Forum Replies Created
- hedwig wrote:I am not decided yet if with or without agent, however in most countries no agent is used.
This is Australia, most property transactions are handled by real estate agents
hedwig wrote:2-3% of are at least $6000 after tax for this you may work nearly a month. some people even more. However if you get better results with agent then that's another thing.That is why you use an REA – they are trained in marketing, property appraisal and negotiation.
hedwig wrote:When we bought, the agent didn't do much and I would have preferred talking to the previous owner as I could have asked questions about the house. The agents we met buying our house didn't have ANY idea of the houses. Which material? Don't know! When Built? Maybe ah I don't know. Asbestos? Maybe. They didn't only have any idea about the particular house, but they had NO technical idea about houses in general, all of them. We didn't receive plans, we didn't receive names of tradespeople who worked there before, we didn't see old bills what was done, nothing.Unless you are buying a new property you will generally not get floorplans (more likely if you are dealing with the developer).
Home owners are not obliged to pass on details of maintenance undertaken so agents do not have this information.
Asbestos – you will need to engage a consultant to test the material however your building report should give you the approx age and this will indicate whether it was constructed prior to the banning of asbestos materials in construction.
Council records will indicate the age of the property however most REAs should have a good idea as to the age of buildings and construction styles.
If you are undertaking the due dilligence – get a building inspector to prepare a report, they are the expert in building not the REA (who is working for the vendor).
hedwig wrote:A cover of paint is maybe not a lot of money but a lot of pain, and this does not refer to the painting itself but for the preparing, but I guess it would be really value adding. On the other hand I don't like buying a property recently painted, as i may cover damages like leaking roofs.Get a building inspection done – this will draw attention to waterleaks or watermarks indicating current or previous leaks or structural damage.
hedwig wrote:However the main question is: how quickly will the market break down?? And how quick do we need to sell?Ask the agents what the current trend is with regards to days on the market.
If the tenant takes the matter to the tenancy tribunal, you will lose – this is accidental damage and would be classed as fair wear and tear.
Patch the carpet, get on with life. Carpet has a limited life, accept it, especially if they are prepared to pay for it.
Ben, you call it a multiple offer others call it gazumping. If you were in the same situation which offer would you accept?
Conversely, was the sale price a matter of $ above yours or were other terms and conditions more acceptable to the vendor? In any case, the vendor had a choice and your offer albeit the only one on the table at the time was trumped by another.
Hedwig, only undertake works which will add value, if you do not believe that you will get the return + from the work eg the patio, don't do it, leave it up to the purchaser. A coat of paint won't cost much but will hide a myriad of problems.
I personally wouldn't get out of bed for what it would cost to have an agent do the running around. Think about it this way, they will charge 2-3% most likely (based on NSW rates) which equates to say $6-9k, how will you determine what your house is worth, market the property in the best possible light, be able to negotiate in a detached/unemotional manner, close a deal, follow through on instruction to solicitors, arrange for opens etc. If you are just 1 or 2 % out ie underpriced, you have negotiated down the price even before you start, if you start too high no-one will knock on your door. As for signage, tell the agent what you want: ie I want a display advert in the local paper, featured in the advertorial, colour photo of xyz of the house on the signboard etc (hint, there is no point having a photo of your front yard on the photo, possibly the rear yard, pool, landscaping, entertainment area – something you can't see from the street).
Propective purchasers will say whatever they want, an agent creates that distance between purchaser & vendor and is then able to give you the feedback positive and negative as to what people have said – they may not be as open if you are selling it ie 'the yard is awfully overgrown' may suggest to the agent that you get some trimming happening or it may be a point for negotiation whereas if they said that to you it could cause offence.
An agent is well placed to provide counter arguments to issues raised and to pass on suggestions.
Essentially you work with net yield. ie You need to know that Gross rent = net rent + outgoings; passing yield = initial net rent/purchase cost; theoretical yield = fully let net income/purchase cost, current yield = net income/curren market value.
World Changer wrote:if in nsw the landlord pays the bill up to certain usage then the tenant pays the rest.
Youd have to check withh the dep fair trading i would think for the figures.
