Thanks Corey.

Not really the news I wanted to hear, especially the outlay.
You implied a contract could assist the situation? So it is more to do with assurance as to the use of the funds rather than me proving I am across my financial situation? Would borrowing with the same lender for the buy potentially help?

Cheers

S

Ethan Timor wrote:

Would be happy to know how it was all sorted out eventually 👍😎

Hi Ethan

It is all finally being wrapped up now, DA is submitted for carport and I have completed requested work from the BC for the bedroom conversion, once Approved sitting variation is back all work will be approved and submitted to council. I have certainly learned a lesson and am lucky it didn’t cost me more than a delay refinancing.
It appears the builder was happy with half the fee plus the DA fee, he was un-contactable for over four weeks until I threatened to share my experience of his services, everywhere I could and as often as I could online, as well as being in discussion with my solicitor regarding the matter. He phoned me the next day and we slowly got all the docs to the certifier and submitted the DA (this should have been done at the beginning).

So what do you suggest I do about the final 2.2k I owe him? I did make comment that I just wanted the work finished and would fix him up once the work was complete.

He has paid 750 to submit the DA, I’m thinking I will square him that. that puts him back at what he appeared happy to walk away with over two months ago?

After a lengthy chat to council I now understand the whole process was backwards. I accept responsibility I should have better educated myself on the process before hand.

Cheers

S

Hi Benny.

Sorry rookie error with the medium pricing, i gave you combined. 3 bed 325k, 4 bed 415k, hence I felt I could try to do better going in next time.

I thought the bones were good with easy wins cosmetically. The block was flat with side access which is not so common in the aria, elevated so no flooding issues, close to train and school + the garage was a very straight forward conversion being under roof line, lined, no problem with heights etc (there are 3/1/1’s selling with less land, one living aria & just a carport for $320K). In saying that this suburb has significant pricing variances street to street. You can pick up a 4 bedder in the mid to high 3s in the less desirable streets. My one is in one of the better arias with more house proud OO’s so I felt it ticked a lot of boxes. Turns out the owners were motivated to sell as they had purchased elsewhere but being as green as I am property negotiation isn’t a strength I yet acquire. B&P came back fine after a termite scare that on second opinion was a incorrect call. so no room to move there.

I got all the small jobs done with a few extra days off work, I didn’t factor fatigue into the last few weeks, throw in some “added landscaping” jobs & a couple of weeks with the flu & the last couple of weeks were tough.

I will be conservative with value as it sits until a valuation comes back saying otherwise. I recon $380-$390. I would be very happy with that. I have generated imitate equity, I know my property inside out, know its sound and appealing to both rental & sale markets. Most importantly though is what I have learned & now know I can do.

Buy, reno, reval, hold and repeat is the plan.

I plan to save some penny’s, pay down some debt then look closer to Brisbane for the next. Logan is convenient though and I could repeat again I just think Bris will have better CG.

Cheers All

S

Thanks Matt

I got on to him eventually, apparently family health scare interstate. I am fine with delaying the work but the lack of communication is not on.

Yes I got on to gum tree & reported the account, had an email from him that afternoon.

Wont be using him again, was a one off purchase and install of an “as new” air con with full warranty at a very good price.

All in all this is the only issue I have had through out the reno & I’m looking to come in under budget.

Cheers

S

Hi Benny

Thanks for the reply. Questions answered.

Cheers

S

Thanks guys

It didn’t even cross my mind until the floods. That could have been a very expensive lesson.

Cheers

S

Hi Benny

I believe I am across the potential offset issues.

Just to draw a clear picture (I possibly should have done this at the start)

This is a refinance PPOR with a new lender, so no other money whatsoever, savings or wages go near it at this point in time.

There are two offset accounts & a loan split 3 ways.

One offset account sits empty awaiting me to place funds at a later date against my PPOR.

The other offset account is against the IO split of the loan for the $ to sit in and not cost me interest until settlement of the IP. This is were the money should have landed at settlement (of the refinance).

Am I correct in guessing you are suggesting I would run into further trouble if I put the IO funds in the offset against my PPOR? That is what I am picking up from your post? My understanding is even if the account was empty the offset interest would have the loan no longer solely for investment use, not good. If I mixed the loan with existing money in the PPOR offset it would be a bigger mess.

Thanks all

S

Terryw wrote:

Ignore what the bank is suggesting they will make things worse.
You need to pay off the loan and reborrow.

Ok, so this is what I have done, I moved the 53k back into the IO loan (effectively paying it back) & then drew the 53k directly into its own offset account where it will sit until settlement of the IP next month.

Problem solved?

Thanks Terry

S

Now I’m not sure I understand?

have the finds redirected back to the -53k or just move it to the offset & reverse any reduced interest resulting form the funds sitting in the PPOR account.

The second option is what the bank is suggesting.

Thanks for your responses, I really appreciate it.

S