Forum Replies Created
Regarding whether or not you can have a copy of the report… when we were selling our PPOR (nine years ago) our buyers had a building inspection done which showed white ant damage to three stumps which would need replacing (NOT active, but prior damage). They wanted a reduced price. Our solicitor advised that because the sale contract did not state that we required a copy of the building report should there be a problem, buyers solicitor was objiged only to quote portions of the report in a letter, which is what we got, a very incomplete snapshot.
Buyer’s solicitor was family member and a tad power mad and extremely rude to our solicitor. He caused us so much angst. I caught sight of him with our buyers months after the sale at an auction that he missed out on (sweet justice!!).
Anyway, whether it was right or not, we were not permitted a copy of the building report. I suspect that it was because the three stumps were the only problem in a house that was lovingly renovated (we had intended being there for ever and had not cut ANY corners).
Last house we sold to young couple, very nervous. Building report stated “water damage evident” under bathroom. They wanted us to reduce the price as well. We had someone look at it. Water damage was probably over 20 years ago. New bathroom had gone in since then. The problem with building inspections is that depending on how they are worded it can mean the naive buyer running a mile (sometimes without any reason) or the seasoned buyer trying one on.
I have little time for most of the building inspectors I have dealt with.
My lesson for any future sales is that I would add to a contract that should there be a problem with the building report, we require a full copy. Better yet, I think if I was to sell now I would get my own building inspection done so there are no nasty surprises.
My thoughts, Wylie.
I also have paid over asking price for one IP. Phoned REA wanting to look at a house I found while driving around our suburb. He said he had 4 contracts being presented that evening, one inspection that afternoon and I could have a look as well. I thought it was a cracker. I faxed a contract for hubby to sign (he hadn’t seen it, didn’t know I was looking at a house even).
Asking $153K. Knew four other offers were going in that night. We knew we had one shot in these circumstances and contracted at $155K. The next lowest offer was $154K and that purchaser tried to gazump us but the vendor was honest and stuck with us. It took the REA 4 hours to let us know because the under-purchaser had his solicitor trying to get the vendor to rip up our signed contract and sign his. There was dirty work afoot that night but we got it. It has been a gem.
The other nasty experience we had was offering an extra $15K on a house we fell in love with. Verbal offer $320K had been accepted but in Queensland, I’m told by a solicitor, until it is signed, it is not a contract. We offered $15K more but I’m fairly sure our offer didn’t see light of day. Verbal purchaser was a solicitor and threatened REA with a lawsuit if he was gazumped. Vendors were beneficiaries of the estate and I’m sure they would have loved to hear what had happened but we didn’t go down that path because REA was a relative and we didn’t want to put his job in jeopardy.
I have dealt with some fantastic REAs and some very ordinary ones. The bad ones just don’t ever get my business again and as the saying goes, you tell two friends, they tell two friends. It is amazing how quickly a bad reputation gets around.
Regards, Wylie.
I have had bad tenants and great tenants. But mostly great tenants. We once had an ex-army guy who used to call me on mobile (I am a woman, he is a man) to ask me to arrange to change the washer on the tap. Goodness knows why his lovely fiancee was going down the aisle with him.
Generally though in the 27 or so years I have had one or more IPs the bad tenants could be counted one one hand. We once had tenants who kept some ducks (6km from Brisbane, suburbia) in the back yard (big block). No problems until I called one day to put something under their door. The ducks had been sick so they moved them into the front closed in vehandah. We had a little chat and they moved, but they had been great tenants.
The people in that house have been there nearly three years, with one request in all that time. Easy peasy!
I think that things look bad only because people generally don’t complain about great tenants. And some of us ARE happy to earn our 4% (or whatever – I never work it out) simply because our IPs have increased in value enough for us to be very, very happy.
Basically, you just have to judge any requests and give an answer. If tenants are unhappy with the answer, they can move. If it is for a ridiculous reason, like you won’t jump to change a light bulb, well then, good riddance.
Regards, Wylie.
