Ingleburn and Surrounds

mardi 31 mars 2015

Seems like Ingleburn and surrounds are heating up.



Just got an email from my property manager, they are No. 1 in sales for Sydney region in March.



To quote the email:




Quote:








-We are ranked 1st in Sales out of 150 Agencies

-We are ranked 5th in Rentals out of 149 Agencies



---




Quote:








Over 10 - Properties Under Contract in 3 Days

Over 20 - Many Deposits taken in 24 Hours

Over 25 - Transactions Made in 3 hours of less

Highest Selling Ratio per Agent @ 45 Settlements per agent.



Disclosure: I'm happy about this, I have an IP in Ingleburn!

Ingleburn and Surrounds

landlord protection insurance

Has anyone had experience with this company - Landlord Protection & Collection? compared to the main ones regularly mentioned here.



http://ift.tt/1DqV2Be



http://www.landlordprotection.com.au...ord-insurance/



They can offer building as well through Alliance.





I am currently with EBM, and my recent claim process wasn't the best.



My property manager swears by this company.



They said if you have a court order for an amount this company will pay you the full amount within 21 days without any excess irrespective if the amount isn't recoverable by debt collectors.



I am interested to hear peoples comments.

landlord protection insurance

CGT calculator

would anyone be so kind as to give me an idea what I will be up for (and when..) if i sell my IP?



i bought it almost exactly 2 years ago for $580, selling price will be $660



taxable income is say 190k p.a



is the cgt payable when sold or later when you do your tax?



thanks

CGT calculator

Hillface zone

Am thinking of getting a big land in Adelaide Hill, but it's under so called Hillface zone. Just wondering does it cost a lot more to build a house in the hill? What are the other concerns I need to take care into?

Hillface zone

Suggest development types for L Plate developer

Hello everyone!



I've been thinking about trying myself in property development for quite some time now. In the meantime I've been educating myself with all available information on property development, finance, marketing, etc.



I think I may soon decide to move from theory to practice and start my first development project. As most people recommend and I understand it that I need to start with something quite small (e.g. subdivision of a lot with existing house with following construction of a new house).



Could you please suggest types of development projects for a newbie? All suggestions are welcome.



P.S. As for the location I'm thinking western Sydney as it's a bit more affordable and growing area.



Thanks!

Suggest development types for L Plate developer

Thanks Sim

Hello fellow Forumites.



As some of you have been well aware, Sim has been searching for a new Forum Moderator for some time to join the team of himself, Rolf, Geoffw, Keithj and Y-Man after a few of the others have been notably absent of late (Alexlee..)



After many phone calls, long nights in the chat room teaching me how to use the SS software functions, and our meeting in Sydney a couple of weeks ago, Id like to formally ask you to welcome me on board as your latest Forum Moderator.



I hope to serve you well, and look forward to keeping Somersoft a place of prosperity and fun.





pinkboy

Thanks Sim

Ideas for old tennis court

Have you seen any creative ideas how to use old tennis court, if you do not want to keep it as a tennis court?

Ideas for old tennis court

QLD Finance Clause When does it start?

In QLD a contract becomes binding when both parties sign and the contract and it is returned to the purchaser or their solicitor. Five days cooling off starts from that day.

What i want to know is when does the 14 day subject to finance clause start.

It seems logical that it would start on the same day that the signed contracts are returned to the purchaser or his solicitor.



Had a solicitor tell me that it starts on the day the contract was signed. Not the day the purchaser or his solicitor got the signed contracts back . This doesn't seem logical. There was a five day difference. Which reduces the time i have to arrange a loan by five days.

Thanks for any help

QLD Finance Clause When does it start?

Share Trading

Over the last few years I have searched for a trading system that wouldn't take up to much time and require screen watching.



If it wasn't for an anonymous poster on a share forum by the name of 'Snifter' I'd probably be still floundering around in the trading wilderness. This system borrows some ideas from Stan Weinstein and Alex Elder but doesn't trade their systems.



I have used the following system on and off during this time with some success.



At the start of the year I decided to have a good crack, to date the results are fine but it is to early to make a sensible judgement.



The core strategy is the same as always....buy dips during uptrends, short rallies during downtrends. Work entirely from weekly charts and I spend about an hour or so each week in analysing the market. I rarely look at the market during the week, and if I do its only to see how a trade is going....I don't do any analysis or make any decisions from daily charts.

I do no fundamental analysis except to let the weekly trend give me some idea of the soundness or otherwise of a company's fundamentals.

I have no use for either trend lines or volume analysis. I don't look for the dozens of chart patterns ....I'm mainly interested in trends and retracements.

I use the CCI indicator on a setting of 3 to find pullbacks (or rallies during a downtrend). The CCI is purely to give the scanner something to search for...if I was eyeballing each chart I'd visually identify the pullbacks without using an indicator like CCI.

I trade only the blue chips....there are plenty to choose from, more than enough to supply you with plenty of trades even if you follow only the ASX Top 200.

Far from being the 'slow moving dinosaurs of the stock market', as is commonly believed, many blue chips have posted anywhere between 2 and 10 times the gain of the overall market in recent times. Some have done even better than that.

A trend following system like mine performs best in liquid stocks that tend to trend in a relatively stable manner. The good liquidity enhances the effectivness of stop losses. (stops tend to become less effective in thinly traded stocks.)



The template I put on my WEEKLY charts is...



* 11 period ADX with a horizontal line set at 25.

* 3 period CCI histogram with a horizontal line drawn at the zero level.

* 13 week and 26 week EMA's.



Here's what I do in my weekend analysis ...total time spent is about an hour or two to analyse the Markets that I follow.



First, check the WEEKLY chart of the All Ords (or whichever market you trade). If the 13 EMA is above the 26 EMA, both are rising and pulling further apart, and the tops and bottoms of the price action are getting progressively higher, then you know the overall market is bullish and you ABSOLUTELY MUST trade ONLY long positions.

The mirror image of these rules apply to identify a downtrend. If the overall market is downtrending, you ABSOLUTELY MUST trade ONLY short positions.

I cannot overstate the benefits of being in tune with the overall market...its VERY important.



SCANNING.

If the weekly trend of the All Ords is bullish...Scan for 'CCI crosses below zero' This scan finds stocks that are in the process of retracing to the downside.

OR

If the weekly trend of the All Ords is bearish....Scan for 'CCI crosses above zero' This scan finds stocks that are in the process of retracing to the upside.



With just a couple of mouse clicks the stocks picked by this scan can be put into a separate workbook. My weekly template is put on these stocks. Now I look at each stock one by one, but at this stage I'm only interested in the ADX, not the price action. As each chart comes up I'm looking at the bottom right corner of the screen to see if the ADX is above the horizontal line which is set at 25. It takes only a one second glance to check the ADX reading, and if its not strong enough, a further two seconds to put the next chart up on the screen. It sounds inconceivable that you can check out a new chart every three seconds, but remember that the process so far has been mainly to weed out the undesirables rather than to pick the winners.

If I come across a potential winner (one whose ADX is reading 25 or higher), I then check it's price action, Moving Averages etc, and if it shapes up OK in those areas I transfer it to a workbook which I've called 'Watchlist'....this takes just a couple of mouse clicks.

Out of my workbook of 600 US blue chips the scanner usually finds about 10% - 60 odd stocks, that are giving the CCI signal. At less than 5 seconds per chart it doesn't take long to whiz through this list and cull most of them, and save the best 8 or 10 to a watchlist.



The final selection on the top 8 or 10 is purely visual. If the overall market is bullish I'm looking for the stock to have....

* Higher tops and higher bottoms, 13 EMA above 26 EMA, daylight (space) between the two MA's, both MA's rising and pulling apart.

* ADX reading of 25 or higher.

* Stock must be in the process of a pullback.



ENTRY...

Put a buy stop or a buy limit order 1 tick above the candle that pulls CCI below zero. Lower the buy order each week if necessary to just above the top of the last candle. If/when the uptrend resumes, your entry order will be filled.

OR

For a more conservative entry, put the buy order 1 tick above the first bullish candle following the pullback.

All buy orders are placed on a GTC (good till cancelled) basis.



STOP LOSS...

Attach an 'If done' stop loss order to your buy order. If your buy order is done (filled), your stop loss will automatically be put in place.

I like to place the stop somewhere between 8% to 10% from entry, but I've used a 5% stop on occasion. 8 to 10% gives the market a bit of room to fluctuate without stopping you out.

For long positions its prudent to pay a small extra charge to use a GSO (guaranteed stop loss order), if your broker offers this facility. A GSO is designed to protect you against a severe price slump that could gap past your stop loss order.



