Forum Replies Created
Hi Cathy
If you ring the Dept of Fair Trading in the state your property is in, they should put you in touch with the section that handles strata title matters. They will be able to advise you.
Wake
I think Jill means it is land only as she has referred to a “section” so there is no rental income.
Wake
BE FLEXIBLE, AND OPEN TO NEW IDEAS
The investing strategy you started with may not always remain appropriate. Be prepared to change if your circumstances require it ie change in market conditions, change of personal or financial circumstances etc
Remember there are numerous variations to investing eg res/comm/indust; +ve/-ve cashflow; renos; buy & hold/sell and reinvest; max leverage/minimum exposure etc etc You can make money through all of them.
You need to find out what is right for you – and don’t be afraid to change if required.
Wake
Hi Mikala
We sacked our last accountant for the same reason – even after I told him about the ATO decision, he didn’t check it out and said “they might change their mind further down the track”. As we are about to embark on building house No. 3 we had a lot to miss out on!!
WakeThis topic has been the subject of an ATO decision several years ago. Our acountant, Mark Williams, has also confirmed that it is correct, including for IPs under construction. Some conditions need to be met, such as the building being constructed within a reasonable time of purchasing the land.
Wake
Hi
We also have a property in Armidale. The tenants have been there 18 months and are consistently a little behind with rent. PM has been to tribunal and they pay up but then slowly get behind. Otherwise keeping the house in good condition, so we have left them there. I spoke to PM last week about turfing them (as I do periodically), and he advised that the rent market has slowed and thought we could remain vacant for a while. We decided to sit tight until end of year when demand is usually stronger.
We use Perrot & Ritchard, and have never had a problem. They show evidence of keeping on the tenants back about arrears, and are always quick to reply to any queries.
We have had your problem with other properties, and have found that there is no problem changing agents because there is no money involved. We send a brief, polite fax advising them of the situation and keys etc have been available within 24 hours for collection by new agent.
Wake
Hi
The cracks could be caused by a number of problems – could be brick growth, could be foundation movement etc. It needs to be inspected by the relevant professional ie builder or engineer, to be able to determine the cost of repairs. If you submit your offer, it should be subject to inspections, which is a normal condition, but might want to specifically mention the cracks. I wouldn’t be accepting that the vendor is going to repair as they may just do a patch job and hide the real problem.
Based on the info provided, the property will be negative, so you need to look at your current situation and investing goals to decide whether it meets your crieria and comfort level. If you have reason to believe the area will experience reasonable growth, you might decide you’re prepared to bear the ongoing costs.
Good luck
WakeHi Lynette
I know there is a feasability program available from http://www.devfeas.com.au. Don’t know if it is the same program Rich is using, but you can download a trial. They have to email you a username & password but its free. Have looked at it, but not used it to properly analyse a deal, so can’t comment on its usefullness compared to any other similar programs.
Regards
WakeDid you get the company title info in writing? Perhaps they made a mistake and meant strata title. To my knowledge, no company titles have been registered for many years. Strata is what is normally required if the land is too small for torrens title.
Wake
Hi Keiran
After I sent the post I realised it was ambiguous!If your strata plan was registered anytime after 1973, then it is likely that your problem should be referred to the owners corporation. In most cases, the exterior wall of the unit and the balcony slab and wall are common property. The easiest way to confirm this is to ask your strata manager, or to read a copy of your strata plan, but you might need help interpreting it.
So it looks like you probably can “stick the body corporate with the bill” (but don’t forget that YOU are part of the owners corp).
You can breathe easier!
Wake
Sorry – I meant state as in NSW, QLD?
Wake
Hi Keiran
What state is the unit in?
wake
Hi Komari
Jules1 is correct. Residex won’t tell you where to invest. Their reports are based solely on statistics, ie historical data, so they don’t/can’t take into consideration things such as proposed new infrastructure, or the potential loss of income for an area etc etc, but we have found their reports to be quite useful in conjunction with our own research into areas, so the cost has been worth it. There are a variety of reports for different purposes so you should look at their website to see if any are relevant to you. I’m sure you could find all the info yourself from other sources, but I wouldn’t know where to start, and the time you would spend searching could be better utilised doing other due diligence (IMHO).
Wake
Hi MJ
Terry is right. There have been previous posts about claiming interest and rates on vacant land until building is complete (within a reasonable time frame) and the answer is that you can claim these costs if the property is to be an IP. See ATO interpretive decision 2001/479 and other related matters.
This does not apply if you are buiding a PPOR. As others have advised, you should have this clarified by a knowledgable accountant. Ours didn’t know about this, so we have since changed. It makes a difference to your cashflow if you do it a few times.
Regards
Wake
Hi Trophy
Quite a few years ago we had the same situation in NSW. Friends asked us to help them sell a block of land. I was concerned about working outside the boundaries of my license, which is in real estate, but NOT sales, but I was advised that if it is one off transaction, for a friend, there is no problem. I can’t remember where I got the advise because it was too long ago(which doesn’t help you) but it was from an official channel. Anyone is entitled to sell privately, and as long as you are not actively giving the impression that you are acting as a licensed agent, there should be no problem. The matter of consideration is a bit of a grey area I think!! No-one apart from the vendor would know what the consideration, if any, would be.
Wake
Hi Jackal
I have sent you a private message.
Regards
WakeHi Khalida
Not sure exactly what aspects of legislation you are referring to, but you will need a QLD solicitor because the contract and purchase process IS different to NSW eg shorter standard contract period, and you must sign contract to submit your offer (offer in writing). NSW solicitor can’t handle the purchase for you. Hope this helps a little.
Wake
Hi Jenny1
Might depend on what state the duplex is in. In NSW if the property is strata titled then an owners corporation (body corporate) is not optional. However, there may have been a by-law registered that gives each owner the responsibility for their own property and grounds etc. If so, this would specify the situation with the roof, common wall common services etc. If no such by-law exists, then legally any common property maintenance must be paid for by the owners according to their unit entitlement – may have equal entitlements but may not. There could potentially be problems down the track if this is not understood.
If you used a solicitor they should have investigated this for you. Ask them to find out if a separation by-law has been registered. If not, the Office of Fair Trading in your state can help with advise on how to handle any queries or matters that may arise. It’s quite possible for duplex owners to self manage easily, as long as they both have a clear understanding of their responsibilities.
Good luck
Wake
I also went to the Sydney seminar and found it very interesting. Not for the faint hearted or nervous types, but sounds viable, especially if you have the equity to buy outright. For us its worth further investigation.
Wake
Hi Shackles
I have not actually settled on a purchase through a buyers agent, but did enter an agreement and signed a contract but the vendor pulled out after we signed (no reflection on the buyers agent). I believe that if you are time poor, and they can source deals that suit your criteria and are finacially viable for you after their costs, then its definately a good idea. Just think how much money you are potentially losing over the years in CG and rent returns by only buying when your limited times allows. You might find that if you have a particular agent in mind, there might by others on the forum who have experience with them and can give an opinion.
Good luck
Wake
