I really love it when the tenant redecorates to their taste. Pity is there will be no requirement for the tenant to reinstate the property to its previous condition ie painting over that red gloss wall or the like.As for other changes, the LL will pay the whole of the lease prep cost (ie another $15 out of your pocket, on top of the GST c…[Read more]

Simple question Ilonka. If you can't afford a mortgage of say $200,000 to one bank, how does having 2 mortgages of $100,000 each change the situtation other than putting the risk of losing the investment onto your investment partner/second mortgagee?

The appearance of the building is a good indicator, a well kept building would tend to indicate that the owners do look after the place (or it was excetptionally well built). A healthy sinking fund & admin fund tend to show good income & expenditure with no delinquent debts, no outstanding special levies or unpalatable levies in the minutes of the…[Read more]

Push your solicitor to insist on VP & don't settle until vp is provided.

Brick? Asbestos/Fibro? Timber? Brick Veneer? Size/area m2? Requirements to separate different types of material? Ease of AccessGive a couple of demolishers a call once you know the above, they should be able to bounce a number back to you almost instantly.

Are there any outstanding issues with the dept of fair trading – check their website or give them a call. If there are no issues reported to DFT then the issues cannot have been major.

To clarify Richard's point, the mortgagee engages a valuer to determine how much they should lend against the security (your IP) in case of default and based on the banks experience it will issue instructions to its valuer accordingly. There is no contract or other relationship between you and the bank's valuer and the valuer has been engaged to…[Read more]

Handyman doesn't need to be licenced if it total cost is below $1k (or some small number).

You've got over $100k of equity, say $80k if you are avoiding LMI. New loan of $340k shouldn't be too big an ask if the financier is aware of the rental scenario.

You will find that there is an obligation on the owner to keep the property to a particular standard (same as all of the other rooms), this may be managed by the resort manager or they may require you to do it (generally done by resort though). You will find that you are sticking your hand in your pocket quite often eg cleaning, linen supply,…[Read more]

Generally you will find that resort management will have the sole letting & management rights ie you cannot independently lease the unit. There are 2 types of return – pooled, whereby you have a set % of the income & expenses or income and expenditure is based upon your unit solely (then you will need to ensure that there is an equitable…[Read more]

Change the locks, tonight!!!1

You'd want to have a deed in place to  retain ownership (of your contribution) diminishing over the term of the lease hence decreasing the risk of the tenant removing 'your' fixtures.

What is the incentive for an agent to achieve $20k above asking if they are not getting a % reflective of the additional work required achieve that higher price? Basically, all a fixed-fee agent will do is achieve the minimum price set by the owner, nothing more.

Visit the property section in your TAFE bookshop or library – great source of info.Depreciation – yes it is applicable. Depending upon incentives, lessor contributions to fitout etc you may be able to claim more ie over the life of the tenancy rather than building life.Functional obsolescence – watch out for buildings which may require massive…[Read more]

What's inside about it? The building has a sinking fund which is set aside to finance the cost, the minutes of the AGM reflect how the money is to be spent, part of the purchase price is the value of the unit's share of the SF (which will be depleted when the works are done), the purchaser of the unit will have the liability for any special levies…[Read more]

mattnz wrote:
Typically in commercial property there are no outgoings. The contract with the tenant will almost always state that they must pay for them (as long as you have a tenant of course).

There are both gross and net leases. Matt refers to net leases (which are the figures that you must use to calculate your return when comparing…[Read more]

'Commercial' is a pretty wide field when it covers retail, industrial & office space, each having its own metrics and risk profile. Return varies even around the country for similar property. Any more specifics?

All the more reason to be bargaining downwards and moving away from your original offer.

When the market is quiet….It could be properties which failed to sell at auction prior to Christmas (so have been on the market for 4  weeks + the holiday period) it could be those which have sat around over winter.