TRAILING STOPS.

As the trend moves in our favour we need to progressively lock in profit. I do this by moving my stop up to just below each swing low on the weekly chart. Each swing low is of course preceded by a swing high. When each pullback ends, and the revitalised uptrend moves above the last swing high, then and only then will I move my stop loss up to 2% under the swing low.

I repeat this process each time a higher swing low is made, until finally the trend dies and my stop is hit, and I'm taken out of the trade.

There's one other part to my trailing stop strategy....if a weekly candle penetrates the 26 week EMA, at the start of the next week I'll move my stop up to 2% below the bottom of that candle. A penetration of the 26 EMA can sometimes be a warning that the trend is getting tired, in which case its prudent to take the precautionary action of moving your stop up to just under that candle.



MONEY MANAGEMENT.

2% of my trading capital is the maximum I'm willing to risk on a trade.



SUMMARY.

Use weekly charts exclusively.



Once a week check the weekly trend of the overall market, and trade only in that direction.



Find stocks that are trending in the same direction as the market as a whole, but are currently retracing.



Use the ADX to measure the trend strength of these stocks.



Buy these stocks as they finish their retracement and resume their trend.



ALWAYS place a stop loss order, and make it a guaranteed stop loss if you're trading long.



Use trailing stops to progressively lock in profits as the trend moves your way, and to take you out of the trade when the trend dies.



Use the 2% money management rule to prevent serious depletion of your trading capital from a losing trade.



If the overall market is bearish, use the mirror image of the system to go short in bearish stocks.


CONCLUSION.

By cutting losing trades quickly and letting winning trades run as long as the trend remains healthy, by trading only in strongly trending stocks, and by trading only in the direction of the overall market, this system virtually ensures an acceptable ratio of winning trades to losing trades, and that the average profit will be considerably larger than the average loss.

The icing on the cake is that a large number of stocks can be analysed in just an hour or two once a week.

Share Trading

LMI - deductible or not deductible?

Hi guys



Sorry for another question..



I've got my unit which is my PPOR which currently has an LVR of 80%. If I were to get this revalued after doing a reno at increase LVR to 90% and used the full amount of the new funds as a deposit for an IP, would the full amount of the LMI be deductible?



Would this change if the depending on whether the unit become an IP itself or stayed as my PPOR? (would split the loan if it was staying as PPOR)



Thanks in advance!

LMI - deductible or not deductible?

How to evict a tenant?

Dear All,



I really am hoping that you guys in this forum can help me with my issue. I have never thought I would get a bad tenant, until today. Here is the story:



I am the owner of an NRAS property in Annerley, QLD, and since September last year, a new tenant moved in. Everything went well, until last month he has showed difficulty in paying rent. Up to now, he has been six weeks in arrears.



My agent has issued him a notice to leave last week, and tomorrow is the last day he is supposed to leave. When my agent inspected the property today, they were disgusted at the state the property is in. Tenant?s daughter and another lady was home at the time of inspection (but they were not in the contract). The whole apartment was extremely dirty and messy. There was a jack russell in the apartment at the

time of the inspection, with dog food over the floor. The apartment smells of cigarettes. It was very hard to walk through the apartment due to the amount of clutter. Ceiling fan was extremely dusty; filthy toilet and basin, and heavily stained courtyard. The property smelt extremely badly of cigarette smoke, and there was also a full ash tray out on the couch as well. The carpets are heavily stained, as are some of the walls and also the back patio.



My question is, if you are familiar with law in Queensland, what is the best and quickest way to get this tenant evicted? Is there a possibility for me to recoup the money needed for the cleaning, and to restore the unit to its previous state?



Please help, and share if you have similar experience too. Thank you in advance for your reply and assistance.



Kind regards,



Ricky

How to evict a tenant?

Tax Variation

Hi Guys,



Interested on peoples thoughts regarding Tax Variation.



The idea of accessing your entitled tax back weekly rather then waiting 12 months sounds pretty good.



For example, have a look at these figures for one year on a sample investment property.



Rental income $18,279

Interest expense $25,238

Other general expenses $3,751

Pre-tax cash flow -$10,710



So $10,710 per year, or $206 a week, is needed to support this property while you wait for your tax return. Imagine you had two or more investment properties, could you find $20,000 to $30,000 a year?



Now let?s take a look at the figures on the same property, including tax breaks.



Rental income $18,279

Interest expense $25,238

Other general expenses $3,751

Tax break (deductions) $8,141

After tax cash flow -$2,569



$2,569 per year, or $49 per week, is obviously much easier to find than $206 a week. As you can see, these tax breaks make investing in property much more affordable.





Im sure Accountants and Tax nuts will be able to add some advice on this. Pros and Cons. Do you recommend Tax Variation to clients? Why, Why Not?





Cheers

Tax Variation

Steve McKnight 2 hour training event

Hi everyone, has anyone attended one of Steve's seminars? He is having 2 hour training event in major cities about economics and investment strategies.



I was thinking of going, you can never learn enough, but hope he is not selling how to become rich overnight strategies

Steve McKnight 2 hour training event

6 unit development Melbourne

lundi 30 mars 2015

Hi All,



I have recently become a member and this is my first thread.



A little about myself. I graduated a year ago with a Civil Engineering degree and currently working for a transport engineering firm. I have plans to move back into structural/civil and potentially get a builders license .



I'm excited to learn from all the experienced developers/investors and I look forward to meeting you all.



My first project is in the West of Melbourne and the architect has been able to fit 6 double storey, 2 bedroom, 2 bathroom, reversed living town houses.



The land size is 740m^2 and each town house is roughly 130m^2 (including balcony and garage)



My questions are:



1. Is 130m^2 too tight?

2. Should I have a bath tub? Without it I can put the toilet in the bathroom and use that extra space for storage maybe.

3. Do you think I need a town planner?

4. Do you think I need a project manager?



Look forward to reading your replies. Anything will be helpful =).



Cheers,



Derrick

6 unit development Melbourne

Insurance company

Hi all,



just wondering which insurance company do you guys use ? and how is your experience your insurance company when it comes to claim ?

Insurance company

Replacing entire fence, tax deductible

Hi all,



I have an investment property where the 2 of the piers on the brick fence have collapse... I've spoken to 2 bfence repair place and they said they can repair but it will happen again... So to prevent any liability issues, I want to tear it down and replace the lot... Is this tax deductible?

Replacing entire fence, tax deductible

Self managed super

Not sure if this it the right forum for this topic, but would appreciate any thoughts on this matter.



My husband wants to setup a self managed super fund (with both of us as members) for greater control over our super investments.



We are both in our early thirties, personally I feel that the time required to manage the fund and its compliance vs its return /benefits is not worth it at this point in our lives.



Any thoughts? What are the real benefits of having a self managed super?

Most people that I am aware of with SMSF are retirees or close to with much larger accumulated supers.

Self managed super

Selling - marketing

About to sign the paperwork appointing an agent to sell my property and just wondering what everyone does with regards to marketing?



They want 6 weeks worth of advertising in the local paper, some at quarter page size ($2000 worth). Also $360 for "featured property" on realestate.com.au.



Is any of this really worth it? I myself do most of my looking online and I can't say I've ever paid much attention to feature properties.



I'm inclined to cut it to 4 weeks in the paper and standard listing online.



Thoughts?

Selling - marketing

Scrapping assets and tax claim

What are the thoughts on claiming deduction for a kitchen that one would scrap/dispose. Say the Depreciation report valued it at $5,000. Investor puts in a new one at $15,000.



Does it mean in Year one, the claim will be $5,000 + Depn on the $15,000?



If yes, that would also suggest the cost base goes down by $5k for the kitchen disposed?

Scrapping assets and tax claim

so ticked off

Have just been notified the guy we chose for the steel frame for our double storey deck, cant do the job. He has been stringing us along since before christmas. We thought we would hve the deck finished for New Year's Eve party. He hinted at one stage he wouldnt be upset if we went with someone else but we said no we would wait for him as he came with recommendations. Why cant people just be honest and say they cant fit us in.

so ticked off

What research tool subscriptions do members have?

Just wondering if members here subscribe to any service in particular e.g. RP Data for property sales history/valuation estimate or NMD Data for mortgagee in possession properties?



Any tools which assist with searching for target properties in any market (without needing to employ a BA specifically to do so)?



Thanks

GG

What research tool subscriptions do members have?

First home buyers grant loss

Hi guys,



I've read tons about this but still not sure about one fine detail - what is it, exactly, that makes you lose this grant?



I am in a position where i need to help mum take out a loan to buy either persons first property. The loan will be under both our names. In doing this, have I now given up my chance at the grant, or can the property papers be signed exclusively under her name (or vice vesa)?

