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I remember reading somewhere that the rental affordability scheme isnt for private investors. Is that true?
Also, what exactly determines "new"? Does that mean brand new houses only? Or a newly purchased/rented property?
Some parts of Sunshine seems to be pretty bad for movement of the slab. A fair few properties which I have looked at in the area has had significant amounts of cracking caused by a subsidance. I recently put in an offer on a property but when my building inspector checked it out he mentioned that the foundation had moved that much that it needed approx $150K worth of underpinning to be performed on the whole building. This of course would have been covered by owners corp (body corp) but the bill would have had to been split by all title owners.
I personally would see if you can get a quick estimate on how much the underpinning will cost and work out if its worth you keeping the property. The worse it gets, the harder its going to be to sell in the future. Of course if its only gong to cost you a small amount of money then it woudl definately be worth getting looked at and keeping the property. You really have to work out the costs and see what works out best.
Thanks guys.
What if I waited for the lease to end and the tenants to move out and then performed the repairs to the shower and vanity unit (not do any other renovations such as tiling etc)? Would that be classified as a repair to bring the bathroom back to a decent rentable condition?
Im still tossing up ideas at the moment but will keep all the above comments in mind.
Thanks again.
PS. After all it is tax deductible if you go ahead with the purchase. And if you dont, well consider yourself spending a few hundred dollars which could have saved you thousands.
I personally would get a inspection done just for piece of mind. Last month I put an offer in on a unit which was accepted. I wasnt gonna bother doing a pest or building inspection but ended up doing one for piece of mine. Turns out there was some very major structural damage to the unit complex with up to $150K worth of repairs to be carried out. OF course these costs woudl have been spread out over all owners being body corp but still would have meant some large costs for each person. If I didnt do the inspection, I wouldnt have known that there was this much damage to the building.
Thanks for all the input guys. I sent through the paperwork via express mail today so hopefully the bank processes the top up in time so I dont have to worry about this. If they dont then I may have to borrow all the funds from someone else as suggested and then repay them once the top up is processed to ensure that it is all tax deductible.
Thanks again.
Hey Jen,
I guess it all depends on your situation. If you had any non deductible debt such as a PPOR or credit card bills I would pay that first. If there is no other debts besides your current IP's then I would personally put the money in an offset account. That way you can reduce the interest you are paying on your IP but still have the cash available if/when your ready to buy another IP.
Yep the funds would be used for investment purposed, but whe I get the funds from the laon extension they will be going to someone else and back to my offset account to replace the money I borrowed from someone else and my offset account to pay for the deposit. Is this still classified as investment purposes?
Thanks Joseph.
Thanks for the input guys. Looks like it could have been crap that the agent was talking. I put in a lower off and it was accepted. If only there were more agents out there like you Bill.
Thanks for the input guys. Much appreciated.
Thanks guys. Well turns out pest inspection came back good however building inspection wasnt so great. Ive been told that the building is sinking 2-3inches on one side and will cost approx 120-150K to underpin. This should be covered under body corp which will be split by 26 people meaning 5-6K each. Due to this movement there is a fair bit of cracking in the kitchen and bathroom which needs to be repaired. What would you guys do in this situation? Ask for the vendors to drop the price 6K +? Other sugeestions?
Anyone have any suggestions for a good PM in the Sunshine area?
You will get the rate at the time of settlement unless you paid the additional "rate lock" fee which will give you the rate at the time of signing.
0.85% off $300K is good going. Congrats.
Would also love to hear what others who have recently taken out loans are getting.
Thanks Richard, much appreciated. I just sent you an email.
Thanks guys. Much appreciated.
Thanks guys. One more question, how does the LMI work then with LOC? For example, I currently have the IP worth 280K with a 204K balance on just a standard variable loan. If I had to take out a LOC which had a limit of 48K (assuming that is 90% LVR) but I only draw down say 15K (for the moment) which means the LVR is under 80% do I still get charged the LMI since the limit of the LOC is above 80% LVR? Or do I get charged LMI once I draw down more then the 80% LVR? Would the LMI get added to the variable loan balance or LOC?
