Not alone but definitely the first.The question now remains, did they cut their rates too much with all of the exuberance of the Reserve?

Do you intend to live in the house that you want to build? If so, any borrowings that you make for it are not deductible.

The residex will give you some idea of prices paid however if there have been no recent sales, you may have to go back further or widen your search eg next town (if country)/suburb, other blocks of units.There is no simple comparison between units and duplexes/semis as the zonings & allowable development are quite different.

Thx Crosby, I noticed an article in May 09 Money Magazine hence the interest in the tax free status as well as trying to get a little creative in using the bond in lieu of a deposit (ie alternative security).

Richard, would you consider that as cross collateralisation? Or would you suggest that PS have a LOC against his house for the deposit & out of pocket expenses?

If the vendor spent $100k on it, what did they do? It doesn't sound like they did much if there is still the old wiring & cracks reappearing. I would research what other similar properties have sold for in the area. Older properties and those in beachside suburbs require more maintenance than other houses – sea spray tends to affect all surfaces,…[Read more]

Eddie, you might also consider a part-time job (in your field if possible/depending upon your study load) to show the bank that you do have some income and a good savings record when working.

It may be a shade difficult Eddie. 1) financier wants to you that you have the capacity to pay the mortgage – will the rent cover the mortgage, insurance & other outgoings?2) Without other income, you would most likely need your parents to go guarantors (thus putting their assets on the line if you default) 3) Where are you living (at home/share…[Read more]

I wouldn't be putting a a balustrade myself unless I knew what I was doing. If you don't get it put up correctly (ie to meet the AS 1170.1 2002), if it doesn't comply you are likely to be sued.I was aware of a case a few years ago where a timber staircase failed some 30 years after construction however since the builder and architect were still…[Read more]

To the opposite end of the spectrum, what if a FHB buys the home for cash?

Rhys, my contacts tend to be Sydney centric. Unfortunately some of my contacts (like railex & new era balustrading) don't go that extra mile. Doing your research does involve google, yellow pages, word of mouth, vcat (and my little black book) etc.

Timber as you have described it probably will not meet the current code so you wouldn't find anyone who would be able to certify it as complying with the Aust Standards.Look up balustrading in the yellow pages.

Blogs, it is the market which determines remuneration not the vendor, that's why it is called negotiation. In life everything's negotiable.Getting back to coffee, I know plenty of coffee operators who have turnovers in excess of $1M pa, you need it to survive in a regional shopping centre and yes they pull out their $120k+ even when their premises…[Read more]

Nitro, lease prep is normally a shared cost & it is regulated by office of fair trading (NSW) – you are acting as the sub-lessor, so you would pay around $15 + 2x $1.50 gst (government logic is that the tenant shouldn't be liable for the gst so you would pay it for both parties). Advertising – depends where & how often but expect at least…[Read more]

We don't haggle over the price of a capuccino with a gross profit of 75% why bother with agents? (you'd probably spend just as much on your twice daily caps over a couple of years as you would with your agent).

http://www.builderlink.com.au/authorised_builders.html

No. Everyone's cost of borrowing is different – neither finance nor tax/depreciation enter the equation.You should be working with net yield not gross that way you can compare different asset classes/investments ie how would you compare a share returning 5% capital growth & 4% dividends (fully franked) with the property example above? Very…[Read more]

Blogs, you're dreaming….. Agents working for the vendor also charge a % of the sale price. Do you attack them for not working solely for you when you come to sell? Do you always multi-list your sales? Do you rely on the agent to recommend the best method for selling your property (auction/private treaty/EOI/tender)? Do you have an open agency…[Read more]

Have you tried any of the pro-bono lawyers? They cost you nothing and take their fee out of whatever they win eg Keddies but they have had some bad press?

Development work at sub-25%, not worth the risk. Faced with a project which has kicked off about 2 years ago, rising interest rates (now a reversal), a price correction in the market of 20+% and slowing demand, they would be out the back door by at least 6%.