First home buyers grant loss

Investment Property Data on realestate.com.au

Hi all,



I am currently beginning my process of searching for my 1st IP. I'm using Margaret Lomas' 20 Must Ask Questions as a guide. I'm in 1st steps trying to hone in on some areas with decent cash flow to begin with.



I'm trawling through realestate.com.au and have noticed the Investment Property Data section for every town/suburb which lists the gross yield, estimated cash flow etc. for that property type in that suburb.. just wondering if others find these calculations handy? Or if it's better to neglect them and try to work out your own average yield calculation?



Any recommendations for searching? I'm finding it a bit difficult. My aim is to locate towns/suburbs throughout Australia with strong growth potential, but minimal cash out of pocket (i.e. at least 5% yield).



Any advice is appreciated :)



Dave

Investment Property Data on realestate.com.au

Aussie Mortgage Broker Info Night

This is my very first post, so if my thread isn't relevant please move it to somewhere relevant.



Last week I had contacted Aussie Home Loan for the position of Mortgage Broker and they had invited me to join their information night. Before I ask any questions here's a list of my background.



- graduated with an economics degree (with lots of finance courses)

- started a small MMO game where I had advertise a-bit until I had to close it due to my study load a few months later

- bilingual (knows more than one language)



So heres are the questions for current mortgage brokers (preferably the one who works with Aussie)



>what is the commission structure? is it similar to the one i had linked below?



http://ift.tt/1xPiKGF



>will I had to pay to be a mortgage broker even if I work with a company (aussie)



> will there be any constant leads (works with Aussie) or cold-calling just like an average sales job



> do you need to use lots of financial calculations to conduct a search for the best loans to the client?



> how long did you spend on paperwork per client (just an average figure please i know it depends on different situations)



I actually starts to become interested at being a Mortgage broker because of its potential due to the inherent supply problem of the property market as well as population growth. Along with factors such as low interest rates and the continuation of negative gearing which creates a demand of property brokers from an increase of loans (since they deal with 50% of loans).



Oh and lastly some banks starts to raise commissions to brokers which further strengthens my theory that the industry had more potential.



I don't want to sound like an unemployed graduate who wants to get a quick buck but i can see the potential to use what i had learn and actually earning an income via current market trends and hard work.

Aussie Mortgage Broker Info Night

Deer Park - Write Up

Hi Guys,



Mentioned this in another thread thought I'd post it front page for future searches.



Investing in Deer Park.




Let me first say, I'm personally not a fan of Deer Park as an investment area but I understand that you, as an investor will come to your own conclusions and as such I'll attempt to present to you some facts and thoughts for your consideration so that you can, at the very least, make a more informed decision.



New to investment introduction:
For me and many investors, capital growth is the main prerogative for investing in real estate as it's the only aspect that compounds over time and thus is the most powerful form of wealth creation.



With growth being considered first and foremost it's important to note that it's not "land" that appreciates over time it's the peoples', or the market's perception that appreciates in any given area more (or less) over time.



Market perception is the only thing that moves prices up or down.



Supply and demand is the fundamental mechanism that turns market perception into quantifiable house prices. The more people that want a particular area/street/house/unit the more they'll have to pay to secure it.



Market perception can be manipulated too. For example interest rates are a way of controlling how affordable people perceive properties to be at that time.



When investing it's important to understand whether an area is genuinely growing due to a good market perception or if there are other factors manipulating the capital increments.



Many people now think that they've bought in a great area as their properties have grown well since 2011 when coincidentally interest rates started dropping at the same time. When rates go back up, will those areas still be desirable enough to sustain growth or will they be stunted or even go backwards?

So what does Deer Park have going for it that the market will perceive to be desirable?



First we need to understand who lives there... Who makes up that market?



Demographic

  • 45% Australian born

  • 70.4% Both parents born overseas

  • 59.7% Work Full-Time

  • 43.9% Are blue collar workers

  • 67% Drive

  • 4.5% Catch the train

  • 45.7% Have children

  • 66% Live in 3BR Houses

  • 22% Live in 4BR Houses

  • 67% Own/Buying Houses

  • $384/wk median mortgage

  • $270/wk median rent




Source: http://ift.tt/1IgcyHS




From this we can ascertain that the majority of people here find this area desirable if they:

Have immigrated;

Are blue collared workers;

Don't need to commute into the CBD;

Want a good sized house;

Want somewhere to raise children (consider schooling, parks, children activities);





So what are the types of things that will make this area more desirable to existing residents:



Local blue collar jobs;

Good schools;

Safe environment for children;

Stable area for family;

Supermarket for family food;

Cafes/Restaurants;

Adult activities;

Good roads;

Access to services such as hospitals;

English learning services.



Also consider, what would everyone else (outsiders) want in an area?

I won't list these here as there are many things.



What does Deer Park have now to ensure that desirability stays?

One Secondary College

Four Primary Schools

Jobs at nearby factories/industrial areas (e.g. Orica)

Coles Supermarket

Restaurants/Cafes (Ballarat Rd & Brimbank)



Source: http://ift.tt/1xPiJCJ , http://ift.tt/1IgcyHU



What is happening to increase desirability?
Please note this is for all of Brimbank:

  • $16.9 million on road works

  • $5.28 million on sports facilities

  • $2.1 million on sustainability projects

  • $1.3 million for playgrounds, parks and gardens

  • $1.76 million on traffic management

  • $23.75 million on community facilities

  • $4.94 million for walking and cycling pathways

  • $0.89 million on town centres

  • $0.23 million for drainage rehabilitation






What is working against desirability?

  • Maximum security female prison

  • Chemical production and storage

  • Pacific/Australia/Deer-Park

  • Crime (Prisons mean prisoner's families may move close by):

  • Low population growth: 3.48% Growth from 2015 - 2045


Sources:

http://ift.tt/1IgcyYa

http://ift.tt/1IgcyYd

http://ift.tt/1IgcxUf

http://ift.tt/1xPiJCR

http://ift.tt/1IgcyYm





What else will effect future house prices?

Zoning and planning

Land Supply

Housing Supply: http://ift.tt/1xPiJT7 / http://ift.tt/1xPiHL2

Job creation

Infrastructure & development: http://ift.tt/1xPiJTd





GROWTH SUMMARY

If future projects go ahead there may be a glimmer of hope for great growth in Deer Park. There's been talk of an electric rail line but the area is such a safe labour seat it's unlikely that will move forward. Also gentrification of industrial areas is being considered but this won't be ratified until ~2017.



Currently there are no major projects, population growths or substantial increments in accessibility and lifestyle amenities to move this suburb from a cheaper working class family area into a suburb in which the whole market finds desirable.



The suburb faces socio-economic and language barrier challenges, also higher murder and rape crime rate problems which will repulse the single female market. (Compared with Melbourne's highest single female population areas). Council is working on this problem with community facilities.



There is lack of transport into the city which will deter younger people who wish to have nights out and also CBD commuters (although the V-Line does run regularly http://ift.tt/1xPiJTh).



The council is actively trying to make the area more appealing for children so there may be more scope for young families who want to own a house rather than renting. This area will not attract people who desire private schooling however (1.2% currently attend private institutions).



There is scope for gentrification and subdivision to occur in three GRZ3 areas which may increase nearby RZ1 area house prices: http://ift.tt/1xPiHL5

Housing approvals in Deer Park however are not as exciting as Sunshine and Sunshine West (both of which are better for renovate/development investors).



There are high risks to capital growth in Deer Park. These risks are mainly the huge amounts of available land available for developement in neighbouring Derrimut and Ravenhall which could easily over saturate the stock levels of residential real estate as the population growth is not growing aggressively.



In summary this area would be expected to perform worse to equal with Greater Melbourne in the range of 1-3% for units and 1-4% for houses over the next 5 - 8 years.







What to buy

If you want to purchase in Deer Park buy what the majority of the market wants to live in as a home. In Deer Park that primary market desires 3 bedroom houses.


  • 90.4% (4,845) of properties in Deer Park are detached houses;

  • 6.1 % (325) are units.






If you're considering buying a unit here, stop. Think about this:

When it comes to resale time you only have a niche or minority of the local population that would consider purchasing a unit as a home. Having a large pool of potential home buyers is key in attracting future emotional results during the sales cycle for extra profit.

Also, only 14 unit transactions occurred over the last 12 months

(source: http://ift.tt/1IgczeS )

This means a unit in Deer Park is more illiquid real stock than in other areas like St Kilda where units are traded regularly.

