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Thanks everyone for their replies. The unit is in my name only. If we rent then we can claim a lot of the rent on tax as hubby runs a business from home. I do like the idea of owning my own home though – I just think that buying our own home would be a more expensive option at this stage. Am also not too keen to sell the unit at this stage as we don’t have a massive amount of equity in it. I would rather keep it and use the equity. Thanks again.
Julie
Property Conveyancer
MelbourneMarc
The funds we hold in the bank are in a mortgage offset account against our existing mortgage. Thanks for the tips though. I don’t want to inject the cash into the mortgage directly at this stage until we decide what our next step is. Thanks for your advice. I guess our next job is to find an investment property. Thanks again.
Julie
Julie
Property Conveyancer
MelbourneI’m not sure now would be a good time to invest in Perth as it has just hit the peak of a boom I think. I could be wrong but this is what I’m reading. Properties increase 30% plus last year. I don’t think there will be a lot of growth there in the short term.
Julie
Property Conveyancer
MelbourneOriginally posted by Bradleyvonx:My two second rule is take away the three zeros at the end, double the amount and that is the rent the property should be earning to be cash flow positive, it works and is faster than the 11 second rule.
By the way there are still cash flow properties out there.What figure do you subtract the zeros from. Am confused. Sorry – am new to all this aswell.
Julie
Property Conveyancer
MelbourneOriginally posted by Bradleyvonx:My two second rule is take away the three zeros at the end, double the amount and that is the rent the property should be earning to be cash flow positive, it works and is faster than the 11 second rule.
By the way there are still cash flow properties out there.What figure do you subtract the zeros from. Am confused. Sorry – am new to all this aswell.
Julie
Property Conveyancer
MelbourneIs it for a bathroom? We are using http://www.bathroomwerx.com.au. They recently did our friend’s bathroom and it looks awesome.
Julie
Property Conveyancer
MelbourneAny arrears will be paid by the vendor/mortgagee. Your solicitor should ensure that he/she receives cheques at settlement to cover these arrears.
Julie
Property Conveyancer
MelbourneIn Victoria it is quite common for a 10% deposit to be paid. I am originally from WA and I know there that you can get away with only paying $500 or so. If you sell a property and the purchaser pulls out prior to settlement (after the contract becomes unconditional) then you can keep the 10% to cover all costs, incluidng legal and commission. Given the agent’s commission is only about 2.5% the remaining deposit should be sufficient to cover any other loss.
Julie
Property Conveyancer
MelbourneThe deposit is initially paid to the agent, and is only released to the vendor once your solicitor or conveyancer is satisfied with the following:
1. The answers to requisitions on title are satisfactory.
2. The Contract of Sale is unconditional (ie. not subject to finance or building inspection).
3. There is sufficient equity in the vendor’s mortgage for the deposit to be released to the vendor (ie. it’s not required to pay out the mortgage).
4. He/she is satisfied with the results of all searches and enquiries.
The vendor’s solicitor will serve a request on the purchaser’s solicitor asking for the purchaser’s consent to the release of the deposit. The purchaser’s solicitor has 28 days to give a reasonable objection.
I hope this helps.
Julie
Property Conveyancer
MelbourneYou didn’t find they came out too think from the wall then? That’s an interesting idea.
Julie
Property Conveyancer
MelbourneDr X – where are you located? Can you recommend anyone in Melbourne?
Julie
Property Conveyancer
Melbournewe’ve decided to get a quote to get the bathroom re-enamelled.
Sounds great. Although perhaps rose pink wasn’t the best description. My husband describes it as a sick candy floss pink. Hmmm. It’s givng me nightmares trying to work out what to do.
I don’t think you would achieve as much growth with a unit but you may get good rental return if you find a good buy. Are you looking for immediately return or capital gain?
I agree with Elka. Go the loan off set accounts. If you decide to use these funds later to buy your own place or spend on anything else which is not tax deductible, you are better off tax wise to just redraw the funds from the offset account than from the mortgage. We live in our place atm but intend to rent it out sooner or later – so any extra cash we have we put into an offset account and just save away in that account for a deposit for our own home -but at the same time we’re reducing the interest on our current unit. Hope that makes sense.
I’m a conveyancer!! [biggrin] Feel free to pm me if you have any questions!!
Hi Enjo Lady
I just wondered if you could share where abouts you managed to find a property for 75K returning $150 pw. That sounds great.
