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It does sound like it is not a building defect, but rather improper waste being put down the sewer.
I suggest your friend get some legal advice, but as a starting point, if the blockage was caused on pipes in common property, then it would be a body corporate problem. If the blockage was in a unit’s premises, then it would be their problem. Ascertaining where the blockage occurred, and if possible who caused it, will help to work out who should compensate your friend for their damage.
Furthermore, does your friend have insurance? If so, I would be looking to see if I could make an insurance claim and leave it up to the insurer to seek recompense.
Finally, now it has happened once, what needs to happen in respect to maintenance and prevention to stop it happening again?
(And a point on due diligence for all – when buying a unit that is part of a complex, make sure you get a plumbing opinion on the impact of your unit if there is a blockage caused by a unit above or nearby).
As usual, a great tip Steve. It’s surprising how many buyer simply don’t do things like this. Even when I bought a new remote control for my TV priced at $69.95, I asked the question “How close to $50 can you come to for me on this?”. And ‘yes’ I did get it for $50.
Indeed and well said. I just negotiated a $500 discount of a medical procedure using the same approach.
A dollar saved is a dollar made.
Thanks for the tip Steve! I like your tip too Coatesman!
On Friday just gone I was trying to employ the the strategy of signing the contract with either a DD or finance/build/pest “get out” clause. The vendors had instructed the agent not accept any offers with “subject to” clauses. I thought this a little out of the norm. Thoughts anyone?
My expectation is that the vendor may have been burned by a bad experience in the past. In this case you could offer a much lower price for cash (i.e. no conditions) IF you were prepared for and were willing to underwrite the risk, with a higher price but a subject to condition. That way the vendor could decide if they wanted price or terms.
What is a good get out clause?
A clause you add as a special condition to a purchase contract that makes the contract conditional upon (or subject to) that clause being satisfied. Common examples are subject to finance, subject to building inspection, subject to planning approval, subject to due diligence, etc.
The more get out clauses you have, the less attractive your offer. Hence my preference for a general due diligence clause that really encompasses all the others.
Great one Steve. I recall a recent study that said if you use the word “because” it helps people agree with you even if the reason (of the because) is not entirely valid. Eg Can I step in front please because I need to use the photocopier (of a line of people using a photocopier) Apparently like over 70% compliance. Keep up the great work!
Indeed! That is from the excellent book ‘Influence’.
I have it in my library.
It’s going to depend on the scope of the works, and how urgently you need it done. The bigger the scope, and the higher the urgency, the bigger the cost. In respect to the legals, I would have thought circa $1000, less if you package it up with the conveyancing.
Yes, this will be a problem unless you are the owner. A builder would be my trade of choice.
I think the best way forward is to get the owner’s permission to do what you want to do once the property is unconditional. This is usually agreed as a special condition, but I would visit a lawyer to see if (and how) it can still be done now.
All the best,
Loving your eagerness fxdaemon.
The course being recorded is being held on Saturday. It will take a couple of weeks to edit it up, hence why I said on the webpage that it would be ready in April 2018.
Yes, may I recommend Daniel Gibbs – the gentleman you refer to who spoke at MMC last year.
His website is http://www.clinicmastery.com
I can unreservedly recommend Daniel.
Sure. Trading is when you buy with an intention to sell. Investing is when you buy with the intention of holding. That’s not to say you won’t sell, but rather you are not buying with the intention of fixing then selling in a short or medium time frame.
1/ If you purchase real estate with the intention of trading it then your profits are captured as ‘ordinary income’, rather than ‘capital gains income’. So if you buy a property with the aim of sub-dividing it and selling it, and you make a $100,000 in 15 months, then even though it is > 12 months, given your intention when purchasing it, the profit will needed to be added to your assessable income in its entirety as trading income. No CGT. The amount of tax you will pay will depend on the marginal tax rate applicable to the entity that purchased the property. Remember this: Be careful not to let the tax tail wag the investing dog.
2/ Having a job goes hand-in-hand with qualifying for a loan for investment purposes. This is the catch-22 of investing: you want to invest so you don’t need a job, but you need a job to qualify for a loan to buy an investment property. Managing the two is a reality for everyone. If you don’t have a job then you need to use private money lenders and/or JV partners.
- This reply was modified 5 years, 9 months ago by Steve McKnight.
G’day team, and especially Clyde.
Clyde – I’m coming late into the discussion here, but am I right in believing you own two properties with negative equity and negative cashflow?
If so, are you in a position to absorb the loss of selling either (or both) of them? Or are you no longer able to afford the cost of owning the properties and can’t afford to fund the negative equity on sale?
- This reply was modified 5 years, 10 months ago by Steve McKnight.
It’s Spectrum Finance.
You are welcome to contact them via the webform at this link:
Unfortunately, I have received mixed feedback from those who have made loan enquiries with them. I am currently reviewing and reconsidering whether I continue to refer people to them.
It’s not how many properties you own that matters, rather the financial consequences of owning them.
1, 2, 5, 10, 100… it’s just a number.
What’s more important, at least the way I roll, is the cash flow you derive, and therefore the freedom from work obtained, that is key.
I’m not on the same page with your thinking about the properties though. Economics works to explain that markets find an equilibrium at the price point where supply meets demand. There are enough houses for enough people who want them (can afford them?) at that price point, all the time.
Whether that price is affordable, reasonable, sustainable, etc. is another conversation.
I agree with Ben in principle, but in practice I think it is a moot point.
Experience shows that different people want different things out of life, and for some, following an investment pathway similar to what I describe in my books, etc. just isn’t of interest – at that time or circumstance in life, or at all.
Let’s not forget too that there are many pathways to the wealth creation summit.
Furthermore, not everyone who invests in real estate desires the same outcome, derived the same way. Consider the divergence in belief between negative and positive gearing.
Taking up Terry’s point then, in reality the opportunity is open to those who want to pursue it on an individual basis, which offers hope to those who want to make sacrifices and work hard to achieve a level of financial empowerment open to all, but sought in earnest by few.
Yes, you are correct. Many State governments have introduced additional stamp duty for foreign buyers (note that there is no discrimination against Asians as such). Some State governments have also introduced an additional land tax component.
The Federal government is also in on the act by phasing out access to the CGT discount while also increasing withholding on sales by foreign property owners and somehow charging foreign owners who leave their properties vacant.
We’ll have to wait and see how effective these new measures will be.
On one hand the additional taxes may strangle the foreign golden goose buying up (mainly) off-the-plan properties – which in turn supports construction, jobs and GDP. On the other hand, if their aim is capital preservation (as is the case for some Chinese investors who just want their money out of China), then a little extra cost is unlikely to worry them if the bulk of their capital is safe.
Keep an eye on the movement in property prices. As we come into Spring, and with a spike in off the plan properties due to hit the market soon, if the additional demand for housing does not match the increased supply then prices should fall.
All the best,
You’ll need to prove you have the reputation, skills and ability to pull this off. Money is attracted to good management.
I think your best option is to approach your accountant to see if s/he has any clients that are interested in coming is a JV partners. That way you are leveraging off their trust and relationships, rather than forming your own.
How does that compare against what you might pay a developer under the basis you mention above?
Which State is your project located in?