Source Investopedia: "The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase the asset. The lack of ready buyers also leads to larger discrepancies between the asking price (from the seller) and the bidding price (from a buyer) than would be found in an orderly market with daily trading activity."

In short, it is more likely to be difficult to sell that unit quickly or to have an outstanding recent comparable sale to get a good bank valuation from in the future.

TLDR; (Too long didn't read); If you're certain you want to invest in Deer Park only buy a 3 Bedroom house.





Look for a decent brick house (again 3BR) on the North Deer Park side near Coles and North Deer Park Primary. Make sure it's in the Residential Zone 1 planning scheme. Good example streets to consider are: Amelia Ave and Ambon Ave.



The train station at this point in time is irrelevant as only a minority commutes.





I hope this helps anyone considering this area.

Deer Park - Write Up

Searching for property?

Hi members..



Just querying the way I search for deals and wanted to ask other members how they go about sourcing deals..



I have a number of resources I use but constantly looking to refine my methods.



I know there are a lot of deals which do not even hit the internet (Mr Birch would testify to that), however we all still have our way of doing things..



On a side note, does realestate.com.au pick up most listings in your opinion?



Look forward to hearing from you all.

Searching for property?

New Mortgage Broking Business

Folks, Need some help on setting up my own business:



1. Going for Connective as aggregator, your thoughts?

2. Looking for a virtual office in Melbourne, any suggestions?

3. Good marketing company to generate leads?

New Mortgage Broking Business

Cheap Carpet Melbourne

Hi All,



Anyone recommend any carpet places to get a competitive quote including installation for carpet?



Thanks,



Tony

Cheap Carpet Melbourne

Cost difference b/w Townhouses and Low-Level Multi-Residential

Hi everyone,



I posted a few months back about someone purchasing the block next door to me. Nice fella. Seems straight up. He approached me about doing a possible JV and we've just had informal discussions so far.



Some basic facts. The 2 properties combined are roughly 1550 m2. 35 metres wide by 45 metres deep.



Building townhouses I'm guessing we could get around 10 on the 2 blocks, but building it as a multi-residential we could easily get 8 per level which would be 16.



I was thinking of something like this http://ift.tt/1EoEbQV where it's ground floor parking (no basement), and 2 levels of apartments.



He insists that townhouses is the better option.



I know it's really hard to give an estimate, but does anyone on these forums will experience have an idea of what the cost differential between the 2 proposals would be roughly. Just a ball park figure. I'm trying to work out why he's so against the idea of building apartments.



Thanks.

Cost difference b/w Townhouses and Low-Level Multi-Residential

Mildura anyone

Hi guys,



Been doing some digging on Regionals and MILDURA keeps coming up as somewhere with potential. Reasonable growth and good yield and entry price for a typical 4 bedroom is cheaper than other regionals of similar size.



Most commentators have Mildura as either watch closely and others with good potential. I am looking for something that is going to cost me $300,000 or less, close to positive as possible and with the growth ticking over for next 7-10 years. Don't want much I know. I see vacancy rates in Mildura is 0.56% which is fantastic. Growth expected at about 7% this year - another great result.



Anyone got thoughts on Mildura ? Any areas better than others, new - V old,



I currently hold properties in Townsville, South Australia, Sydney, Medowie NSW so trying to get in as light as possible with some potential. Cant afford to enter Sydney market again but hoping something in Mildura might balance my portfolio out and give me some kick.



Cheers.

Mildura anyone

Craigieburn

dimanche 29 mars 2015

I am looking into buying a house at Craigieburn as an investment property. Please educate me on the suburb as a place to live in the future.

How efficient are the transport system to Melb cbd.

Is ROI good over 10 years from now.

Are rental returns good.



Cheers,

Gobie

Craigieburn

pay repairs from LOC

Accountant told me repair is debuctible.



So why people always pay from rental by agent? Anything I missed.

pay repairs from LOC

Payment methods for the IP by LOC?

If we use LOC against PPOP to pay for an IP, we can claim tax deduction for LOC interest. Is it correct?





However, I wonder how we use LOC to pay for an IP at the settlement date. There are the possible payment methods:



1. At the settlement date, use LOC to buy a bank cheque and present it to the conveyancer.



2. Transfer the fund from LOC to a bank account, then use that bank account to buy a bank cheque and present it to the conveyancer.





3. Transfer the fund from LOC to a bank account, then use that bank account to pay directly to vendor (if the loan account and the bank account in the same bank i.e. CBA)





With the payment methods above, I wonder if there are any troubles for interest tax deduction claiming from the ATO perspectives.



Any other suggestions or different payment methods suggested

Thanks

Payment methods for the IP by LOC?

Managed funds

I currently have around 20k saved for an investment property. Obviously that will only cover my deposit and mabe a little bit more. But while i save the rest, woul it be worth offsetting 2-5 grand in managed funds??

Managed funds

April Fools Day

April Fools Day is coming up so does anyone have any good ideas on what they are planning or detail and well executed past pranks?

April Fools Day

Making Premade Townhouses from China for Australia

Just saw this news article.



Would anyone consider doing this and would it affect end value when selling or holding?



http://ift.tt/1xqbX5Y

Making Premade Townhouses from China for Australia

Radio Rentals

Radio Rentals made $90 million from Centrelink payments last year




Quote:








Centrelink payments made up almost half of white goods leasing market leader Radio Rentals' revenue last year, the ABC can reveal.



Last financial year the company's total revenue was $197 million, and $90 million of that came from the federal Department of Human Services through the direct debit Centrepay system.



The Centrepay system was originally designed to help Centrelink customers budget, with money for bills directly debited from bank accounts as soon as benefits are paid.



However, in recent years payments for more discretionary spending ? such as leasing flat screen televisions and sounds systems ? have increased.



A report released this month by finance company Credit Suisse found that half of the Centrepay revenue received by Radio Rentals, or about $45 million, was for entertainment items like televisions or smart phones.



When not working it was all about rent, food and transport for me :confused:

Radio Rentals

Inner western Sydney PM

Hi folks, can anyone recommend a good PM for a townhouse in Leichhardt?

Inner western Sydney PM

Reusing concrete slab

Wondering if anyone has any experience with this- have a small crappy old garage on a large slab. Garage now is single, slab big enough to fit a double colourbond kit garage with workshop. Can I get rid of existing garage and then just bolt new in its place? slab looks good condition. What might council think? Where would this fit in their DA processes? If the slab looks solid, thick (everything here on the over engineered side by old bloke who built it, has stood for 40 odd years so far) and I have no plans to live in new structure is this doable?

Thanks in advance.

Reusing concrete slab

Maroubra

What do you guys think of Maroubra?



I have been looking mostly in Randwick, but I have expanded to Maroubra now, since it would be very convenient location for a PPOR for me (given that I work in Eastgardens).



I don't anticipate living there forever, though, so need to assess the property/suburb from an investment perspective. Prices in Maroubra seem quite a bit lower and yields seem a bit higher than Randwick, but I guess it has a lot more high rise apartments, which would potentially create an oversupply issue, thereby limiting capital growth. I've also heard some feedback about southern Maroubra being unsafe due to a high concentration of housing commission there.



Would love to get your thoughts, anyway - would you take Maroubra over Alexandria for a more budget conscious buyer, for example?

Maroubra

Final inspection . Vendor hasnt maintained property well

Hi , Final inspection tomorrow (afternoon settlement) and the gardens are a mess. On auction day (nsw) lawns and garden very neat .



Thats not so bad i guess, but whats bothering me is a large (44 gallon) drum that seems to be full of used oil sitting near the garage.



Surely i cant be responsible for disposal of waste oil .



How are these situations sorted? Do the conveyancers agree to a dollar amount to cover costs?

Thanks

Final inspection . Vendor hasnt maintained property well

Block of Units - 1 loan, or 4?

Hi all,



If you were to purchase a block of units, which are on one title, would it be more beneficial to have 1 loan for all properties, or separate loans for each property?



My preference is to have a separate loan for each property as they are indiviaul properties after all. The tenancies will be different, rental amount may be different, expenses will be etc., so keeping them separate would be easier from an accounting point of view, I would have thought.



Just after some feedback from those who already own such investments to see how they went.



Ta,

Andrew.

Block of Units - 1 loan, or 4?

Depreciation

samedi 28 mars 2015

Hi guys



I bought a one bedroom apartment which settled in January this year. I'm currently renovating the kitchen and doing minor touch ups here and there. It will eventually become a rental unit.



