Hi Kiwi,

A point of clarification – are you buying the property off the builder directly?

Or are you buying it off a third party who is paying the builder?

There are different potential issues and as such this may be of assistance to the forum. Nonetheless a good solicitor will be of paramount importance to ensure your contract is…[Read more]

Hi Boardy,

As Brahms has said be prepared to do some market research so you know the true value of the property.

Be aware you more than likely won’t get the property at a ‘steal’ as I understand there is a little clause somewhere in the credit code (or similar) that prevents a lending institution from selling at such an undervalued price and…[Read more]

Hi Apples,

I hope you worded the clause a little tighter than that.

Assuming you did then you can go back to the vendor and say ‘it failed the building inspection and as such I won’t be proceeding with the purchase unless’ then either renegotiate the asking price and/or get the vendor to pay for the work to be done.

Handle these discussions…[Read more]

Originally posted by FALCON:

will have a look at thing with a financial advisor although its sounds like i need to raise a bit more equity first.

Hi Falcon,

You are better off speaking to a broker – they are familiar with varying products and options that will suit your circumstances from a ‘borrowing’ perspective.

My experience with…[Read more]

Hi Kay,

Would be interested in the Gottliebsen article – can you provide the link as you have inadvertently repeated the Jenman link.

Ta muchly.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

HI PK,

Property & Strata managers I work with have no difficulty working with each other.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

See a broker (there are a few around here) who will find a lender to suit your situation. There are a range of low doc and no doc products and options available for people in your situation.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Falcon,

In general terms lenders will only lend to 80% of te value of the purchase. You, as the buyer, have to find the other 20% + costs.

This can either be done using cash (not recommended) or a line of credit set up against the value of an existing property.

Eg you own a property worth $200K with a debt of $100K. The bank will recognise…[Read more]

Originally posted by Baloo:
I believe that they are only liable for the outstanding rent as long as the asking price is the same. If they pay $200 per week now, you can ask them to pay the remaining rent/advertising costs as long as you are advertising for the same amount or less.

Hi Baloo,

In WA the same law applies – a tenant breaks a lease…[Read more]

Originally posted by Baloo:

No, I was stating that I assumed that the mgmt (Admins, Moderators) of this site were infact CF+ investors.
[/quote]

Hi Baloo,

I speak as a moderator and there is no cashflow investor here – I guess what I bring (in my eyes anyway) is a reasonable open mind to different investment strategies and some general…[Read more]

Hi Jarred,

Everything seems too hard in the beginning – ever watched a baby try to walk for the first time?

Having a desposit is one of the hardest first steps to accomplish – the temptations of life and the apparent slowly growing deposit can be a little disheartening in the beginning – you are well and truly ahead of the bulk of the population…[Read more]

Hi Elika,

I like the definition Margaret Lomas uses – ultimately there is a bit of a little personal slant people put on the terms.

Positively geared – income exceeds all costs including rates, taxes, interest, repairs, body corporate (if appropriate), insurance, management fees and so on. Depreciation allowances are not required to provide a…[Read more]

Originally posted by MortgageHunter:
Can you change immediately and pay her the equivalent of three months fees? Is this an option?

Hi Simon,

This is also part of the standard agreement and based on Milly’s ‘3 month’ comment in the first post it is highly likely this clause remains – but – as you said pay the three month fees and cut your…[Read more]

Originally posted by AusProp:

surely if you hadn’t cliamed it you would just adjust your returns to cliam it = 100% claim for the depreciation and only 50% assessed on the CGT. so it should all be good news?

Hi John,

Sounds good in theory but you are only entitled to back date your last four tax returns whereas CGT can be calculated over a…[Read more]

Originally posted by Milly:
Three months notice you have to give.

Hi Milly,

The three months is a standard clause in the Queensland REA management agreement paperwork but there is a little clause that says the notice of termination can be 30 days if agreed to – won’t help a lot now but it is worth remembering for next time.

On the subject at…[Read more]

Originally posted by redwing:

PS- Derek, it was my Clarkson IP, pretty steep, i thought.

Must be the outer limits who have a misconstrued opinion of their worth.

One Rockingham agent thought 9.5% of gross rental income (yes you read that correctly) was a fair letting fee. Needless to say I didn’t continue our…[Read more]

Originally posted by depreciator:

Now, here’s something surprising. Apparently if a property was purchased post May 13, 1997, and it is eligible for depreciation on the building, the amount of depreciation that could have been claimed has to be deducted from the cost base upon sale for CGT calculations even if it hasn’t been claimed.

Hi…[Read more]

HI Diane,

The lender will also consider your ability to service the loan by looking at your income level, which includes your rental income. Some banks only recognise around 75% of rental income whereas HSBC, for example will accept 100%.

A good broker will be worth their weight in gold at this stage of proceedings as different lenders have…[Read more]

HI Nathan,

Here is the link GP was referring to.

https://www.propertyinvesting.com/forum/topic/10172.html

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Old Bat,

Retirement homes/villages tend to be more suited for the asset rish investor who is only chasing cashflow.

Many lenders get a little nervous about retirement villages and as such you may well need to put in more than standard (20% w/o LMI) residential deposits. Most lenders are currently reluctant to allow these properties to be used…[Read more]