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There's nothing like a direct approach. I wouldn't submit a DA before making contact as council will send them a letter notifying of the proposal. If the neighbour is old and they don't want to move, you could take an option out over the property (exerciseable upon their move into a nursing home/death) or allow them to stay in the house for X years (they don't like being moved).
If you didn't want to show your hand, engage a buyer's agent to act on your behalf (that way the neighbour thinks the approach is from a drive-by).
A property is only strata titled if an application has been made, strata plans lodged and approved and separate titles given to each lot. Otherwise the property would remain on the lot(s) which were developed. A separate DA needs to be lodged for approval to strata.
The benefit of owning all of the units – total control, no need for a strata manager or executive committee, ability to sell one or more of the units (as opposed to owning a non-strata block).
Disadvantage – you are paying X+1 lots of rates
Ajay, the property manager is your agent ie they have all your responsibilities but not the final say. Can you guarantee a return on your own property? Othewise, look into buying DHA, a developer's show house/property with a rental guarantee or buy into a property syndicate.
More so a case of over commitment & keeping up with the Jonses.
C2 wrote:Sydneyme,Not necessarily irrational but more like frustration at seeing love ones and friends kicked out of their homes from greedy banks.. Put yourself in their shoes.
Maybe if investors stop trying to pick up these type of repossessions from banks then the banks might not be so eager to repossess and kick people out of their homes.
C2,
Banks, greedy??? I have yet to see a bank force money into my wallet. Yes, they may have low standards, but that says alot more about their customers than about themselves.
They have never told me that my LVR is too low and I should borrow another $#@! Million to buy more properties, a bigger house, renovations, new cars, plasma tvs, a pool, a holiday house and a lifestyle. I control my wants, I have no control over my basic needs.
I do not need a new house or the things in the list above – a roof over my head is sufficient. Exercise some discipline over the things that you don't need, do without, get sound financial skills then get advice (use your newly attained skills to understand that advice that you are given).
At present all we're seeing is spin doctoring & BS from KRudd & nothing in the way of support from the states (NSW is an exception, it is broke and Qld isn't far behind). Regards your comment with Foolwatch, is was a political stunt (sounded good at the time to those who aren't in small business or understand economic theory). Yes it might be easy to criticise from the sideline however when the leader of the country can stand up in parliament addressing the country for 20 minutes and making an announcement announcing that they will be running the first deficit budget in how many years (a bit of a turnaround from the $10B + surplus just over a year ago), there is no wonder why people are starting to see through him and his lack of substance. HE was all too quick to criticise the strength of the economy when taking over the reigns in 2007 along with his treasurer talking it down on the world stage but he only now is coming to the realisation that he has blown a hole in his shoe. Yes, we may avert a recession but we will not escape unscathed.
The answer is yes, no and maybe. Refer to your industry association.
If you are insulated from it, as Dan notes, you won't feel the brunt of it. However, if you lose your job, fall behind in the mortgage, take maternity leave & can't get back into your old job you'll say it is the worst it has ever been.
hbbehrendorff wrote:But I thought Lord Rudd Fixed the economy with his economy stimulus plan ?Ah yes he has.. and as an added bonus he's going to run a budget where expenditure will exceed revenue (but only in a temporary fashion) so that we can avoid an extended period of contraction in the economy unlike the rest of the world who will run a deficit budget and suffer a recession.
Find yourself a leased industrial or commercial property with a quality tenant in the sub- $700k category. It will be positively geared, on a long secure lease and you won't need to worry about too much for several years.
Plumbing & PC items form a very small component of the overall building cost (about 5% installed after margins). Is this big enough to make the project profitable?
Yes there are loans where you can capitalise your interest however in the current economic climate I doubt that banks would be jumping out of their socks to stitch up a deal.
If you are trading in a loan on a lower rate of interest than is currently available you are doing the bank a favour ie releasing cheaper funds – they should be paying you the difference not the other way around. From what you are saying if wholesale funding costs are so low at present why are they not reducing the loan rates (other than scarcity of funds) – if you can get them to put their wholesale cost of funds in writing, take it to your mate in canberra Wayne (or better yet Joe Hockey) and get them to have a stoush with the banks. From what you are saying, the interest rates should be lower (as the banks are maintaining that the costs of funds are well in excess of the reserve bank rates).
Google it – melbourne agreement.
Long history of Scullin (PM).