Just wondering with depreciation, is it worth getting a report completed when I'm about to rent it out? Will the depreciation claimable outweigh the cost of the report? Apartment was built in 1970's so I believe the building itself is already fully depreciated? I believe that there were major renovations done to the apartment - rendering of the outside (but unsure of when this would have been completed, looks newish) and decking out the back. I'll have receipts for all the kitchen renovations and any tradies that we get in.



Thanks!

Depreciation

Variable rate

Hi



Situation is as follows:



Borrowed 700k Westpac in March 2013 (property purchased 840k)

300k was fixed for 2 years at 4.99

400k fixed for 5 years for 5.69



Fast forward to the present and the 2 year fixed rate is up for renewal.



Property is now worth about 1.2/1.3m



I have about 120k excess cash (with the max of 30k in the 5 year fixed redraw account).



Westpac offered last week 2 years fixed at 4.45% or a variable rate with offset at 4.70% for the 300k that is up for renewal.



I plan to choose variable so I can have an offset account as I may purchase a second property in the future.



Questions:



1. What is the best Westpac variable with offset for 300k? I think 4.70% is a little high. Has anyone in a similar position got a better rate with Westpac?



2. Considering that the break fee on the 5 year fixed (with now 3 years is huge around 15k mark), do I have any options in terms of going with other lenders or other strategies until the 5 year fixed is finished in March 2018?



Many thanks.

Variable rate

App for Somersoft Forum

Morning,

Is anyone using a particular app to read Somersoft or are you simply logging in direct? A forum app does make reading and keeping abreast with new topics easier 😄



Thank you

App for Somersoft Forum

Dividing fence - definition

The covenant on our block gives very restrictive conditions for all dividing fences. We have a corner block and want to put our own fence (outside the covenant rules) along the roadside boundary.



Does "dividing fence" include this boundary? My google research says no but I want to be sure.



Thanks!

Dividing fence - definition

What sort of contract?

I had this all figured out, but somehow have gotten my head in a spin.



For my latest purchase, I need to access most (all) of the negative gearing/tax offsets as my wife earns zilch.



The loan is purely in my name, but the contract has her name.



I cannot figure out how to make this work.



We have another two properties, I am the only one on the title/contract/loan on one, and we are tenants in common 90% her/10% me on another.



Should we be joint tenants? Can I still claim all the tax?

Tenants in common 99%/1%?

Something else? Despite needing the asset protection, I've decided that I need the cash this year, rather than deferring the tax benefits etc.



The loan has only my name on it.



To complicate it further, we have taken quite a liking to the property and might just move in for 3-5 years. Does this change things or how I should set it up?





Aaargh!



Thanks

What sort of contract?

patio installation in Brisbane

i want to have a flyover patio roof installed just using the basic solar span or stratco materials pretty straight forward. anyone know anyone in brisbane who is a good price?

patio installation in Brisbane

CGT on ppor that's is also IP

I was renting rooms in my principal place of residence and I was classing two thirds of the property as a negatively geared IP and deducting that net loss from my taxable income.

I now no longer do that and just live here myself.

If I sell my house will it be subject to capital gains tax on two thirds of the capital gains (gains made in the time 2/3s was an IP). Or does me living in it now as a purely principal place of residence reset that?

Thank you

CGT on ppor that's is also IP

Looking to buy....what do you think?

G'day all,



Looking to buy a unit from a friend in Mildura. Unit is a 2br, in a complex of 4, single story, fairly close to everything. Looks in fairly decent condition, don't need to spend money on anything. I'm getting a discount, as its from a friend and has not advertised it yet. He's after $80-$85K with a tenant and renting at $135 at the moment.



What do you think? Rates are just under 1000/yr, water is about 650/yr, cant remember body corp but it was pretty reasonable (<$1000/yr). From what I can gather I reckon I can get rent to $150-160 pretty easy in comparing others that are on the market now. Cheapest 2br I can see on the market is $99K for what would seem pretty comparable unit.



This means c/f+ for me pretty close to the start, and will be a nice little earner without expecting much CG.



What does everyone think of this sort of purchase? Any risks I should be thinking about as a regional purchase??????

Looking to buy....what do you think?

Thoughts on Townsville next 12-18months

vendredi 27 mars 2015

Just wondering if anyone has been looking into the Townsville market recently?



Things are pretty slow at the moment but curious as to what people's thoughts are in regard to the market the next 12-18 months? I'm thinking of purchasing something (3 bed house) in the mid $200k's in one of the older suburbs close to the city and doing a cosmetic reno. If I purchase mid next year, I'm just wondering if it will be some time before it see any growth and I might be better off investing somewhere else first?



http://www.townsvillebulletin.com.au...-1227280319117

John McGrath seems to think the next 12 months we will start to see things turn around but given the high unemployment and poor business conditions I can't see this happening in the short term.





Thoughts?

Thoughts on Townsville next 12-18months

Using Equity or Cash for Deposit?

Hi Guys,



I am excited as I have been given full approval for my second IP, paid building and Land deposits and am awaiting settlement for a dual-occupancy house build which will be done in NSW.



I should have enough cash to pay the rest of the deposit by settlement and I will pay LMI. I also have approval to pull about $60K worth of equity out of my first IP.



I would like to get a third IP sooner rather then later, so I was wondering if with this opportunity I should continue to pay my deposit on the new build with cash, but take advantage of bank approval to pull out the other $60K and put back into Offset for IP1, so it is ready and waiting for a IP3 once I am happy where IP2 is at?



Thoughts? and of course thanks for taking time to read.





Cheers

Using Equity or Cash for Deposit?

Engineering is your path to becoming a billionaire!

This has to be one of the most irrelevant articles that I have read in a loooong time.



http://ift.tt/1CWBYKY

Engineering is your path to becoming a billionaire!

Neighbour's Powerline over property

Just thinking about this situation and would there be a problem.



Suppose you have a property, and your property is fed from a powerline from across the road and the lead in line sweaps across your front yard until it connects to the RHS front of your house (facing from the street). The neighbour to the right also has their power connected, but on the LHS front of their house, which means their lead in cable sweeps across your front yard.



Now lets say you got permission to add a carport to the front of your house, towards the LHS where the power connects (and the neighbours power cable passes over. In doing this there could be an issue with the proximity of the power cable and the carport roof. What would happen in this situation, will the power company take power from another pole and relocate at their or neighbours expense. or would it become my problem?

Neighbour's Powerline over property

Bathroom fixtures and fittings

Hello Everybody,

where should I buy vanity units mirror units cheaply in Sydney?



Many thanks in advance;)



Seaford Sunshine

Bathroom fixtures and fittings

Equity manager vs top up loan for subdivision?

Hi



I'm subdividing my IP and the bank is offering the following:



Scenario 1

Equity Manager

Balance $60,000

Interest Rate 5.78%

No set repayment

Loan approval fee $600

Loan administration charge $150 per year



Scenario 2

Re negotiate existing loan with additional $60,000

Interest rate 4.87%

Term remaining 30 years (this can be reduced if you prefer)

Loan approval fee $0

Redraw available



Most likely wont use the full amount (may only come to $40,000 in costs, but thinking I need the extra there just in case)

I'm thinking the 2nd choice, but am I missing anything here (pros - cons)?



Anu help appreciated, thanks...

Equity manager vs top up loan for subdivision?

External door broken

Hi,

The tenant reported the glass in the external door is broken and she doesn't know how it happened.

Does she need to pay for the replacement? It's cheaper to replace the door than the glass.



Thanks for your help.

External door broken

Hampton Park- Melbourne

Hey all!



I'm interested to get people's thoughts on Hampton Park (Melbourne) as a potential area to invest in. The place I'm looking for subdividable property around 350K and build one in back and rent front house.



What are people's thoughts on the area?



MI

Hampton Park- Melbourne

So I purchased this property in Brisbane ..

Think I got a really great deal in a good area .. Close to transport, good rent & capital growth potential .. Area looks nice



Only concern, it's a corner block. I PERSONALLY like corner blocks but would like to put a FENCE around the house but have heard that your not allowed on corner blocks?



Anyhow, very happy with the purchase .. Think Its a good deal :)



http://ift.tt/1H4VSCE

So I purchased this property in Brisbane ..

Issue with leaking shower base

jeudi 26 mars 2015

Hi all,



I got a plumber to come out to my investment property... The plumber did a pressure test and confirmed the leak is coming from the base... He can temporary reseal it but best to do it properly. I'm happy to do it properly but he said he doesn't do that type of work...



He suggested Megaseal but I'm not certain they will do a good job... It's laminate shower walls over a shower base... Who can I contact to have the shower walls and floors removed. Re-waterproofed and then tile it?



I thought a plumber could do this... Does anyone have in contacts in Brisbane?

Issue with leaking shower base

Sliding gate recommendations Brisbane?

