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Contact your state residential tenancy tribunal to discuss the matter – they will have heaps of useful information
Statutory Fees will be the same regardless of the type of property investment that you choose ie it is based on the value of the transaction. If it is a commercial/retail property you may have to pay gst on top of the sale price – seek advice in this regard.
As to whether retail or residential is better – only your research will show which provides a better return or lesser opportunity cost. Banks are generally more weary in lending for commercial purposes and may impose stricter conditions like lower LVR, mortgagee consent for leasing/parting with the property and the like.
Residential property returns may be considered more stable than other property investments however you can achieve some great long term tenures in commercial ventures (ie you must offer a minimum term of 5 years to a retail tenant under some RTA state laws) however tenants can request less.
There are varying opinions as to whether you can or should take out insurance on a property prior to settlement – my understanding is that since you do not have an insurable interest in the property ie you do not own or lease it, you cannot legally insure your rights to the property however if it burns down or is damaged you would have recourse on the vendor under contract for not providing the item for which you have contracted and inspected.
There were some posts a fewmonths ago by Foundation whic should answer most of your questions.
2 ways of looking at it Kris, if the unit has a bath who have been your tenants?
Users: Singles/families/males or females – each have different requirements.
Families – bathtub required for bathing kids
females – bathtub, for pampering
Males – don't care
Singles – bath = extra bed when drunk (oops)Predominantly most groups will use a bath.
Economics:
If the current bath is cast iron/metal it may be worth considering getting it reglazed – cheaper than getting a new one put in.Is the bath/toilet/basin in the right location in the room? It will mean that you will need to undertake plumbing work including access into the unit below (possibly) – an added expense.
Can you put a shower over the existing bath and a partial shower screen to stop splashes?
TM, check out the HSC website – most councils have LEPs & DCPs as PDF format for downloading. You will only need to pay if you require a hard copy from council.
Tony, consider this. Is this a property that will be snapped up by the first to view (at or around the asking price)? or is it a property that will stay on the market for weeks, months etc? If you have done your research, submit a firm offer with your terms & expiry date/time (never your best unless you know there is another buyer working on a deal).
SNM
I'd agree, shop around for a lender/ whobroker is prepared to refinance both properties and give you a better deal.
It makes no difference – shop around to find the agent that you believe will do the best job on your behalf (to achieve the maximum price/shortest sales period or whatever your criteria)
Can you clarify a couple of points CDS?
Option 1 – is that 4 x 5% deposits (March, June, Sept, Dec) then balance in March 09 or Dec 09 (12 months from which date)?
Option 2 – Have I read it correctly? Do you pay your deposit and the balance upfront to recieve the 5% discount or do you pay the balance upon completion? The first scenario exposes you to a high level of risk should the builder/developer not be able to fulfill their commitments eg insolvency, planning/occupation approval etc – what guarantees/securtiy is the developer providing to you (bank guarantee to the value of your investment, caveat over the property until settlement?)
Contact your strata manager – they will advise what is covered on the policy and what the exclusions are. If necessary, they will provide a copy of the policy so that you can get your insurers to cover the excusions.
Contents insurance is for the owners contents – you may need to check with your insurer whether it is contents or buildings which covers your fixtures & finishes.
House and contents – covers the internal fittings,fixtures & fitout ie paint, kitchen, carpet, bathroom/laundry, robes etc
Nenal, it would come pretty close to being neutral – ie Purchase = $105+6k costs, Loan = $81k: approx $7k interest, Body Corp $3k (council $????) vs rent $9k. Loss would be about $20pw, less with a really good interest rate or a little more capital.
Depends upon how you want to use the information – if wages are salary-sacrificed for a novated lease (fully maintained vehicle), then you can show that you have no car running costs or alternatively you can show gross income and the amount tied in to the novated lease. Either way, the cost of running your car is counted as either part of your assets & liabilities.
Tony, there is no sure way of knowing whether the agent has passed on an offer to the vendor unless you are present with the agent when they call them. If you can, always make your offer in writing and subject to a sunset clause.
The amount of the deposit doesn't mean much – whether it is 1, 5, 10 or 20%, that is the amount of pain that you want to bear until you own the property. There may be a clause allowing the investment of these funds and the interest is shared.
A holding deposit is a deposit in good faith, it means very little other than putting some money into the agent's pocket until acceptance of the deal. The deposit, due at the exchange of contracts forms part of the contract – part of the consideration (if a deposit is required ).
There is no reason that a cash buyer can't purchase whilst another prospective buyer is hunting down finance approvals – it comes down to how ethical the agent is or how good a negotiator (some may see the agent as going back on 'an agreement' and taking the holding deposit as gazumping, a good agent will keep all buyers in the loop regarding progress of any potential deal).
What a site is worth and what you are prepared to pay are two different things – whilst there is a higher offer on the table it is more difficult (but not impossible) to secure a deal on better terms (if there was a signed contract and a deposit in the hands of the agent, it makes for a very persuasive arguement to accept a no-risk deal compared to one which is subject to conditions).Torrens Titled subdivision gives you unfettered rights regards to the property ie no one else has a say about what you can do (except for anyone benefitting from an easement). Strata subdivision allows the subdivision of stratum (vertically as well as horizontally on a block) this also creates shared rights by way of common property. Strata is the most commonly used form for the subdivision of units & townhouses (multiple dwellings).
A building inspector is like insurance, if you don't pay for it you are exposed to a risk of loss – how much is up to yourself. For peace of mine, I'd engage one as the expert, and again just before the expiry of the defects period to make sure that anything which has or may have failed gets repaired.
TM, garages/carports aren't included in the floor area of the building under the HSC DCP. ie 40% doesn't include your covered parking area.
DA – development application.
KIZ the only downside with that proposal is that both the final purchaser and JNM will be hit with stamp duty etc on the purchase. It would be better for JNM to take an 'option' to purchase the premises at the agreed price of $600k paying a small non-refundable fee then to onsell the 'option' to the end user/purchaser at the price which they are prepared to pay – that way the JNM is out of pocket for the fee, say $5-10k and he then sells the option for $150-200k (ie the purchaser will pay JNM $150-200k and the vendor $600k). In this way, JNM can deal with the property ie try to sell it to party B or someone else during the option period or to purchase it himself. Contact your solicitor to discuss this course of action.