Agreement was repudiated by later PM (can't recall who but it is in the article).The australian economy has come a long way since, so has world trade and economics.
No, they sent out Lord ???? from the UK not a seppo.
Probably worth considering P&I (even though repayments are slightly higher) with an offset account for your additional savings however P&I will restrict your cashflow a little.
Yields are good at present however they will tighten when the market changes – rents will drop and subsequently affect the serviceability of the loan.
As your ppor loan is not decuctible, it may pay to keep reducing the principal on this loan whilst borrowed funds are cheap (possibly use the offset account to minimise you nondeductible interest and keep your payments at old levels).
They use a large super sucker – so there is a huge plant/machinery cost plus they provide the labour. Even if you get a big wet/dry vacuum from the hire place it will still be very slow. (Your ceiling is probably 100 m2+ x 75 mm of insulation – that's about 7-8 cubic metres of material and your vaccuum holds 10 litres if you are lucky ( ie 700+ vacuum cleaners).
If you want to wear a dust suit & a hepa mask, grab your garden blower vacuum (it has a bit more capacity but it will be very dusty). Otherwise, bite the bullet and get it done properly.
Banks are obliged to achieve the highest possible price for a mortgagee in possession sale – so you would expect. They are rarely a bargain because of tighter competition.
If you are looking – South Western Sydney Liverpool/Blacktown/Fairfield LGAs.
It highlights that there are issues with the building, probably with the original construction. The Dept of Fair Trading is a toothless tiger in NSW when it comes to litigation against builders (basically, unless the builder has gone bankrupt, repudiated the contract and died all in the space of a week you have no chance of recouping any money for repairs). Hence you may be buying into a building with ongoing problems and costly litigation – special levies etc.
It is unuusal – yes.
Sorry but I have no idea about Blackwater but past experience with leasehold is that you will need to undertake detailed cashflow analysis with NPV & DCF calcualations. You need to consider whether you will own the improvements and whether you are liable to remove these at the end of the lease. Consider your payback period, term of lease remaining. That is, at the end of the lease you are faced with negative value ie cost of removal with no tenure, so you before you make any profit it is necessary to make the cost of the improvements & demolition before you can say that you have a return on the property.
Eg if there are 20 years remaining, leasehold will cost $210, house is worth $140k, demo $14k, you will need to make $8k pa to pay for the improvements (this is already 4%, but you will require a higher rate of return to justify the investment considering that you will be up for all of the standard holding costs plus land tax as you have an equitable interest and these costs can be passed onto leasehold as it is not a standard lease for a house).
On face value, the returns will generally look great, positively geared etc however you will need to do serious due diligence to determine whether there is a dollar to be made over the period.
fishngym wrote:…Are you suggesting that as I am not the owner yet, technically I shouldn't be permitted to take out an insurance policy on a property that is not yet owned by me?
…The seller seems to be quite a reasonable bloke, so we're not going to jump up and down. …
Further to your comments mate. We have been curious about this question.
The current tenant moves out 6 days before settlement. A new tenant is moving in immediately for a 12 month lease. The real estate agents receive one weeks rent ($500) as the letting fee. This lease commences during the period in which it is owned by the seller.
Does this mean that the seller will receive 6/7 of the first weeks rent, and 6/7 of the letting fee? Or is the letting fee our responsibility?
1 – As the property has not transferred, you do not own it (yet). Typical example would be if the contract was void or invalid due to misrepresentation etc eg advertised as a 4 bedroom brick house with pool and it was a 2 bdm unit. (A bit extreme but obvious).
2 – Sellers are always reasonable people (until you ask them to do something)
3 – However, your only remedy if the house is damaged prior to settlement is not to settle (you may get a binding undertaking that works will be completed/restored but also withhold $$).
4 – As to the lease, who has engaged the agent? If you have, then you will be liable for payment of the agent's fee. If the vendor has engaged the agent then it will be the vendor's liability (however as you are going to benefit from it you can go easy on this point). If no-one has engaged the agent, then they are not entitled to payment.
5 – Vendor is entitled to the rent up to the time of settlement (hence also liable for damage).
6 – You will need to sign an agency agreement with the agent if they are to manage the property on your behalf .
SNM
The value will be greatly determined by the conditions of the lease eg term remaining, lessor rights to terminate, lessor right to approve structures & alterations, requirement to remove improvements, right for assignment of lease etc. You will need to do your research to ascertain the company's plans for expansion etc.
What are you buying right to use vacant land or land with a building?