We have a sliding gate which is playing up. Callout of about $160 and $40 per 15 minute block means we are likely to be spending minimum $200 and possibly considerably more depending on what is wrong.



Can anybody recommend a sliding gate company in Brisbane.



I think rather than spend any more money on such an old motor, we will go new.

Sliding gate recommendations Brisbane?

New Commercial PM required- Illawarra NSW

Seeking recommendations for a good commercial PM for small commercial premises in Shellharbour NSW- lease is up, tenant wants to re-sign, current agency is pretty useless. Thanks in advance.

New Commercial PM required- Illawarra NSW

nbn

Hi nbn has been rolled out in my area. Existing copper adsl services will be switched off soon. Just wondering wjose responsibility it is to arrange the change over to nbn. Is it the tenant, landlord, pm? Thanks. Also is isp suppose to notify affected people before the switch off date?

nbn

Off the plan in Melbourne... withdraw issue

Hey guys,



Bit of a long story (mainly our stupidity of not researching it properly?)



My family and I live in Sydney and we were looking to invest our money into a property. After looking into Sydney and not finding a place where we can invest, we went to this Australis opening in Rydges Hotel. They were opening up to the market a new Melbourne CBD apartment that will settle in 2017.



It looked great and everything so we decided to negotiate and came to 525k for 1 bedroom + 1 bathroom (no car space) at 40th floor. We thought at the time that it was a good deal for us.



The sales person offered us an independent lawyer to get some advice on the contract. When he came, he offered little help and had to leave half way to some meeting, then came back and didn?t really say much. Anyway we signed a contract of sale of real estate and put in $5000, done deal and everything went smoothly?



Here comes the problem.



After carefully reviewing, we believe we bought it expensive + as we live in Sydney, managing a property in Melbourne with different real estate laws and such were difficult for us to handle + want to invest in Sydney somewhere again (I know, we should've reviewed all of this BEFORE we signed this contract...). So we want to withdraw from the offer and pay 0.2%. We obviously thought the cooling period is 5 days like in Sydney but apparently, it was 3 days in Melbourne. Today is the 4th day (5th as it?s now Friday) and we want to withdraw from this but because we are not really sure what to do?



1) Once the 10% is paid for off the plan + contract of sale of real estate has been signed. Can we withdraw from the offer? Is there any way to withdraw? It is our fault for signing the contract but as I said before, the independent lawyer + sales person were there and they didn?t go through the contract in details + about the cooling period (they went in and out most of the times). They?ve more so just stated that we have to pay on 27th of March & no discussion about the contract itself (which was why we assumed from then to 27th was the cooling period = 5 days). Additionally, I know once it?s signed, normally you cannot cancel but is there special circumstances where we can withdraw (e.g. if we haven?t got the money to pay the 10% yet). If we were allowed to withdraw, I also wonder how much they?ll charge us if we can withdraw?



2) I?m reading the contract at the moment but it doesn?t seem to say anything (direct me if I?m wrong) but I want to know whether we can sell this property (off-the-plan) before settlement. It says in the contract



?3.20 The purchaser further covenants with the vendor that he will not sell, transfer or dispose of the property unless it is a condition of any contract of sale, disposition or transfer that the purchaser, transferee or grantee of the Property and their successors in title are bound by and are required to abide by the terms and conditions as set out by special conditions ??




Am I looking at the right section? I cannot seem to find anything close to talking about selling except this extract and it does not mention whether we can sell the property before settlement.



3) How are Melbourne market atm? We are seriously considering whether this is a good investment or we should pull it out. Rent is very low there I heard but any chance it will go up within 2 years? Can anyone who lives in Melbourne tell me generally about the market there and whether it has the potential to improve within 2 years.



4) Anything we should particularly take note of in the contract? It?s bit hard to read everything obviously and when situations like on Sunday happens where the independent lawyer go out and in, it?s difficult to ask them and get a proper answer.



Really long post.. but please any help would be greatly appreciated!

Thanks

Off the plan in Melbourne... withdraw issue

fengshui and property??

I have read so many stories now about potential buyers wanting a property with good feng shui. Its not just the chinese market, plenty of other south east Asian markets in particular have similar beliefs. How important is this stuff really?

fengshui and property??

Dirty grout

Ive had a unit become vacate recently. Looks like its time for a freshen up. I'm going to repaint and replace the vanity but the whole unit is tiled and the grout is noticeably black compared to the white tiles. Does anyone know of a quick and cheap way of cleaning them?

Dirty grout

Has anyone experienced this kind of tenant?

I don't know whether this is funny or not, but it makes for a good story. I have a tenant. I figured out early on in the tenancy she was into drugs or a drug addict. I don't mind what people do in their spare time as long as they maintain the place and pay the rent.



There have been a couple of times when a handyman has needed to attend the property. One was organised through the re agent. Whilst he was there the tenant walked around with only her underpants on and she was very erratic. That tradesman won't go back to the ppty. Another tradesman from the body corporate knocked on her door at an appointed time and she answered wearing only a see-through negligee and nothing on underneath.



What is she thinking? It's not as though these people turned up unannounced; they had appointments The tradesmen don't want to go back, and I don't blame them. It must be a very uncomfortable experience for them. Has anyone had a tenant similar to this?

Has anyone experienced this kind of tenant?

500K to spend on IP - Northern Beaches?

Hi all,



For the past few months I've been trying to buy an IP on the Northern Beaches (110K+ deposit, 400K+ pre-loan approval).



I've been picky, so in 3 months of searching, I've only found three desirable IPs. But on each occasion I've been out-offered by another buyer (I was willing to pay more, their offers were more timely and persuasive). Meanwhile, prices have risen - to my horror, 2 br units in Northern Beaches are now too expensive for my budget.



My new strategy is:

a) Become more aggressive in making offers

b) Focus on 1BR units in Northern Beaches (mainly because I know the area relatively well)

c) Expand search to encompass other areas (Inner-west, Parra, and possibly even regional areas)



I've been really impressed by the knowledge of posters on this forum, and would like to ask for advice:



* What would be the best NB suburbs to focus on? (Last year, SeeChange mentioned that MonaVale and Narrabeen were good, since they had yet to rise as much as Dee Why -- is that still a valid assessment, or has the state of play changed?)



* Are 1 BR units in NB (or inner-west or Parra) a generally sound investment (assuming low strata, boutique block, good location, etc.)? My understanding is that 2BRs are better since they appeal to more tennants and generate higher yields; does this mean 1BR units should be avoided?



I'm focussing on good-investment units (well-located boutique blocks with no gym/pool/etc.) and my goal is capital growth over next 5-10 years (I know that once the market lulls, it could take another 7-10 years until it peaks again; and I know it's a bad time to buy in Sydney. But my current PPOR is the family home - so I want to buy an IP that I can move into if required {which is another reason I've been reluctant to consider regional areas})



Thanks in advance for your advice



Stephen

500K to spend on IP - Northern Beaches?

Tenant breaking lease - no access

Hi guys, we have a tenant breaking their lease early. The PM said the current tenant will be responsible for paying the rent until we find another tenant. They also said we can't increase the rent amount, as the current tenant is responsible for the rent. No worries, we want to do the right thing.

Current tenant was a bit difficult with allowing access to perform maintenance - things that the tenant had noted required attention during inspections, but wouldn't allow access to rectify - odd. So we decided in the interests of our sanity, we would just wait until they leave and do what we can then.

PM called today and said they've found another tenant, they will move in 4 weeks after the current tenant moves out. Good stuff.

But the PM said that we can't do anything while it's vacant or the current tenant won't be responsible for the rent any more. Am I thinking of this the wrong way?

#1 If I was the current tenant, I would have allowed access as it would increase the rentability, hopefully decreasing the amount of time that it was vacant.

#2 I would think that painting etc... while it's going to be vacant anyway would be common sense.

Does anyone have any experience with this type of situation?

Tenant breaking lease - no access

First time Sub Divider

mercredi 25 mars 2015

Hi all, I just signed up with this Forum yesterday as I am looking to sub divide a property in North Brisbane. I was initially looking to buy, renovate and sell. However saw a property that was really affordable for me to sub divide. Does anybody have any knowledge of how to go about doing a subdivision - 1 block split in to two?



Thank you

First time Sub Divider

Lifting LVR to 80% to reduce taxable income

I have a negatively geared IP with a loan amount of $250k, valued at $450k. Rental income is $310 per week.



I'd like to borrow $100k to invest elsewhere. My question is, what are my restrictions on this? If I increase my loan (to $350k) my repayments will go up and as such, my negative gearing will be higher.