Sorry to contradict you WC, if the lease states in cl 29 that the tenant pays for usage, then they pay for usage. The owner generally pays the sewer/availability charge. http://www.fairtrading.nsw.gov.au/Tenants_and_home_owners/Renting_a_home/Renting_costs/Water_and_sewerage_charges.html
I'm with Terry on this one. If you have exchanged, in the absence of a fault in the contract, or you pulling the deal within the cooling off period, then the vendor has accepted your offer (as they have signed the counterpart contract for sale). They cannot accept another offer without having recinded the first (yours).
Depends largely upon the state in which they are located and how close to the cbd and if they provide 'low-cost accommodation'. Refer to the Office of State Revenue if in NSW (concession on land tax if located within 5km of cbd).
Where water is metered, and the tenant is under a recent lease (ie post 199x reforms), there is a provision that the tenant pays for water consumption (it may differ from state to state but see: http://www.fairtrading.nsw.gov.au/Tenants_and_home_owners/Renting_a_home/Renting_costs/Water_and_sewerage_charges.html
It doesn't take much to google many of the sites on the cashflow capital website and discover them for yourself, plus many others. Save yourself the 2% and do some legwork.
If that is the case, then you might consider gas boosted air conditioning. The heating capacity is increased (due to the gas burner) and you get away with a lower powered cooling system. This is only for a fully ducted system. It has marginally higher upfront costs but your winter running cost will be much lower, recouping itself over a number of years.
1) Not sure about victoria, however your floor plan should indicate the extent of your premises. I have seen the odd unit with the balcony, courtyard or garage being common property (as it is external to your four walls) however you have got exclusive use rights. In other cases, garages may appear under a separate lot number eg: Unit 2 & Garage 22 being lots 2/sp1234 and 22/sp1234
2) Most solicitors will undertake a review of the S32 before you sign a contract, go see another solicitor or a conveyancer. (His advice would be akin to saying you don't need a barrister until you get to court). By the sounds of it you have never purchased before and will require your rights and obligations explained to you before you get tied into a purchase not after.
On the downside, IO in a falling market will mean that you may soon owe more than you have borrowed or that you will be unable to refinance as you no longer meet the criteria without mortgage insurance.
This is highlighted by margin calls on shares and the issues many people are having trying to refinance from higher fixed loans to lower rates.
IO works well in a rising market where you will build equity quickly (through the rise in the market).
A few things – building costs are starting to come down (price of steel is dropping), lack of work for builders is following & property prices are depressed.
If you buy, build & hold, then it can be profitable ie buy & develop whilst it is cheap. If you are looking to buy, build and sell then you will be selling in a market which is still undergoing correction & some fragility (prices are still dropping for properties so you may make a loss).
Analysis, analysis, analysis.
Look at it this way, you gave them 'nothing', you should expect 'nothing' in return ie read the make good clause in the lease, any clause which relates to transfer of ownership and obligations with regards to incentives paid (eg fitout may transfer to lessee at some point in time however all depreciation has been claimed by the lessor).
Strictly speaking requiring the tenant to repaint prior to vacating/post makegood can be argued that this is not make good. It is better to have the tenant repaint in the secondlast year of the lease + make good & touchup.
Overheard in a discussion between the builder, project mgr & architect when discussing termite damage: "Just paint it blue & ignore it….". Needless to say the PM cracked up, the architect didn't know where to look
Time is money (a quick settlement means less interest charges for the developer)
If you are keen on 2, hit them with a lowball offer say $330-340, offer decent settlement (must be something in it for the vendor to settle quickly), submit a signed contract with a deposit and submit your letter noting that it is open to acceptance for ?? days.
As the property is in your name, you cannot technically sublease the property yourself (it extinguishes the lease). If the property is held by a trust or a company or any other entity, that entity can lease it to whoever it likes as the ownership is not the same person as the occupant.
ajayayyar wrote:Scott No Mates, so the answer is – basically even if I engage an agent, the rental is not guaranteed?
To me, it seems that the ONLY way to receive guaranteed property rent is to either sign a lease-back agreement, OR get involved in DHA properties.
Is that correct?
Cheers
AjayYou've got it – the only guarantee you have is the bank guarantee/bond/security deposit. Even a lease can be broken however the closest that you will get is a sale and leaseback (DHA is just one example).
