Forum Replies Created
- fishngym wrote:
…Are you suggesting that as I am not the owner yet, technically I shouldn't be permitted to take out an insurance policy on a property that is not yet owned by me?
…The seller seems to be quite a reasonable bloke, so we're not going to jump up and down. …
Further to your comments mate. We have been curious about this question.
The current tenant moves out 6 days before settlement. A new tenant is moving in immediately for a 12 month lease. The real estate agents receive one weeks rent ($500) as the letting fee. This lease commences during the period in which it is owned by the seller.
Does this mean that the seller will receive 6/7 of the first weeks rent, and 6/7 of the letting fee? Or is the letting fee our responsibility?
1 – As the property has not transferred, you do not own it (yet). Typical example would be if the contract was void or invalid due to misrepresentation etc eg advertised as a 4 bedroom brick house with pool and it was a 2 bdm unit. (A bit extreme but obvious).
2 – Sellers are always reasonable people (until you ask them to do something)
3 – However, your only remedy if the house is damaged prior to settlement is not to settle (you may get a binding undertaking that works will be completed/restored but also withhold $$).
4 – As to the lease, who has engaged the agent? If you have, then you will be liable for payment of the agent's fee. If the vendor has engaged the agent then it will be the vendor's liability (however as you are going to benefit from it you can go easy on this point). If no-one has engaged the agent, then they are not entitled to payment.
5 – Vendor is entitled to the rent up to the time of settlement (hence also liable for damage).
6 – You will need to sign an agency agreement with the agent if they are to manage the property on your behalf .
SNM
The value will be greatly determined by the conditions of the lease eg term remaining, lessor rights to terminate, lessor right to approve structures & alterations, requirement to remove improvements, right for assignment of lease etc. You will need to do your research to ascertain the company's plans for expansion etc.
What are you buying right to use vacant land or land with a building?
If all else fails use a quantity surveyor – at least the ATO won't question the submission.
DamienO wrote:DamienO wrote:http://www.rentmaster.info/ – thanks looks interesting. In my opinion, a company offering a free trial is always a good sign.I have done some more in depth investigation into Rentmaster.info and have found it isn't property management software after all. It is in fact software for small party and event rental businesses. Companies that maintain a inventory of party or event equipment that can be rented out.
You've picked the wrong website: www.rentmaster.co.nz/
This is a property management specific software package.
Friend is probably being charged at the penalty interest rate (if one applies) for having been in breach of his repayment conditions. As Terry points out – get advice ASAP.
Try the council website – In NSW many councils have their LEP's, zoning maps and any draft LEP on display. Google the LGA and draft LEP may also give you some results, contact the council town planner.
Technically, the place may have been abandoned. There are specific regs covering abandonment including being able to take out the tenant's possessions and to put them into storage. The agent is not doing their job as they are not mitigating your losses.
Landlord insurance surely covers lost rent on continuing agreements (ie expired leases).
You won't need a letter from your REA, if you have an Agency Agreement which has not been terminated then this is sufficient to prove that the property is 'for sale' (unless you have given the agent instructions not to advertise and take it out of their window).
As long as you have not taken possession of the property, the vendor remains in possession. If the vendor has leased out the property, he still remains in possession as you have no contract with the tenant. It is the vendor's right to grant a tenancy to another yet he remains the owner as the ownership of the house does not pass to the tenant, only the right to occupy.
The expectation would be that the vendor has effected insurance over the premises and is to keep those insurances current until settlement. If the house is not insured, firstly there may be a breach of contract (for not having insurances in place), secondly you should be able to reduce the sale cost by the amount of repairs required however you cannot profit from the situation (equitable remedy). If you have insured the property, technically you may have an insurable interest however as you do not own the property yet, it can be argued (and I agree with your insurer) you do not have a right to coverage.
CA, CPA or NIA would largely depend upon the direction you intend with your career and how you want to grow. As Steve pointed out, you won't necessarily stay in a role which utilises all of your knowledge (eg audit, management a/c, financial a/c etc) however you will use a great deal of the skills that you acquire along the way.
To answer your other question what is the pay difference between a CFO & a CEO – depends where you work.
Without knowing what state you are in, the type of contract that you have signed or the penalty clauses it is difficult to comment.
2 options – contract of sale (for a nominal amount), although your mum will be up for capital gains tax on the market value (if this is not her PPOR)
Gift the property to your brother & yourself – same issue.It does raise the question of whether your mother would then be seen as having disposed of assets in order to recieve a pension (so transferring at market value may become a consideration, with some of the money being gifted back).
Other issues include that if you wish to negative gear, you have no loan for the purchase so you will not have many deductible expenses, when you come to sell you may have to pay hefty capital gains tax if you have bought/recieved the property at a huge discount.
Remember when you are comparing returns you should consider net returns excluding the cost of finance and tax so that you can compare other asset classes eg shares.
You need to get your tenants to note on the direct deposit who it was from, otherwise there is no way of keeping up with it (especially if you have a few tenants paying the same amounts). Rentmaster can upload your bankstatements but I am not sure what it does to incorporate payments against tenants (most don't have that feature).
Also note that in some states you must nominate the purchaser at the time of signing the contract ie Joe Blow & Peta Blow or Smith &Weston Family Trust you cannot leave it open or have 'or nominee' .
1 – if you take money of your PPOR, then these funds are for investment and may be deductible – absolutely nothing wrong with using existing capital for investment
The issue becomes if you then borrow (refinance) to pay back your house – this is nondeductible finance. You may need to consider parking some of the money paid on the IP in an offset so that when you refinance, you can use the money in the offset account without drawing any attention.
That is a body corporate issue – you will need to check whether this has been raised with body corporate/strata manager. In nsw unit builders are not required to have warranty insurance (just need to check http://www.fairtrading.nsw.gov.au ) – if the building is more than 7 yrs old then you wouldn't be able to have a claim.
For what it's worth, SEPP5 developments (NSW – over 55's) are a pain to sell, even in a strong market. There is a restrictive covenant as to occupation, requirements for an accessible apartment (including benches, doors etc) which make it appeal to a very small segment of the market. At the upper end of the market, you can still buy an excellent 3 bed apt plus another 2 bed, have money for a refurb and still come out at a lower cost than the SEPP5.
You will need to make sure that the council does not charge rates on the parking space at the standard rate (it may well outstrip any return).
Plenty of proprietry systems out there some better than others (look at Rentmaster – free trial available for download or manaccom [property pro and POSH]).
The system keeps track of all rent & expenditure as well as creating reports
Use one bank account, you know how much rent or which date the tenant is due & you check payments online.
