Originally posted by mum:
Hi Terry

I think some banks still do valuations in house or with a tied valuer. Hence they can influence the definition of market value and hence can request they be conservative.

Not all banks and not all the time. But often enough to be a nuisance to borrowers.

Mum

Hi Mum

Your correct. I know ANZ actually has…[Read more]

And how long is the agreement, you don’t want it to drag on too long – one of mine is dragging into its 5th year.

Terryw
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How much deposit did he give you? Just keep it and resell, and sue for the difference.

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Valuations are done by independent valuation companies, so I cannot see how banks are being more conservative. It is the valuers. Banks don’t lean on the valuers and say, “look, we want lower valuations”, the valuers are worried about being sued if the banks have to foreclose and the sale price is under what they have estimated.

Some valuation…[Read more]

The trouble with fixing, is if you want to sell or move to another bank, and rates move against you, you can be up for thousands to break the loan.

Antwa, you have a lot of loans, if you moved them all to the same bank, you may get further discounts. ie 7.27% on standard variable.

Terryw
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What can you do? Find another property or make an offer taking this into account.

If you are suggesting you have some recourse against the agent, then I am not sure you do. ‘new’ is subjective, maybe the kitchen is not brand new but could still be classed as new. Polish on the floor boards, maybe they are polished in some rooms? No door, did the…[Read more]

Good points Wazwaz, I have had no purchaser of my options want to see a contract, but it makes sense that they should be asking.

Maybe your tenant is an existing tenant? If so, that may be the reason for the 10% limit? Maybe you could put the rent up every 6 months or so?

How will you work out the end purchase price?

Terryw
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Strange. Maybe he is a graduate of one of those property guru course where they tell people to make multiple offers??

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10% extra on rent is not much. I have done some in Vic and was charging 40% extra in rent. Are you sure about the RTA preventing charging any more than 10% above market rent?

Do you need a contract of sale at this stage? You are only selling an option and the option agreement should probably cover the method used to determine the eventual…[Read more]

Valuers are independent of banks, so there should be no ulterior motives, but some valuers do tend to be conservative.
If you want to argue the valuer is out or range, you should put together evidence of recent sales of similar properties and present this to the bank or the valuer.

Terryw
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In NSW if the landlord makes the tenant pay these expenses and the tenant later takes the landlord to the tribunal, the tribunal will likely order the landlord to repay the tenant for these expenses. So it would be dangerous to include them in the lease. I would just increase the rent by a similar amount and leave them out.

Terryw
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Originally posted by groages:
Terry,

I’m not sure that I follow. I thought that depreciation was used to make a property as close to neutrally geared as possible.

If a trust claims it as an expense then this is actually doing the opposite and you would be better off not claiming it at all.

Is this what you are saying?

I thought that the…[Read more]

Time flies doesn’t it.

Terryw
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I have used them in the past. The exit fees are high from memory, probably around 1.5%, but this would be a sliding scale based on time in there.

I doubt you would get a refund of LMI if over 12 months, even the major banks only give a small portion within 12 months.

I think Mobius is their mortgage insurer

Terryw
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My understanding is the trust simply claims the depreciation as an expense. This reduces the profit, and may result in the trust making a loss. If there is a loss, it can be carried forward and offset against future income.

Terryw
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Under the Bankruptcy Act there is a section called Part IX which deals with debt arrangements.

Look at section 185 onwards: http://www.austlii.edu.au/au/legis/cth/consol_act/ba1966142/

I don’t think Angel_babe’s friend is going to have much luck. I don’t know anyone who would use the wife’s income if she has a credit impairment this severe.

The…[Read more]

John

I didn’t really mean terminate, but mutually agree to rescind the contract. You can them pay them a sum of money, you get the property back for under market value, and don’t need to worry about paying stamp duty etc on a new property, and they still make a CG based on the original price.

Terryw
Discover Home…[Read more]

I think Richard has stated there is no stamp duty in QLD on options. I have sold some options in VIC and believe there was no stamp duty there too. Think there is in NSW, but not sure.

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Off the top of my head, I know of at least one lender that would lend to you (ie to non residents, even those overseas). From memory, up to 70% LVR too.

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Depends on what your deed says. One of mine states that an “Appointor may (in writing) appoint another or replacement Appointor.”

Terryw
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