Forgot to mention in my post – make sure the pool builder is a member of SPASA. If something goes wrong you have someone looking out for you. Our pool builder was not a member and he had (told to us by one of his subcontractors) 30 shells to finish in the weeks prior to Christmas. We had many grey hair moments getting our pool done before he went broke. We also found out we didn’t have a finish date in our contract, so we couldn’t jump up and down too much about how long it took.
We got a great looking pool but lots of grey hair on the way. We also learned about what to ask next time. We went up a notch in the filter size rather than have it struggle. We used green tinged pebblecrete (we didn’t want a blue pool) and salt. Make sure you use someone who is recommended, or one of the big companies. Our pool could easily have been a disaster, but we were lucky it worked out, because we really didn’t know much about it before we started and though we did our homework, it is the finer points that can trip you up.
Good luck, Wylie.
Celivia,
You took the words right out of my mouth. As long as my kids respect our house and rules, they will be welcome. I rather hope they stay a while because I would miss them.
With respect, Wylie.
I am with the “get the pool” camp. We put one in when our youngest was nearly three and I understand your nervousness regarding safety. They learn to swim very quickly in their own pool. My mother used to sell real estate and always told us to buy a house with a pool rather than install one ourselves. That way someone else has had the cost and problems. However, we picked our house and then put a pool in. We have never regretted it. Kids swim all summer. The upkeep is quick and simple. We don’t touch it through winter. It looks after itself. During summer I get the water tested for free at the local Swimart and add whatever I need to about once a week or so.
We realise that when we sell we will be restricting our market to those that want pools, but we can live with that. In Queensland, lots of buyers still want pools.
We did the solar thing and it does extend the swim season a lot longer than without. We also covered our pool with a sunshade/pergola so we really had to heat it or it would have been too cold for part of the season. I love the cover though because we don’t have to worry as much about sunscreen like we would normally. It also means on the hot days, the pool doesn’t become a warm bath. A big moveable umbrella would do a similar job.
Our pool is right at our back door, so I can supervise the kids from the kitchen. Even though they are all older now, I still stay within cooee because a bump on the head can happen to any age child.
Good luck with your decision.
Wylie.
Hi LifeX,
Had a laugh at your comment about my oldest boy. He can be a smart little punk but he is pretty good generally. He just loves spending money (other than his own, that is).
I had heard that the Windows firewall was not very good and we are (at the moment) well covered. It is just that whatever is on my computer is about to finish and I either have to pay to have it continue or find some freebies. I’ve been told some of the freebies are just as good as the bought ones, hence my question.
I have heard Adaware and Kerio are good but I am a computer dummy really and most people who are computer literate speak in double dutch.
I have no problems now and we are always getting messages about things it has picked up so I feel quite confident now, just not so confident when it runs out.
I totally agree that if we did nothing to protect ourselves we would be stupid. That is why I am getting in now to make sure I do not have even a day without protection.
Appreciate your thoughts, Wylie.
Hi Christian,
Thanks for the help. I will try these freebies. Is there anything else I need. I have heard Ray Shaw (ABC radio computer guru?) talk about Kerio being a good freeby but I think it might be a spyware product and if so, I assume it does the same thing as one of the products you already recommended. I assume as you have recommended them you probably use them.
I find it quite difficult doing this as many times it is assumed I actually know my way around my computer – HA! HA!
I reapply appreciate the help.
Thanks, Wylie
Hi DannyBoi, I post here because I can. Surely you have noticed that not everybody has said SELL, SELL, SELL because it is negatively geared.
We have been reasonably successful investors with all but one of our properties over 27 years being negatively geared. We are not rich but we are comfortable and our retirement is assured (apart from world events which we cannot control).
I am simply trying to advise someone else not to rush in and sell properties just because they are currently negatively geared. Time ensures that one day they will turn positive as long as you can wear the loss and as long as the capital gain makes up for the loss.
