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Act stupid and ask one of the real estate agents who leases the properties out who do their owners use, if anyone?
Living in the old house means that you can claim the depreciation on the newly constructed investment property (if a QS has given you a schedule, then you will be able to claim more than just the 2.5% pa of the construction costs). Mind you, when you come to sell, you have to add back the depreciation to determine the capital gain.
It depends upon how much of the construction cost you are borrowing. If you are borrowing 100% of the costruction costs then the deposit is part of the loan, if not you loan is for a lesser value. What it means for you is that you will start drawing down once you draw the deposit & there may be a restriction on the number of payments made by the bank or the bank may require some form of reciprocal assurance/security from the builder.
Try one of the insurance brokers – you may pay a slight premium but at least they will test the market and come back with a range of options.
Why would it save you any $$? Just get a LOC on your existing place (to draw out some equity) and get a separate loan on the IP, nothing too hard about it. Losing a job is one thing, death/injury/illness may be harder to avoid.
Why is your broker giving you tax advice? How would he know? It just makes the deal easier for them to sell to the financier if they can offer 2 properties as security rather than one. Interest is interest but being able to show that it has been borrowed for investment purposes if it is all in one account is much more difficult unless you keep immaculate records.
Not really. Although you would be on a monthly tenancy that only applies to the notice that you have to give, the owner (in NSW at least) must give 60 days.
As a lessor I prefer to have the tenant tied into a lease however have had several not renew but go on monthly (the same conditions apply in holdover as they do to the lease period).
You noted the termination clause previously that the two parties can agree to terminate during the term & the costs which would apply if you chose to terminate so it may be practical to pick the length of your term to suit the occasion eg 9 months allowing you to find & buy a new unit, get a 6 month tenant & move in to still claim the FHBG (if it applies).
Cross-collateralisation means that the bank uses both properties as the combined security for you loan. If each loan is 'stand alone' the bank can only take whichever property is secured against the loan which you have defaulted against.
Just go onto a monthly tenancy. Depending upon the state that you are in, once you are on holdover the lessor must give you 60 days notice. Just make sure that you are not in breach (in arrears etc) so that you are not likely to be turfed out.
Not alone but definitely the first.
The question now remains, did they cut their rates too much with all of the exuberance of the Reserve?
Do you intend to live in the house that you want to build? If so, any borrowings that you make for it are not deductible.
The residex will give you some idea of prices paid however if there have been no recent sales, you may have to go back further or widen your search eg next town (if country)/suburb, other blocks of units.
There is no simple comparison between units and duplexes/semis as the zonings & allowable development are quite different.
Thx Crosby, I noticed an article in May 09 Money Magazine hence the interest in the tax free status as well as trying to get a little creative in using the bond in lieu of a deposit (ie alternative security).
Richard, would you consider that as cross collateralisation? Or would you suggest that PS have a LOC against his house for the deposit & out of pocket expenses?
If the vendor spent $100k on it, what did they do? It doesn't sound like they did much if there is still the old wiring & cracks reappearing. I would research what other similar properties have sold for in the area. Older properties and those in beachside suburbs require more maintenance than other houses – sea spray tends to affect all surfaces, not just metal (eg efflorescence, salt attack, corrosion etc).
Beachside suburbs rent better in the spring/summer months so you may need to get a delayed settlement (to late August/September).
Do your research, find out when it last sold – the vendor probably bought high and will have to sell low, just how low will depend upon how well you (or a buyers agent) can negotiate.
Eddie, you might also consider a part-time job (in your field if possible/depending upon your study load) to show the bank that you do have some income and a good savings record when working.
It may be a shade difficult Eddie.
1) financier wants to you that you have the capacity to pay the mortgage – will the rent cover the mortgage, insurance & other outgoings?
2) Without other income, you would most likely need your parents to go guarantors (thus putting their assets on the line if you default)
3) Where are you living (at home/share house/elsewhere)?
4)What are your costs at present (budget – rent, food, entertainment, study costs, clothing, entertainment etc)
5) FHBG applies to properties which you are going to live in for 6 months, how are you going to prove to the bank that you will be able to afford to pay once you move into the property if you don't have a job, aren't getting any rent and have outgoings to pay?I wouldn't be putting a a balustrade myself unless I knew what I was doing. If you don't get it put up correctly (ie to meet the AS 1170.1 2002), if it doesn't comply you are likely to be sued.
I was aware of a case a few years ago where a timber staircase failed some 30 years after construction however since the builder and architect were still operating they were sued as joint secondary respondents, the first respondent was the owner who failed to undertake any maintenance on the stair. As a result of the failure, there was one dead body, 2 undertakers and a nurse all at the bottom of the collapsed staircase, they were taking a corpse out of a building at the time.
To the opposite end of the spectrum, what if a FHB buys the home for cash?
Rhys, my contacts tend to be Sydney centric. Unfortunately some of my contacts (like railex & new era balustrading) don't go that extra mile. Doing your research does involve google, yellow pages, word of mouth, vcat (and my little black book) etc.
Timber as you have described it probably will not meet the current code so you wouldn't find anyone who would be able to certify it as complying with the Aust Standards.
Look up balustrading in the yellow pages.
