Forum Replies Created
Jim, as with all investments you will need to undertake your due dilligence (more than just doing the numbers), you will also need to be prepared to handle long vacancies eg 6-12 months in return for a 3-5 year lease. You may have to provide incentives eg rent free periods or capital towards fitout, you will need to engage a solicitor (or a very clued up property professional) to explain all of your rights & obligations and how these differ from residential investment (or others eg retail/shops). You may need to consider professional management ie commercial REA. Invlolvement in BC is usually minimal as most owners are investors and do not live/work in the premises unlike residential (unfortunately) – just my observation over many years is that there are very few well maintained strata commercial/industrial properties and strata retail rarely works (for shopping complexes) as there are too many interested parties to have a well-directed centre manager.
If you plan to purchase under auction conditions then you have been given sufficient time to undertake all of your investigations including pest/building inspections. A vendor will not accept an unacceptable risk post auction for the contract to fail – if you plan to have additional terms added to the contract you must get these negotiated and accepted prior to going to auction.
$16K buys a helluva lot of CPD or real courses. So I'd be wary of what someone could teach me for $16k no guarantees.
I usually get the vendor to agree to a very short term lease-back ie 1 month (or less), rent is factored into the sales price & settlement is made as a going concern.
Why would providing solar panels mean you could charge more for your property? If you put in water saving taps & dual flush toilets did you ask for more rent? When you put in windows/skylights to allow in daylight, do you ask for more rent as theydidn't need to use the lights as often? If it rains, do you figure that they don't need to water the garden as much, so they can pay more rent?
It depends upon the style of house & whether the sills are required to match any other sills in the house. If you don't need them don't put them in – added $$ for no return (They'll probably sit behind curtains anyway).
Jezza, a prerequisite for FHBG is that it is to be a ppor within the first 12 months. Buying a development site does not preclude you from getting the FHBG on another property.
If you are in NSW: NSWHCAP
The Sydney Building Information Centre runs regular seminars like this one: http://hiceventsblog.blogspot.com/
You just can't ring up a barrister (unlike a barista) and get them to do your bidding. You will need to get a solicitor to instruct after the solicitor has gone through all of the motions. AS pointed out above either you serve notice to complete (which you have done) then seek to terminate the contract or you can sue for specific performance or terminate the contract and remarket it (knowing that you can accept $38k less as you have got it from the previous failed contract). What is your REA saying? They have an interest in this deal as they don't get commission if it falls over.
Agents are required by law to bank any money recieved by the close of the next business day. They must also provide you with a numbered receipt stating what the money is for, the date, the amount paid and by whom. This does give rise to an issue if you want to get the money back/withdraw the offer/offer is not accepted as the agent can only draw a cheque on cleared funds.
If you have owned a PPOR (to which you have said yes) – then you do not get it.
If you have previously recieved the grant (to which you have said yes) – then you do not get it.A property manager is someone (or a company) which manages properties for investors. They take on the legal responsiblities of the owner acting as their agent in regards to an agreed scope of matters pertaining to the property. Their works may include finding a tenant (marketing/inspections/lease negotiations/fielding offers etc), lease preparation (for commercial/retail leases less than 3 years duration), undertake rental appraisals, lease management including rent reviews, administration of make good, attending to minor maintenance issues, collecting the rent & outgoings (usually via direct deposit), paying disbursements (outgoings & other costs), paying the owner the balance (less their commission), undertaking regular inspections of properties under management, following up unpaid rent, evicting tenants, appearing at tribunals where disputes arise etc all on behalf of the owner.
Larger/full service companies also undertake the facilities management (regular or programmed maintenance including providing fire safety certificates, servicing of plant and equipment, undertaking cleaning of common areas, waste removal etc) or the asset management which includes cost planning, asset life cycle cost analysis, creating plans of management and maintenance, project management of upgrades and refurbishment, they may also advise on occupancy issues, compliance requirements, cashflow analysis and modelling.
All in all they do very little but may add great value as they nave a skill set that many investors do not have or are too small to have the inhouse expertise.
Shiv, that sounds like a valuation for statutory/ratings purposes, not one prepared for market value.
Tools wrote:If you are going to DIY then any glazier will be able to supply the glass and the patch fittings.Tools
They will only certify that their glass meets the AS not the installation (they cannot certify something that they haven't installed)
WTF – if you salary sacrifice the car (or pay addit to super etc) this comes out of pre-tax salary. You would generally have a car regardless of whether it was owned, HP, personal loan etc, so why do some banks crucify you for having finance transport? Sure your taxable gross is reduced but they should still be looking at your package.
Generally you would subcontract the lot to a balustrade manufacturer – I wouldn't bother taking the risk with trying to get your own installation certified by an engineer. What do you save when a kid falls through a non-compliant railing?
You should be able to check with council about the date of the occupation certificate for the building or the DA/BA date.
Equity = Property value – borrowings
Property value is what the bank's valuer has assessed the property to be worth.
What sort of valuation has a 'use by date'? Valuations are done on a specific day based on current market evidence, it is not valid for a period of time.
Hence if you bought for $350+ sd and the bank has valued it for this amount, then you have zero equity.
I'll just add one more point for consideration – pay it back on the PPOR, reborrow via a line of credit however much you feel comfortable with and use this for deposits on other IPs. Then secure the new IP loans against the IP not against your house.
As above (more or less) – borrow $60k against your house on LOC or if you have other income to support a larger loan, borrow 60-80% on LOC (but this may put your house in jeopardy).
Puchase 2 or more IPs using the $60k or more as deposits (providing you can fund the repayments).
