Forum Replies Created
Hi there
we have just been through the process of changing a short term rental to a permanent rental. The reasons being the building management changed and they were trying to minimize our use of the property to the extent it wasn't worthwhile doing any more.Having a permanent rental is better from a cashflow point of view as the holiday letting – whilst lucrative – you end up paying a greater proportion for the ongoing expenses – we were ending up paying 20% in every dollar toward expenses – and there was still an exit clean and linen of approximately $300 per month to pay. There were some months where there was very little income – which becomes a problem with the bigger bills coming in regularly.
You will obviously have to do the due diligence to see whether having the property close to the beach will be good from a capital growth perspective as it doesn't seem attractive from a cashflow perspective
thanks
Hi there
yes it is normal
if you look at your adjustments there is a total payable to the vendor/their bank
they then nominate how they want cheques to be drawn
they will often state the vendor/bank, the vendors solicitor and if there are rates, the council etc
the figures should all balance – and if not speak to your solicitor
thanksHi WW
for perhaps a more extensive explanation of what your solicitor should do for you – look at the conveyancing protocol in the state where you are buying.
You as the buyer are looking at your property – from perhaps an emotional perspective – imaging your furniture in the property etc
You do need the items mentioned by Jon above – if you are lending money – you need to sort out your finances and you do want to be sure the property you are buying is structurally sound – hence the building and pest reports
What the solicitors do is help you investigate the title to the property – and make sure it can be transferred to you without any problems – this does require making inquiries of Government departments who may have an interest in your property – also local Councils whose planning laws may affect your property. Your solicitor will also explain the mortgage documents to you and your commitments to your lender.
Where a solicitor could help is where – for example – there are unapproved structures on the property. You may elect to buy the property as is – or get those structures approved or perhaps reduce the purchase price because of the difficulties in getting approvals down the track. These sort of issues would need to be addressed in the contract if you have concerns.
If there is something not quite right – for example the fence is in the wrong place – once again your solicitor can advise you and assist you with options.
Anyway – look at the conveyancing protocols for more info.
thanksHi there
as a Legal Costs Consultant, I see the litigation files of many parties where there has been a dispute over property transactions – it may be the purchaser has decided they don't want to purchase the property and want an out – or there may be problems about inclusions in the contract which have not been delivered on settlement.
A solicitor – if consulted early may be able to anticipate some potential problems – because they are objective – and may have had experiences that a buyer – who may only have ever bought one property – hasn't had the opportunity to develop.There have been times when advice has been given which may lead to a different track being taken (particularly with finance options, guarantees etc) – it is a security measure and often won't be needed – but even I like to touch base with colleagues in the profession if I am concerned about issues.
thanksHi there
I have had something similar happen with a re finance where the solicitor/conveyancer for the bank stuffed up and as a result I didn't have my money for 7 days.
I did jump up and down and they waived the interest payable for that period.I do think it is worth complaining that the mistake has cost you money – specify it and require it to be deducted from any money you owe to the conveyancer.
If you still have problems – complain to your law society because you shouldn't have to wear the consequences of the conveyancer's error (assuming you did give the correct particulars to them for the cheque)
thanksHI there
I think you really need to speak to whoever audits your fund – to see how they interpret this.thanks
http://law.ato.gov.au/atolaw/view.htm?DocID=DSF%2FSMSFR2007D2%2FNAT%2FATO%2F00003
please review the above link in answer to your queries
thanksHi there
you will need to get proper advice from a superannuation specialist but this smells like a scheme to circumvent the rules for SMSF funds not lending to a related party
you will probably have problems with the sole purpose test – where the scheme is considered in totality
thankshttp://www.somersoft.com/forums/showthread.php?t=36546&highlight=nominee
HI there
you may like to look at the above link as the issue was discussed.It does sound as if the advice you are receiving will avoid double stamp duty – despite the costs
thanks
Hi there
it is usual for you to have to pay the bank's solicitor's fees as part of the loan details – it should have been disclosed in any credit fees and charges.
Their fees may include the costs of stamp duty for a mortgage – but if you are in doubt about whether they have charged you properly – contact a legal costs consultant in your state.
If you are in QLD – you can PM me as I can probably give you an idea if there has been an overcharge
thanksHi there
there is no website as such but you may want to consider some of the DIY packages which would help you through the process.