What's the legalities here? I suspect if I borrow to re-invest into the same property it's okay (ie. new deck or extension) but what about if I want to pull my money out to use it on something else?



Thanks

Lifting LVR to 80% to reduce taxable income

Land Tax

Hi i'm in the last day of the cooling off period and i'v only just been advised that the land tax was ticked yes meaning i will need to pay an adjustment even though i'm under the threshold.



is there any way out of this?



is there a way to find out how much it will be?

Land Tax

Think your kids are too young to start a business?


Think your kids are too young to start a business?

Defence Housing

Hi All-

Am also looking at Defence Housing in the regional areas. Guaranteed rental plus there is bound to be some capital growth (may not be at the same level as urban areas).



Any thoughts on this? Would appreciate your expert comments

Defence Housing

Finally, it has been confirmed

I am officially great. You may now refer to me as Admiral FancyPants.



(scroll down to where Cafe Au Lait is duscussed)




Finally, it has been confirmed

Starter investor seeking advices for investing apartments

Hey guys. I have just registered this forum and I?m very new to property investment. I want to ask for advices from you experienced investors about investing an off plan apartment in Brisbane. planning settle date is middle 2017



The reason that I ask about this topic is because a friend of mine (not close), who is also a property sales was trying to sell me this off plan apartment in Newstead Brisbane. I live in Sydney however I think properties in Sydney now are too high for investment. Brisbane looks like a better choice but I can only invest on units because I cannot travel to Brisbane from time to time to inspect houses.



The reasons my friend stated that Newstead is good to invest are as follows:

Bank of Queensland moved their HQ to Newstead. Also the Gaswork area is set to carry on a big renewal project by the government and some other corporations are moving here too. It should bring more people to work in this area who will potentially rent/buy a property in this area. Also the transportation here is good and good shopping malls nearby.



This suburb reminds me Zetland/Green Square in Sydney. I have a friend who bought a two bed room off plan apartment for 690,000 at the beginning of 2012 and sold it for 850,000 or 870,000 when it was settled Dec/2014. That is 160,000 capital gain with 70,000 cash. Wondering if similar case can happen to Brisbane.



Newstead is marked as High risk on Brisbane flood area map, will this be an important factor to not to buy the property? Also, generally should I invest a one bedroom or two bed rooms in this type of property?



I did a rough calculation looks like if both the yield return and loan interest is 5%, the rent income and loan interest can make an even (because I need to spend 8% of rent income to agents since I live in Sydney). Then I think the only way to make money from this investment will be from capital gain.



I see most people are saying to avoid units in inner city I wonder if it is the same case for this one in Newstead? What are the bad things to invest such a property here?



To be honest I don't know much about property investment before. Everyone please go easy on me  but please correct anything I mentioned in this post and shed some light on this topic. thanks in advance.

Starter investor seeking advices for investing apartments

Leased Price Commercial History

Is there out there a way to review what something leased for?



There are tools/sites etc for for Sold or Rented for Residential but seems from quick lookup nothing about what something leased for?



All that Real Commercial returns is pretty useless - i.e a query for a suburb just says leased....



http://ift.tt/1FUG9Ya

Leased Price Commercial History

A Positive Post for the Day

Dear SS's



I had a wonderful experience today. We manage several villas with older adults residing with minimal family and/or informal support networks and often advocate on their behalf (or fix little things around their homes as family often do for older people).



We managed to successfully advocate for air conditioning systems to be placed into each villa as the ladies were so overheated in this climate (in addition to being very frail in and out of hospital). The gentleman who installed the systems (Matthew from MCS Electrical - Brisbane) is our sparky and did a fantastic job installing the systems with his team at a great price - Matt and his team cleaned up beautifully after themselves, interacted respectfully with the ladies and double checked all was in order before leaving ie teaching the ladies how to use the systems and testing the systems.



Upon leaving Martin was confronted by very emotionally touched older ladies who shed tears of joy as they suffered for years in the heat.



A huge learning for me is what a difference air conditioning and responding to maintenance requests makes to tenants quality of life - particularly vulnerable older tenants :)

A Positive Post for the Day

Settlement without stamp duty

We are looking to settle a property in April but the banks have said we need the stamp duty as we will go over LVR if they pay for it



My questions is can the house settle without the stamp duty?

Will settlement crash if I do not have the stamp duty ready in the bank or can the bank not finalise the loan without the stamp duty ready?

Settlement without stamp duty

Weird Domain emails

I used to subscribe to emails for property listings in areas I was researching.



Then I unsubscribed and the emails stopped.



But just recently the emails resumed.



The weird thing about them is they have auction dates of 1 January 0001 at 12am



And the email is (c) 2011.



The links to the Domain website listings seem to work as well.



Anyone else getting them?

Weird Domain emails

GST on old resendtial unit sale

Hi All,



I need an urgent advice with my new PPOR purchase.

I am purchasing a PPOR which is an established residential property built around 1970. Will there be any GST applicable on this sale ? If yes, how much will be GST applicable ?



The reason for my concern is, the sale contract has the following clause which the vendor is not willing to remove :

"the purchase price is not inclusive of GST. If the vendor becomes liable for any GST, the purchaser to pay GST equivalent amount."



Can you please help in this regard?



Thanks in advance.

The cooling off is expiring tomorrow so appreciate your response on this.

GST on old resendtial unit sale

Old surrounded by new

I'd seen an older house still in good condition selling for around the 370k mark and found out that a large developer has bought out majority of the suburb because they are housing commission homes and now they are selling off the land for people to build new houses and about 20% is left, with half that I would say private owners..They're making a new estate with older houses still in the estate..



What would happen to the few streets that still have older houses on larger blocks 600sqm when the estate has new houses on smaller blocks 350-450sqm worth 470-550k (for the whole house)?



Would the values of the older house go up, down or not change at all? Would the rents also decrease?



I can't really say where I'm looking as I'm considering making an offer this weekend..

Old surrounded by new

Smartphones

mardi 24 mars 2015

Hi everyone, I know there are threads on phones, but they become obsolete pretty soon after they're posted. I'm going to be in the market for a smartphone soon. I've never had one. Any phone geeks on here that can recommend one? iPhone not an option, not in a million years.



Essentially, I am going to be using it primarily for my business - so something that is good with email and Skype (or Skype type programs) and will seamlessly transfer data from the phone to my laptop and vice versa (think Bit Torrent Sync). For example, if I get an email with attachments, d/l the attachment to the phone, then the file gets synced to my laptop.



As I am going to be spending the majority of my time overseas, having tech that is stable and reliable enough to keep in contact with my clients is of the highest priority.



I won't be using it for surfing the 'net and things like that - that's what my laptop is for - as I find looking at phone screens for more than a few minutes at a time difficult.



Thanks in advance for all suggestions!

Smartphones

Recommendations for learning about financing options

Hi Guys,



First post and new to everything here so not sure if there is already an existing thread somewhere...but basically I'm trying to get a handle on the financing options that exist, the role of offset accounts, LVI, LMI and all these abbreviations etc. and piece together the pros and cons just to get a better handle on this aspect of property investment.



So are there any books, online resources, courses, existing threads etc? that give a good, simple explanation of how financing works in Australia?



Thanks a lot guys!!!

Recommendations for learning about financing options

How much debt do you carry?

A pretty hard question I think?

How much debt do you carry? How much debt is too much debt?

I guess it varies as to where you are in the buy/sell process. If you have just built and are waiting to sell developments $1mil+ Debt isn't too far off the mark.



Anyway where do you draw the line?

How much debt do you carry?

Can a bank refuse to give you redraw funds?

I obtained a top up from a loan with the blue smurfs to use for another project. I've now received that money back from the project and want to offset it back to that account. I don't want to put it in the linked offset account as it is also our everyday transaction account. On speaking with the bank, they advised that there is no guarantee I can get the funds back out of the loan account from redraw when I need them again. Something about the funds required being higher than they would usually allow.



Is this standard for redraw or is it the exception that your redraw funds aren't necessarily yours to withdraw again for the next project? FYI it's under 100K so it's not a massive amount.

Can a bank refuse to give you redraw funds?

Rates adjustment on a subdivided property?

I've just sold a property in Brisbane. It settled 2 weeks after titling was issued on the 2-lot subdivision. So I still own half of the original block. I asked my conveyancer (solicitor) about rates/water adjustment and she said that as the rates were paid for as one lot at the last rates notice that there is no adjustment for rates that have been paid in advance on the sale of half of that original block.



Does anyone know if that is actually the case?

Rates adjustment on a subdivided property?

if you have $1mil, how would you invest your money wisely?