Apart from the one house we bought which was positive from day one, each time we have bought we have been negatively geared, and without fail, time ensures they turn positive. We just have to be able to afford to wait.
Quite apart from that, what a boring forum this would be if everyone was just a yes man (or woman). For goodness sake, give everyone the chance to read differing opinions.
Regards Wylie.
It sounds like you are doing well to me. Keep what you have and when you can afford it do it again. Your IPs will go up, your debt will go down and I think you are probably WAY ahead of most 26 year olds.
If it aint broke, don’t fix it.
Regards, Wylie.
Hi,
I depends on why you want to change them to positive geared. Is it a manageable loss each week? Could you do something easy to increase the rent? Could you claim more tax each week rather than wait for the end of the financial year?
We have had negative gearing all our married life (19 years). Sometimes it has been hard, but rents DO go up and payments don’t, so if you can hang in there, I’d recommend you don’t sell. Of course, if you really are in trouble, maybe look at selling one.
We have sold IPs when it has meant a change of lifestyle OR sell an IP. Example, to complete our renovation on our house and repay some private debt, I either went back to work with three small children or we sold an IP. We sold an IP because our main aim in life is a happy family, not to accumulate wealth at the expense of family life.
We each have to make that decision as to which way we want to go. There is no right or wrong, only the way that is right for your particular circumstance.
I suppose my point is, don’t be swayed into believing you have to have positive geared properties to be a success at investing. It is one of many paths to success. If that is the reason you are considering selling both your negative geared IPs, I would say don’t do it. If you hold them long enough without causing you pain, they will be positive one day.
Hope this helps.
Regards, Wylie.
Hi Dazzling,
I am with with camp that says enjoy your kids. My hubby has had two recent opportunities for promotion (one he is considering as I write this). Last time we chose “no” and we will probably choose “no” this time because the extra dollars will mean he cannot come home at 2.30 or 4.00 to kick a ball with the boys. I suppose the promotion would mean maybe $10K extra (haven’t looked into the money as yet) but the job means more time at work. He is in a great position now where he works hard and sometimes late when required and other times I pick him up early for a play or a coffee with me on the verandah. Our life is great at present.
My brother six months ago resigned his $100K pa (roughly) job because all he could see down the track was a heart attack. He has five kids (14 down to 7) and he left before they got up and didn’t see much of them at night. He didn’t do it lightly and he is happy as a pig in mud. He has been doing renos and fix up jobs for our parents’ houses and has just started working for a guy doing landscaping. He’s loving it. The pay is much, much less, but he is much, much more content and happy.
I see him smiling now, something he didn’t do much of for quite a few years.
I say if you are comfortable and can afford it, do it (or at least work towards doing it soon). Like someone else said, you can always go back to the big dollars later.
Good luck with your plans.
Regards, Wylie.
I CHOOSE to be a stay at home mum. I worked for two years after baby number one, and I have been at home since baby number two. To be honest, being at home with a toddler and a baby with a husband who was gone at 7am and two nights a week at uni until 9pm nearly sent me nuts. I was SOOOO lonely and desparate for adult company.
Now with three kids, 16, 13 and 9 I absolutely LOVE being a stay at home mum. I am in no way dependant on my husband’s wage because his money is OUR money. He is not demanding in any way. Our life is good and we are happy – coming up to 19 years married. I have friends who have ventured back to the workforce and it is very hard, unless you want your kids in after school care or trying to kill each other at home on their own. After locking myself in my room after highschool to keep from being bullied by my older brothers, I will not leave my kids to that fate.
I love my life now and wouldn’t change it. I am evolving, however, and don’t know what I will feel like in one, two or five years. I would try to never make such a blanket statement about what women should or should not do with their lives. We are all individuals and all have different needs. I LOVE my time in the day to do what I want to. And no, I don’t watch any soapies.
I figure that I do enough for my hustand and kids and I deserve some ME TIME.
Regards, Wylie.
Hi, not knowing too much about your situation, whether or not you have kids, on reading your post my first thought was why not stay for a while in your IP which you owe very little on (unless I read it wrongly) and buy an IP which will have a big loan – all the interest will be tax deductible.
