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One thing you may need to consider is whether you must advise your lender (or seek mortgagee consent) with regards to leasing the property as you are parting with the possession of the house – if you don't you may be in breach and this may have serious consequences even if you don't skip a repayment.
Have you tried Stoddarts or any other commercial kitchen supplier?
Yes, I am Sydney based. Gross yield varies widely however I have seen some recent deals done on strong yields around 4.5% (not in the areas that I mentioned – you'd have to double the price tag). Prices are at the top end of FHBG etc but competition is quite strong right up to the $1.2-$1.4 m mark
At sub-$200k you may be hard pushed to find anything in reasonable travel distance to town however you may find something around Punchbowl/Lakemba/Wiley Park or Harris Park (Parramatta). Possibly you may find something around Guildford/Auburn but unlikely, also Blacktown/Seven Hills/Toongabbie. Further out your choice opens up with areas around Penrith/Kingswood. All of these areas are serviced by either the south-western or western train lines.
This has been answered several times so check some of the previous posts but in a nutshell, if the primary purpose of the loan (assuming you have now got a separate line of credit or another mortgage on your PPOR) was for investment purposes (ie deposit & costs for an IP), then in all likelihood the interest is deductible. If on the otherhand you used this to finance your holiday to Barcelona then it wouldn't be deductible.
Andrew, you'll also need to factor in stamp duty on purchase (if any), legals on purchase over and above Duckster's inclusions.
They're the experts, they provided a quote based upon an inspection. Unless the demolisher had provided an exclusion eg asbestos, detailed the extent of the work (eg demolition of house, footings, grub out services etc) or quoted the weight that they had allowed for, </////////] them! The Dept of Fair Trading will come down on your side. Security of payment legislation (NSW) does not apply to contracts between Home Owners & Contractors only between head contractor & subbies.
Yields generally have returned to around their long term average ranges ie a better reflection of the risk however there have been some noteable sales which have been out of line – Victorian Bulky Goods/Homemakers centre sold by a LPT to a private buyer on >8% yield and at the other end a shop sold on 1.5% yield in the inner city (Melb). One possible explaination is that the site had a major reversionary rental or major upside on the rent with an impending fixed rent review or alternatively the site had major redevelopment potential.
Analysis is always the key to these deals.
Add to that, architectural fees if you go that way.
If the properties are to be IPs, then go with gut feel as to a medium density builder who can provide a turnkey package ie design & construct. You won't necessarily get a better return on a more expensive building just because it cost you more to build, the tenant doesn't care how much it cost.
Growth projections and accurate data are only found a year or two out after a national census. Companies like BIS Shrapnel analyse this information and produce projections based on the data extracted from the published information. Raw data can be found on the http://www.abs.gov.au website.
Many larger (real estate) companies do their own research and publish intermittent data for specific areas eg RP Data, PRD Realty, Colliers, JLL, CBRE etc however very few produce information on residential.
At present very few OS companies are seeking accomodation for their expat executives due to the GFC which has affected Europe/US more severely than Oz.
Exec rentals are usually done on an exclusive basis with (agency) management as part of the package. See your PMs for details.
Visit a mortgage broker – there are even some who post on this forum. They will be able to advise if you would qualify for a loan either based on income, ability to save (track record) or by using equity/rent returns.
In NSW you have a 5 day cooling off period post signing the agency agreement. The Dept of Fair trading regulates the conduct of the agent and complaints can be lodged with them. The property is not sold until you sign a 'contract for sale', if it is jointly owned, then both you and your husband will need to sign this.
Do you want someone to design with consideration to the environment, use, aesthetics, liveability, workability, constructibility etc or do you just want someone to put something on paper for you? An architect is trained to listen and understand your requirements as well as to interpret the council requirements in order to achieve the best results ie 5-6 years of uni don't come cheap as opposed to a year at TAFE.
If you want a boutique solution, go to an architect, if you want a solution go to a design/construct firm (haute a coture vs pret a porte).
From the vendor's point of view (under advice of the agent), they are in the middle of an expensive marketing campaign. Any offer which will take the steam out of that campain should be unconditional if you want to secure the property. If the campaign is stopped midway based on a 'maybe' which then becomes a 'no' the vendor is stuck having paid for a sales campaign which has been stopped (or buyers have been warned off due to 'deposit taken'.
If I were selling via auction, I would only accept unconditional offers as the offer should be under auction conditions ie you have done your due diligence and have had finance arranged.
Bus 200 m, train 800 m
Get yourself to the university library and put your hands on one of BIS Shrapnel's reports, they are not cheap if you were to subscribe. Like all forecasts, they become dramatically inaccurate after a few years.
If all else fails, the ABS website is useful.
Marky, my feelers tell me that one of the directors at Metropole has moved on to Ironfish so you may look at them too. Can't give a wrap for either but this bod was on the level (had a good chat without putting in the spiel & may continue to cross paths).
If you are unsatisfied with the service of the PM, speak to the licensee of the agency – they control the agency and if they don't know that the staff are not following what you have agreed (usually with the licensee), then they can't take corrective action.
Remember, it takes one month's notice to get rid of a bad PM but two to get rid of a tenant.
Property managers do just that. They don't waste the the time of their contractors so they don't expect you to waste their time either. If you are so concerned about spending $200 odd on a minor repair without being advised of the final costs before the work was done, manage the property yourself so you will not be relying on your manager to do their job.
The agent is a defacto of the owner, unless you can prove gross negligence or that the agent was not acting in your best interests then you have no chance of success. Plenty of case law will back them up.
