will hopefully get some more money back with no agent fees.Taking a step back, I'd say BIG Mistake. Why, you're depressed, it will show in your dealings with buyers. They will see that it is a distressed sale and you will be mince meat. Use an agent, distance yourself from the deal and don't get done over.
You'd be surprised that even paying an agent 2.5-3% of the sale price ie less than $20k, you should be able to get back on track with more peace of mind.
You might come a little closer in price if you look to areas like Green Valley (near Hoxton Park)
You will need to instruct your solicitor to issue a notice to complete however this cannot be done until 14 days after the due date of settlement.
Jaffasoft wrote:Hi,
If there is a License to Occupy can the property be then rented by the purchaser similar to the above circumstances but i seek a tenant to put in the property. This is Victoria?this would be totally dependent upon what is in the occupancy licence – in most instances the occupant will have restrictions with respect of parting with, subletting or assigning of their rights to a third party, to do so may be a breach of the essential clauses of the licence and termination of the licence would be a valid remedy.
Is the rent net or gross? Is GST incl/excl?
Strata shops are always a concern as there is usually no strong central management over the centre thus planning, tenancy mix etc are poorly implemented resulting in high vacancies, difficulty in financing etc.
Grasshopper, there are several packages out there so yes it can be confusing.
Depending upon what you want to get out of it (& your own skill level), many people on the forums use an excel spreadsheet, who knows there may even be some available on the web if you google the right words.
I have used propertypro & Posh both available from the popular retail software suppliers (publisher is mannacom). I found propertypro to be better than Posh.
Currently, I use rentmaster. This is much more powerful than the other two packages. It comes in various levels of property numbers ie small investors thru to agent. http://www.rentmaster.co.nz
How about, hmmm sell the house & buy 3-4 commercial units inside a trust, pay rent for somewhere you'd like to live (or sale with leaseback)?
A couple of other changes that will also come through include: Accountants will no longer be able to set up smsf which they can do at the moment (they cannot give advice about what shares/assets to buy unless they are licensed to advise) and it does not look like that getting financial advice will be tax deductible, the last one will really hurt if people planning their finances must pay for advice and not be able to offset the cost of achieving the returns.
What does the area dictate you do? That is, are the surrounding houses single or two storey when they have been extended?
If the house is to be a rental proposition, is 3 bed/2 bth or 4 bed/2 bath going to have a better rental?
A valuation is a mix of both science (research of comparable sales) and some human nature.
It must be scientific as it is based on the valuer's research which they must be able to prove when required in a court so that they must properly review each subject property and how it compares to the property which they are to value.
The only thing left to chance is the market sentiment which they are to disregard esp if there is a rising/overheated market. You cannot estimate the degree of competition that will exist at an auction.
Before you start you will need to get your certificate of registration – pretty quick and painless as there are plenty of providers out there.
As for pay structures it varies greatly depending upon where you come in – at the bottom, you will probably get a pretty pathetic base wage with maybe some incentive alternatively they may pay a training wage with you receiving the commissions (they often run a ledger of sales commissions against 'wages' drawn and if you aren't much of a sales person you can rack up a serious debt quite quickly.
As for working 6 days per week, that depends on the agency. Many take a day off during the week.
The previous FI laws were much more restrictive however no-one raised even a whimper when these were changed. We did have a situation about 2 decades ago which led to a tightening of FI rules (I can't lay my hands on the old rules at present) but now they are an absolute joke.
Like any investment, location is a key factor in the amount of risk involved – capital cities/suburban industrial/business zones etc are givens. Unlike residential other factors come into play (like the economy/bank sentiment etc) however you will need to be more financially independent to support long-term vacancies ie lower gearing – just look at any of the stable REITs 40-50% gearing only to support a greater degree of vacancies over any given period.
I know of several investors who do not have any residential in their portfolios.
Before approaching your neighbour you should do a bit of research – firstly, find out what the LEP and council requirements are ie how much land you will require and what you will be able to put on the site (retail/commercial/mixed use), it will be a costly exercise if you buy up next door only to find out that you will need 2 or 3 more properties after that one to make up a development site. Once you know what you can build and how big, do your numbers to determine what you can pay for the site.
Then ascertain who owns the site (make sure you are dealing with the property owner/s not the tenant) – a title search will give you this information (many online service providers in most states).
There are subsidies available (and it is cheaper to build them in at the original construction). Speak with a QS as to what additional depreciation benefits/tax incentives may be available.
Simply fax in a retraction of the offer or drop it off to the agency today.
