Forum Replies Created
Is this property considered to be a business property? Seek financial advice as it may be considered a business asset (or whatever) and part of your dad's super, if he is of retirement age, the sale income may be concessionally taxed (as super) not capital gains.
As pointed out above, it is not unusual for a rent increase to be applied every six months however 2 months notice (now 3 in some states) must be given. If you object to the rent increase you will need to follow the proceedure (ie contact office of fair trading in your state and find out what you can do and how).
You can invesigage what rents are being asked for on websites like domain or realestate.com.au or google "old listings" or the like or you can ask other tenants, whether they tell you or not is debateable.
Overcapitalised means: land value + depreciated value of improvements > realisable value of the property. Is this the case if the property requires a great deal of work?
As pointed out above, does the layout lend itself to converting one of the lounges or study into a bedroom? Work out what it would cost to update the house (ie kitchen, painting, 4th bedroom, outstanding R&M etc) and whether this would fit the market ie instant increase in equity/better rental values.
He may need to speak to the fund manager – he may need a transition to retirement pension (trp). Leaving the money in super (rollover to one fund) could be more tax effective than taking it out.
There is some guy who frequently advertises in the Sydney Morning Herald (Saturday) either under self-employment or real estate seeking capital and will give you his experience. This sounds like it might be up your alley.
xdrew wrote:The Contract of Sale document is a document provided by the state real estate licensing authority for the usage by solicitors and agents respectively. It is the agents responsibility for making sure the offer is represented appropriately and all elements of the offer are represented on contract.How the offer is submitted is really up to the purchaser.
AFAIK in NSW it has normally been the Vendor's Solicitor who prepares the contract of sale and ensures that all information required for the transfer of land has been included (ie Contract, schedules, sewer diagram, survey (if required), S149 Certificate etc). Yes, it is a Law Society of NSW/REI document however the solicitor is best placed to create any special conditions which may be relevant and binding upon the parties.
I do agree that the purchaser can submit the conditions they feel appropriate, it is up to the vendor & their advisers to agree or reject those conditions.
Intrigue,
this is a deceased estate, it is likely that there are several interested parties who stand to inherit the funds from the sale of the property ie KISS.
It is likely that the furnishings will be sold separately from the property or the family may wish these chattels, hence it may be unlikely to get your hands on these items.
A/C, & watertanks are part of the building ie they cannot be removed without causing damage, so it is unlikely that they will not go with the sale.
If the property is in a desireable area, it is unlikely that the property won't go to auction hence an unconditional sale or you may need to put your best foot forward with a S66W waiving any cooling off period.
Why do you need 30 days for your due diligence, all of these can be done in the normal timeframe of 5 days?Xdrew, it is generally the vendor's solicitor who prepares the contract of sale not the agent.
i'd probably recommend texts from this author: Peter Butt
Esp: Land Law & Torrens System
1 a) xtg use rights – the current use is inconsistent with the zoning however the premises can be used for the purpose until it ceases to be used for the same purpose; b) prohibited use – you cannot use the property for the proposed usage eg a scrapyard in a residential zoning; c) habu – using a site for its most intensive use under the current zoning eg erecting duplexes on a unit site may not be the habu but still permissible.
2) Heritage listing – prevent/restricts development on a site but may add value to a site for preserving a streetscape.
3)L&EC – administers the EPAA (planning laws) – makes determinations where objections are made to council conditions/does not determine.newish units have the advantage that the previous owner/s have paid the developer’s premiums and the prices now may be less or about the same as when new. Maintenance costs would also be lower.
Expect older units to have more scope for special levies for repairs, breakdown or replacements. A well maintained/refurbished unit will always rent well.
You Could also seek out the surrounding suburbs eg Turella.
I thought that’d be more the case Richard. Banks would also be looking to spread their risk/exposure.
Just register with dbyd & you will get your info within a day or 2 by email, fax or mail. Careful as to select the correct purpose ie excavation not conveyance.
I had to choose my words carefully, I could have said that they were ‘hard’ to relocate but that would be inappropriate.
SNM
There are a few good opportunities around that budget. PM me & i’ll point you in the right direction.
find out from a new zoning certificate S149 if it reveals the land as floodprone. Then design appropriately.
has the agent admitted that he didn’t pass on this offer? Was it evidenced in writing? You may be able to seek some disciplinary action or redress via the oft or vcat.
BigTeddy wrote:How long do your commercial/industrial tenants normaly stick around?
Generally for as long as they are required to under the lease.
BigTeddy wrote:What tenants stay around for a long time?
Brothels or other such businesses which cannot easily relocate.
BigTeddy wrote:Is retail better?
Anything else you mite be able to think of?
Retail is a specialised field with laws regulating what is done. These are more important to have managed by a retail property manager.
it depends. If you already have someone mowing & watering the gardens in your absence, then as long as they have been freshly mows, edges cut etc – no.
As for a clean, vacant houses can get dusty & full of cobwebs & bugs. So unless this is done it will set low expectations with the pm & tenants.
fWord wrote:…If we had a crash, I'd be waiting for things to stabilise and the next big bubble to come.Fword, we have had that correction. Being a mug punter, I look at very simple stats & focus on my local area. Analysis of resales of properties bought in 2007 (pre-gfc) reveal about 6-7% growth over the 3 years excluding CPI, so we have gone backwards. However 10 year average growth is over 8%. What’s worse, the median price (my stat & official stat analysis both give $1.5m). Prices are maintained by restriction of supply as distressed sellers are uncommon & monthly stats are variable.
The stats lie & analysis is a crock.
I’d suggest buying/building a pair of duplexes. You may consider using a trust to hold both properties.
