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Hi Azalia, just a thought, if you renovated NOW before the tenant moves in you will be able to claim depreciation on those renovations, likely improving your cash flow during the period you own the property. As Benny mentioned, you would also likely benefit from higher rent.
The timing may not be right for you, but it may be something to consider if it can be done.Hi all. Soft landscaping (turf/trees/dirt etc) is not depreciable. Now, can it be claimed by your accountant as repairs/maintenance etc.? No idea.
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This reply was modified 9 years, 4 months ago by
Ryan_vs.
Roberto, it's actually quite possible that the agent is being honest in this case. It's not uncommon for a high offer to be put forward that the owner accepts, only for the sale to fall through. From the owners perspective they think, it's obviously worth what they're asking,
True the agent may be trying to justify in your mind that the asking price is worth it due to a previous offer, but that's the Agents job. That said, the way you worded the above is that the vendor wants that price, and the agent is simply following instructions.
If it is a ploy, it's not a very good one anyway.
As mentioned by previous members, do your research, and offer what you feel it is worth. If the owner doesn't budge, move on.
How do you know the lease is about to expire?
In most states, if the agent introduced you to the property, even if you purchase it once the agreement has expired and no longer listed, the owner is still liable to pay the agent commission.
According to http://www.consumer.vic.gov.au/, "…Do not sign anything, including a sales authority, unless you are prepared to engage the services of that agent. You do not have a cooling-off period (time to change your mind) after signing a sales authority."
Not sure what you could do legally.
At the end of the day, I guess you could just not allow the agent to show anyone through. He will get the hint eventually.
That rule is applicable to the original construction only (div 43), you will still be able to claim the fixtures and fittings (div 40) regardless of age as they get revalued, so to speak, upon settlement and their depreciable lives restart. Check with council maybe on the construction date. Or better yet, most QS companies can do a 'search' for you to determine the age.
One thing I would look at is if your first purchase will later become an investment, than it can become difficult to look at your purchase objectively. What I mean is, you may miss out on a great investment with solid returns, because you couldn’t see yourself living there for whatever reason. Alternatively, you may find a property that you love and feel’s like home, but it may make a lousy rental. Can be hard to get the best of both worlds. But as the others said, hard to give advice without knowing the full situation
Also, I remember after a deposit was paid to us the Admin girls would prepare/post a letter to the vendor advising the amount in trust. Similar documentation was also provided to each parties conveyancer/solicitor
Generally speaking, (in NSW anyway) deposits are held in trust with the estate agents. if there is a deposit they should be able to produce trust account receipts as proof. There should be no reason this cannot be shown.
No problems, jasedc5r
The deposit isn’t entirly necessary when offering to be honest, It is a must to exchange the contracts though.
To be honest, during the offer stage the deposit is more so a sign of ‘commitment’ so to speak, a show that the offer is genuine.
It’s pretty powerfull as an agent visiting a vendor with a signed contract and a $25000 deposit cheque.
If your agent requires a deposit cheque, humour him/her, it is refundable if you dont exchange contracts, so it’s nothing to lose. its just more so just a token gesture during the offer stage.
Oh, most of what is say is NSW legislation by the way, not sure of other states.Hi Mate, long time lurker, first time poster.
To answer your questions;
Not sure why you need a holding deposit to even place an offer? sometimes deposits are placed at the offer stage, but not sure why before?
Anyway, firstly beware of holding deposits as the name is a little deceitfull.
I’m an ex estate agent from NSW, and a holding deposit does not guarantee you the property in the event that an offer is accepted, you can still be out bid, so to speak. All it means is that if a higher offer comes in that the vendor accepts then the agent MUST make you aware of it, thus giving you an opportunity to up your offer.
Remember only an exchange of contracts secures you the property
Yes the deposit is 100% refundable prior to exchanging contracts, you will lose 0.25% if you pull out during the cooling off period, and the total deposit if pulling out after the cooling off period has expired (usually 10%, sometimes 5%, not uncommon)
Yes add in conditions to your offer; P&B, requested deposit amounts etc.
If you have finance approved mention this, help make the offer more legitimate.
Remember negotiations are give and take, you conditions seem fine, but don’t let a sale fall over, over something small (eg vendor request 35 day settlement, no 30 etc)
Hope this helps-
This reply was modified 9 years, 4 months ago by