Sorry can't recommend any because I don't usually use them.
If you are using real estate agent to sell your property – they will prepare any contract for you.
If you have a mortgage on the land you will need to liaise with your bank to discharge the mortgage (get in early with this – as it is the major cause of delays for a settlement)
The Buyer normally prepares the Transfer of Land so the only thing you really need to do is check any settlement figures sent to you and make sure your bank is ready to settle.
Hope that helpsHi there
there are a lot of factors to consider to advise you if you will have any success in recovering the money owed to you.Your first stop will be your solicitor who will normally undertake a search with respect to the company director to see whether there will be any money at the end of the day to recover – often proceedings don't even start if it is evident there will be no money at the end of the day.
Another option would be to consider if you have insurance to cover this situation – as you may be able to recover – and the insurance company then chases the tenant to recover their expenses.
I do think you need to be given informed advice from a solicitor
thanks
HI there
you will have to clarify what your goals are – are you aiming for capital gain – then perhaps the house would be the better option (given the land content) -are you going for yield – then the unit may be the better option.
If you are fairly young then perhaps looking for capital gain is the go – and if you are on a reasonble defence salary then you can probably wear some negative gearing.
thanksHi there when you do the final inspection you are checking that what you are buying corresponds with the contract.
I once acted for a couple who had purchased a home with some beautiful leadlighting in windows – they went back to check before settlement and the leadlighting had been removed. There was obviously problems with the settlement thereafter which was finally resolved by a reduction in the sale price (as the leadlighting was on a ship back to England).
Other things to check are items like TV antennas if that was part of your contract. Dishwashers etc
As to checking that everything worked, did you check any of that sort of thing previously and did your building inspector also check things? You normally have to have things in a reasonable condition during the contract period and no drastic deterioration. Thats what you should be checking.
thanksHi there
why not contact your council and see whether the property can be strata applied, contact a surveyor to check out the costs involved and than contact a body corporate manager to find out the costs of lodging documents at the titles office and the ongoing costs of running a body corporate.Unfortunately there is no ball park cause all of these things are variables. There are people who do value add by this process
thanks
Hi there
just in relation to your comments about Torrens title – that is the name of the system of registration rather than a separate title category
as to whether you can strata or community title – I would think you do need to know Council requirements for the size of the area which can be strata titled – and if you are proposing to do a duplex I would think this is the appropriate title to be inquiring about
community title is more for bigger developments which may also have different levels that need to be considered
As it is not clear what state you are inquiring in, you do need to comply with zoning requirements in your area (as to whether you can have two dwellings on the same block of land). If you are not sure, talk to a solicitor/conveyancer in your area.
thanksHi there
your solicitor/conveyancer would be doing some inquiries (i.e. inquiry with Council) which would lead to finding out those details.
Often the buyer's solicitor puts forward their proposed adjustments then the vendor's solicitor says how he wants the cheques to be drawn.
Why not contact your conveyancer and see what details they have?Hi there
If you are buying as an owner occupier – I agree that Toowoomba is good value – not so good as an investor. I have had to recently drop rentals to get tenants into properties and with the continued land developments in the area – there definately is an oversupply.
The water issue is definately a concern but wouldn't have caused people to leave town – all it means is everyone is buying water tanks – and every new development has to address the water issue.
We are definately looking elsewhere for our next investment and are looking particularly around the Sunshine Coast
thanksHi there
I think it best you consult with a solicitor to draw up a loan agreement between you and your son – that will give you a contractual right to lodge a Caveat – which will need to be stamped with mortgage duty (if your state has mortgage duty) – and once stamped can be lodged over your son's title.
Just be aware that if your son has an existing mortgagee – there may need to be some negotiation with that party as sometimes lodging a Caveat can be a default under mortgage documents which can cause your son problems with his financier – it may be worth having your solicitor consult with any mortgagee prior to lodging documents.
Another option may be to have all documents drawn up necessary to lodge on title if it becomes necessary –
thanksHi there
if the other party signed the contract of sale – you do have an understanding in writing which the RTA could refer to – you also have part performance if a bond has been paid and some rent has been paid.
You may not actually need a solicitor if your real estate agent is on the ball and has done these sort of evictions before.
It is a pain in the backside – but if you have landlord insurance – you may be able to claim on your insurance for the unpaid rent and have your insurance company chase the tenant for money.
thanks
