Forum Replies Created
In Victoria 60 days notice is required to secure vacant possession – there is still plenty of time for notice to be served by the current owner. Is vacant possession one of the conditions of sale? Your solicitor may have to requisition the vendor to comply with this obligation. As for a rent increase, you also need to give 60 days notice of an increase, so this will take effect 2 months after possession.
As for releasing the deposit – there is no compulsion to do so as you are basically giving an unsecured loan to the vendor – what if they fail to complete on time or go bankrupt etc before settlement?
It all revolves around what is not there rather than what is contained in the contract. Good documentation & good contracts leave little room to move.
I would strongly suggest that if you were considering entering into a building contract for a reasonable project ($500k +) then engage a good contracts administrator or QS to review the contract prior to entering the agreement. Managing the project is one thing, managing the contract is another totally separate issue (hence builders have their own project managers, qs, contracts & project administrators).
Buy a copy of any contract guidance notes prepared by the HIA/MBA for contractors.
At the moment, the NSW govt is reviewing whether or not under the Strata Legislation that it should require a lesser % of owners to agree upon a sale/redevelopment than the current threshold. That is, at the moment, it is very difficult for a developer to buy up an entire strata building for redevelopment unless almost all of the owners agree consequently, there are many original strata scheme buildings which have passed their use-by dates and should be redeveloped (this will also take advantage of any changes in zoning/density allowances for these sites). Stay tuned.
It was 0.09% Blogs, not 0.9% – http://news.smh.com.au/nab-breaks-rank-to-lifts-rates-again/20080325-21g4.html
For a little more than $5k you can get a real master's level degree from an Australian Uni, not only will someone have heard of the university you won't be used to do someone else's dog work.
If you look hard (not that hard really), you will find the properties on offer elsewhere without having to go thru CFC (and paying a % above the asking price). Do a google on Spiro Kladis. Just sign up to the daily email alerts. If you look at some of the rents (esp on the commercial properties, they are often unsustainable) – be wary
Before getting rid of your bathtub, consider that 1/2 of your possible tenant pool is female & may like to relax with a soak in a tub (not a half sized shower base).
Maree, as Mr X has sublet the premises illegally (ie he has not sought the consent of the owner/agent hasn't sought this consent and assumed that Mr X was the owner) it would be up to the tribunal to determine whether they would honour this sublease (and ping the owner for his breaches of the Residential Tenancy Act, and the agent for breaching the conditions of his licence).
As far as the bond goes, contact the Bond Board, advise that you have not recieved the copy (possibly in the "dead letters" section of the post office) ask the agent for the bond number (they will have recieved their copy of the deposit) – get them to reissue the receipt and have it sent to your work or other contact address.
Make a call to VCAT to find out what you can do to escape this predicament.
Engage an agent – it won't cost you the earth. Why? How do you intend to show purchasers the property (rely on the tenant, fly to the site each time someone wants to see it)?
Consider selling it to the tenant via vendor finance/wrap etc.
No lease, (this is a breach of the tenancies act), in this case the tenant will have more rights to break the agreement. Bond would not have been lodged with the bond board – another breach (the tenant may lose his bond if the landlord holds on to it but does the landlord want to risk going to the tribunal for not lodging a bond and not releasing it?)
Sounds like you can break it and walk, all the risk of proof lies with the landlord and VCAT would come to your rescue if they chose to prosecute for not having a lease and not lodging the bond (laws put in place to protect tenants).
Depending upon the state you will most likely have to honour your lease obligations ie you may not be able to sell with VP. That will mean that you will have your market restricted to investors and that you will have to be on good terms with your tenant to allow the property to be shown in the best light ie neat, tidy etc rather than a shambles.
Local newspapers/agents – if you keep track of who the selling agents are, you can contact them for the sales price post auction. Local papers may show some of the current sales as well eg record prices or all prices if you are lucky.
As for the capital cities – http://www.domain.com.au now lists each sale weekly.
Depending upon your personal situation & property investment aspirations (refer to your accountant/fin planner) but interest on your place of residence is not tax deductible – so it is usually in your interests to have at least 20% deposit to avoid mortgage insurance and to reduce interest payable.
You may also consider structuring your loan with an offset account to reduce the amount of interest by having your surplus funds and pay go into this account.
Adv of large deposit – lower borrowings
dis adv – you may not be able to access your funds if you then wish to use some of them for other purposes eg investment/travel/repairs etc.Read widely & seek professional advice.
I've always provided the cheques to the solicitor as they then arrange for attendance at the settlement and payment of all disbursements.
Maree, have you sought to find an alternative tenant and assign the lease yourself, afterall you will be bearing the cost associated with finding a replacement tenant (regardless of who finds the tenant) and the landlord is under no obligation to let you out or find another tenant until lease expiry? ie the managing agent probably hasn't lifted a finger as this only creates more work for them – finding a new tenant, new lease etc.
If you are in an area with a tight rental market and are paying an attractive rent at the moment, then the incoming tenant will more than likely be paying more than yourself (thus making it more attractive to the agent to transfer the lease).
Paul D, are you referring to the use of a Put & Call Option? ie something which is quite readily available thru any conveyancer?
Just a couple of points – price and value are not the same thing ie you can buy a property which due to a number of factors you have paid a lower price however its value is intrinsically higher (eg sale between related parties, distressed sale etc). Valuers in preparing their valuation for the banks (or other clients seeking CMV) have to assess comparable sales using the most recent/reliable data available ie completed sales not those which have not settled, not 'out of line' sales or other sales which may skew results – this has a tendency to lag behind a rising market and be higher in a falling market so that adjustments are made according to market sentiment, current conditions etc.
In answer to your question hybrid, yes and no. If you are talking residential property it is generally not the case – as tenants & property managers are such variable beasts two val methodologies are used: summation and direct comparison (DC being the primary method) and S as a check method. Eg a 5 bed house rented to 5 students would have a higher combined rental (and require more intensive management) than say leasing the same house to a large family.
In commercial/industrial/residential/special premises the methodology used revolves around the analysis of cashflows (capitalisation of net income) ie net market rent based on the zoning and permitted use.Research: Footwork – visit each agent in a suburb on a Friday/Saturday to get the rent list and websearch for properties to let.
Generally speaking, an easement is made for the passing of services through or over the land eg for drainage, power. Conversely, a right of way, burdens one property and benefits the other by way of giving another party (a benefit) or right to pass over the other person's land. In your case it sounds like you may have a beneficial covenant granting you a right of way over another property ie the park. The instrument creating the ROW will tell you what can and can't do on the ROW eg to pass over but not to park vehicles etc.
You will most likely not be able to build over the ROW or easement as you do not own it you only benefit by the right to use it.
Linar, the building contracts used by most builders are industry standard contracts eg HIA, MBA or RAIA approved contracts. Amendment to these contracts other than the options provided are generally not in the interests of either party as the contracts in their approved form have been tried and tested (even if they are a bit one sided) – try to use an RAIA contract as they tend to be biassed toward their client not the builder.