Each time we have sold an IP we have regretted it later, not to say we would have done differently – we only sold when we had to reduce high debt or to put money into making our own (tax free) PPOR more comfortable for us with three growing boys. But selling has diminished our holding, and after a boom I think “if only we still had that house”. However, I try not to look back and realise that compared to many, we are in a very comfortable position.
We are buy and hold types (generally) and we are negatively geared, which suits us well as our IPs are in high capital growth suburbs and our losses are more than made up in growth. I know this does not suit everyone, but it suits us.
I would try to hang onto your IP. Just my thoughts.
Wylie.
I would assume that many people who contribute to and/or read this forum are interested in appreciating assets. We bought a demo model Nimbus three years ago with three years free servicing thrown in. It is the first “new” car we have ever bought and it was a wrench to pay $31K. We did save about $8K on new price for it having been driven by a salesman for three months, but to us it was new. I love it.
First car was a 1969 Corolla (when I was 17). When we had our first baby (age 28) we needed more than two doors for a capsule, and bought my parents Corona wagon, complete with venetian blinds in the back window. Next was our first air-conditioned car, a newer Corona wagon. By this stage we had three kids and this car just was not big enough. Bought a bigger wagon, first car which cost more than $2K. Paid $15K just before the used car market collapsed about 9 years ago. Traded that in for $1K three years ago.
We just got sick of having cars that cost us money to run as they got older. Our plan is to have this car for ten years or longer. Seven seats is very handy.
It always amazes me that a couple of my friends used to buy a new car every couple of years. I was putting my money into IPs and they thought they were doing well, driving around in flash cars.
Our friends the “Jones” are tossers who have just spent about $130K on two new cars. Jeez, they look way cool in their leather upholstery, and I would love to have the money to spend, but it certainly would not be spent on a lump of metal with wheels. I would use that $130K in a much better way, which I don’t need to spell out to you on this forum.
So, Dazzling, in answer to your question about where are the BMWs and Jags. They are very often driven (not always – don’t want to offend anyone) by those who want to LOOK rich rather than BE rich.
Regards, Wylie
Property Investor magazine did an in depth analysis on this within the last six months or so. Perhaps you could get hold of a back copy.
Hi, whatever steps you advise these people to take, I would suggest that if they have run up $45K in credit card debt they definitely should not look at a line of credit. As to what type of loan they could consolidate into, I’ll leave that to the better qualified people on this forum, but I wonder if it would be possible with no house to offer the banks as security?
First thing they should do is cut up the credit card. I would imagine even an unsecured personal loan would be better than a credit card debt.
I hope they can work through this and that they WANT to get out of this mess enough to change their habits (as opposed to you wanting them to change).
Regards, Wylie
Hi, this “lady” was with a major chain. I don’t want to seem paranoid but I’d hate to get into trouble for naming names here. Also, the chain probably has no idea how bad for their name this particular woman was. Who knows, maybe it is a franchise and she is hurting her own bottom line as well as the company with her bad attitude.
Maybe she had just had a bad day, or her underwear didn’t fit properly. I was especially gobsmacked at her point blank refusal to send someone to measure and quote unless my hubby was home. I thought I had been beamed back to the 1950’s.
I also learnt from when I was 12 years old and worked in my parents shop, that even if you can’t serve some immediately, “I will be with you as soon as I can” goes a long way. Good customer service is pure gold to a business.
I said I would not use that company again, but let’s face it, if the price was right, I would.
Regards, Wylie.
Just remembered the name “419 eater”. This is the site. It makes for some fun reading if you are looking to see the stingers get stung.
Type “419” into Google and you get sites regarding the Nigerian scams. Apparently 419 relates to the section of the law that these scams are breaking, or something like that.
I did find a site once that was run by internet vigilantes who baited these scammers and there are some funny stories there of the scammers being scammed by the baiters.
Regards, Wylie
