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Most vendors have no idea what a option is to begin with and then begin to run a mile when you try to get the agent (who also might never have done it) to explain it to them. I have had plenty look at me and think I'm trying to pull one over them.
How about just security substituting the loan. Although restricting you to a similar amount, you can save on LMI costs if you choose the right bank ie if you already have 95% loan and paid LMI once, If you paid out and canceled the loan and set up a new loan for a new property you would incur LMI again, so instead swapping the securities and LMI would transfer at a reduced cost to the new property ie they might discount you some of the LMI instead of charging you the full lot, depending on how fast your flip the property months years etc reduce from 70% – 50 % etc.
Most vendors have no idea what a option is to begin with and then begin to run a mile when you try to get the agent (who also might never have done it) to explain it to them. I have had plenty look at me and think I'm trying to pull one over them.
How about just security substituting the loan. Although restricting you to a similar amount, you can save on LMI costs if you choose the right bank ie if you already have 95% loan and paid LMI once, If you paid out and canceled the loan and set up a new loan for a new property you would incur LMI again, so instead swapping the securities and LMI would transfer at a reduced cost to the new property ie they might discount you some of the LMI instead of charging you the full lot, depending on how fast your flip the property months years etc reduce from 70% – 50 % etc.
They could be selling the property on tender. If so then realistically you do only get one chance to put in your best offer as all offers would be presented to the vendor at the same time. Yes it is a blind auction but they are allowed to do it. If they are not selling on tender then that is the really frustrating bit. When they hold your offer sometimes for up to a week because they are waiting for another interested party so they can say " We currently have a offer on the property" thus spurring action from the new buyer who doesn't want to miss out. You could put in a sunset clause " Offer expires on 7/02/13 at 5 pm to hasten their position.
Was it just that fact that the timber frame structure supporting the garage was broken? Or is broken timbers just broken pieces of wood?
Desired income – 150k per year
Capital needed at 8% yield commercial property – 1,875,000
Solution – make $1.875 million.
Its like when a obese person asks how lose weight. Eat better, Exercise more.
Its the How and why should i do that are more pertinent questions. Information is everywhere, this forum is full of it.
1) Use another avenue for the lending (eg if your dad is cashed up outside his superfund and can lend all the monies to the SMSF that it requires to make the purchase. Note however there can only be one lender per SMSF property, so if your dad himself is the lender, he can't then get additional cash for the SMSF property from a bank)
2)- Buy the property in the SMSF with a bank loan, and wait until the thing is paid off and then strata-title
1)Both these options would be reasonable options for him.
ie option one set up LOC on couple investment properties. Loan money into SMSF and then purchase, strata title/renovate and sell after 1 year paying 15% tax. (because it is set up so that he pays interest to himself (because he is his own lender), what would happen then if he charged himself 7% whilst his LOC is only 5%, he wouldn't be allowed to Im guessing as that would be extracting smsf cash from the smsf itself (bit by bit).
2)- Option 2 is viable as well. As the Unit block itself 4 units currently has pretty low council rates by itself. After he paid off the loan, most likely would be in retirement phase, strata title the units and sell off for a nil captial gains tax.
Well 1 more week to go of DD before tender closes so we will see how this turns out.
If you have time up your hands and obviously a bit handy. Obviously ex housing fibro homes very easy to pick that its a fibro. You could spend 1k on 30-40 sheets of blueboard (hardiflex, villaboard etc) blueboard the entire outside of the house, then use 20 buckets of cement render and render the whole thing. 3k total spend. honestly some people cannot tell that used to be a fibro if done correctly, they tap the external walls and it sounds solid and the people that can tell are just impressed that they can live in the only rendered house on a street full of fibros. id say the time on that would take at least a full week if you have not done it before or you have lots of ledges,window seals, window openings.
The quickest i think for me is 37k after a 5 week renovation during early access. Had to bring forward our settlement so the new buyer could purchase it.
"Put the Nundah Bowls Club under Option subject to a DA and paid less than a $1M."
How much did you have to pay for the option fee for that ? Is there a accepted minimum option at that level or is it whatever you come to with the vendor ?
I agree with Nigel. Couple weeks will not hurt. University doesn't start till march does it? So plenty of time.
jmsrachel wrote:Richard, just out of interest why would the valuers report be changed to the lower price?The bank would go with the contract price and not valuers valuation. He could of bought extremely undervalue say paid 300k for a house that gets valued at 400k. The bank would go that is nice heres your loan for 300k.
But if he knew he bought undervalued he might be able to wait a few months, not sure what the minimum is 3 months, 6 months time even 1 year and go refinance with another bank. New bank would value at 400k and he could refinance out his own equity if he wanted to.
Good effort and good work ethic!
Id be interested to hear how long they lock away your equity for after the completion of the project.
Then after that id be interested to hear about how you go about refinancing or using your equity out of the project to 'kick start' your journey if there are multiple finances coming from individuals.
I think the 5 year period of gst only starts after the completion of the dwelling and that its been signed off. so it could technically be 6 years if you built it with a 12 month build contract.
Correct me if I'm wrong I understand the margin your calculating being 630k-530k – 100 k 1/11th being 10k.
but there's going to be gst credits for alot of the work to get that piece of land up for sale.. So a lot of that 10k payable being able to be claimed back after bas statements sent in
The gst wouldn't be 10k if you were selling the development on the margin scheme, it that scenario it would more like 1.3k
I guess that would imply that the sole beneficiary ie the family trust gets 100 percent of the income if it owed 100 percent of the units and therefore the family trust would then split up income anyway? Quite strange how they come to these policies.
Yes still tax deductible. But correct me if I'm wrong finance gurus. If your friend took a 20k loan and spent 15k on the house and 5 k on say a new tv he would have a harder time claiming the interest as a tax deduction, it could be apportioned but would prob get messy
Terry, I guess if this lender was to only lend to unit trusts over discretionary trust. What happens when it's the family trust that owns the units of the unit trust?
Are these adult beneficiaries the ones listed on the trust deed. Currently I only have myself as the sole beneficiary with the trust deed allowing for other family members companies ect to be beneficiary. Antonio if you could pm those details it would be great.