As the title says, I'd like to know how you would invest it wisely in property market? Say if you are someone witj average income $60k and suddenly won a lotto or receive massive inheritance or workers comp, etc. Let's not go into buying ferraris or mcmansion house. Just investing and limited to property in Australia.



Details would be nice such as Would you buy IP? Cashflow? Capital gain? Or commercial IP? How many properties? And looking at current market, where would you invest? New or existing? How would you finance it?

if you have $1mil, how would you invest your money wisely?

Valuation - Connecting Sites

Quick question,

If you own 2 connecting sites under your name but on seperate titles, can you have them valued together as 1?



Example - I own a hous in an inner city suburb and next door is a small lot with a tiny house that needs demolishing.

If I purchased that site it would allow for a premium sized lot for that suburb making it significantly more valuable (zoned mixed).

Valuation - Connecting Sites

IP In Melbourne under $375K

Hi,



Just about to start my search, just looking for some advice on the type of property that might be best for CG in Melbourne at around the $375K range. Its not much to work with I know.



Does anyone have any opinions if id be better at trying to grab a small apartment in a more expensive area such as Carnegie/Hawthorn/Malvern etc if thats even possible or perhaps look a bit further out for something bigger?



CG is my primary focus over 7-10 years and have been out of the melb market for a few years



Many thanks

IP In Melbourne under $375K

If Sydney Market Dropped by 50%?

Hypothetical Question - If Sydney Market Dropped by 50% say in the next 2 years how do you think it would effect other Australian cities?



Let's say apartments and houses in Sydney lost value on average of 50%. So a $700,000 property dropped to be valued at $350,000 for example.



3 Examples:


  1. Brisbane $300,000 apartment

  2. Newcastle NSW $300,000 apartment

  3. Perth WA $300,000 apartment




what do you think would happen with these 3 properties, would they also drop around 50% or what?

If Sydney Market Dropped by 50%?

Houses selling before even advertised for sale

Market has to be hot at least in this part of Melbourne. I spoke with REA and according to him a lot of houses are selling privately before even hitting the open market in our neighbourhood. Also I know at least 3 houses that changed hands on this way after Xmas. Anyone else has noticed the same?

Houses selling before even advertised for sale

Has anyone used propertybuyer?

Has anyone used the buyer's agent services of "propertybuyer" in Sydney. Any thoughts?

Has anyone used propertybuyer?

What is wedding food?

What would you like on the menu as a guest?



MTR

What is wedding food?

Who is responsible?

Just wanted some feedback.

The hot water system is in a kitchen cupboard which is never opened. The system was leaking without me knowing about, I'm guessing for a week or two. I saw the odd cockroach which I thought was a bit weird but being busy, I didn't think much of it until I came home after being away a few days to a horrid smell. The culprit was found as well as more cockroaches I'd like to mention.

The landlord got the hot water system replaced immediately but I have been struggling for months to get rid of the cockies. The kitchen is sold old that there are cracks and crevices everywhere. The landlord and real estate say this is my problem and I'm responsible for pest control.

Thoughts?

Who is responsible?

Shorting Aussie Stocks - Does anyone do it?

My interest lies mainly in mid/smallcap stocks.



If you have done this in the past, please share.



What are the requirements? Are there mountains of paperwork to fill in before you can proceed?



Thank you in advance.

Shorting Aussie Stocks - Does anyone do it?

So what does everyone here do for a living?

Just curious?

So what does everyone here do for a living?

Would you do Termidor treatment after this report?

Hi all,



I was wondering if someone with more experience with termites can recommend if I should do the recommended termite treatment which will cost around $4000



ACCESS

Are there any Area(s) and/or Section(s) to which Access should be gained?

? No, read this report in its entirety

TIMBER PEST ACTIVITY

Were active subterranean termites (live specimens) found?

? No, read this report in its entirety

Was visible evidence of subterranean termite workings or damage found?

? Yes, read this report in its entirety

Was visible evidence of borers of seasoned timbers found?

? No, read this report in its entirety

Was evidence of damage caused by wood decay (rot) fungi found?

? Yes, read this report in its entirety

Important: We strongly recommend the purchaser make inquiry from the

vendor about Timber Pests and in particular Termites for this property.

For complete and accurate information you must refer

to the following complete Visual Timber Pest Report.

VISUAL TIMBER PEST REPORT

1. Brief Description of Structure(s) Inspected

1.1 Building Type

? Free standing House

? Used for domestic purposes

? Low Set

1.2 Construction

? External Walls

Chamfer board

? Floor

Timber with concrete areas

? Piers

Concrete piers & brick base

? Roof

Fibro

Any building or part of a building that is constructed on a concrete slab is always more susceptible to

termite attack because of possible concealed termite entry.

1.3 Areas Inspected

Only structures, fences &/or trees within 50m of the building but within the property boundaries were

inspected.

The areas inspected were:

? The subfloor

? The building interior

? The building exterior

? The roof space

? The garage

? The site

? Outbuildings

? Fences

Areas NOT Inspected

No inspection was made, and no report is submitted, of inaccessible areas. These include, but may not

be limited to, cavity walls, concealed frame timbers, eaves, flat roofs, fully enclosed patios subfloors,

soil concealed by concrete floors, fireplace hearths, wall linings, landscaping, rubbish, floor coverings,

furniture, pictures, appliances, stored items, insulation, hollow blocks/posts, etc.

1.4 Other Area(s)* to which REASONABLE ACCESS for Inspection was NOT AVAILABLE and the

Reason(s) why include:

? All accessible areas were inspected

1.5 Area(s) in which Visual Inspection was Obstructed or Restricted and the Reason(s) why include:

? Interior due to wall and floor coverings

? Roof Void due to insulation

Please note since a complete inspection of the above areas was not possible, timber pest activity

and/or damage may exist in these areas.

1.6 High Risk Area(s) to which Access should be gained, or fully gained, since they may show

evidence of Timber Pests or damage:

? None

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 7 of 17

1.7 Was the property furnished at the time of inspection?

? No

2. SUBTERRANEAN TERMITES

2.1 Were active termites (live insects) present at the time of the inspection:

? None found at the time of the inspection

2.2 There were no termite nests located during the inspection.

2.3 Visible evidence of subterranean termite workings and/or damage was found at the time of

inspection. It was in, but not necessarily limited to the following location(s) -

? Subfloor - scrap timbers on the ground

? Yard - tree stumps

NOTE: Where evidence of termite activity was found in the grounds then the risk to buildings is very

high. A treatment to eradicate the termites and to protect the building(s) should be carried out. Where

the evidence of termite workings was found in the grounds or the building(s) then the risk of a further

attack is very high.

2.4 Was any evidence of timber damage visible?

? Yes

? Whilst we claim no expertise in building, moderate termite damage was visible (Refer to 2.3).

VERY IMPORTANT:

If live termites or any evidence of termite workings or damage was reported above within the building(s)

or in the ground and fences then it must be assumed that there may be concealed termite activity

and/or timber damage. This concealed activity or damage may only be found when alterations are

carried out such as when wall linings, cladding or insulation are removed or if you arrange for an

invasive inspection. We claim no expertise in structural engineering or building. We strongly

recommend that you have a qualified person such as a Builder, Engineer, Architect or other qualified

expert in the building trade determine the full extent of the damage, if any. This may require an invasive

inspection. We take no responsibility for the repair of any damage whether disclosed by this report or

not. (See Terms & Limitations).

Where visual evidence of termite workings and/or damage is reported above, but no live termites were

present at the time of inspection, you must realise that it is possible that termites are still active in the

immediate vicinity and the termites may continue to cause further damage. It is not possible, without

benefit of further investigation and a number of inspections over a period of time, to ascertain whether

any infestation is active or inactive. Active termites may simply have not been present at the time of

inspection due to a prior disturbance, climatic conditions, or they may have been utilising an alternative

feeding source. Continued, regular, inspections are essential. Unless written evidence of a termite

protection program in accord with "Australian Standard 3660" with ongoing inspections is provided, you

must arrange for a treatment in accord with "Australian Standard 3660" to be carried out immediately to

reduce the risk of further attack.

General remarks: A more thorough INVASIVE INSPECTION is available. Where any current visible

evidence of Timber Pest activity is found it is strongly recommended that a more invasive inspection is

performed. Trees on the property have been visually inspected for evidence of termite activity to a

height of 2m where access was possible and practical. It is very difficult, and generally impossible to

locate termite nests since they are underground and evidence in trees is usually well concealed. We

therefore strongly recommend that you arrange to have trees test drilled for evidence of termite nests.

2.5 There were no signs or evidence of a previous termite treatment on the property.

WARNING: If evidence of drill holes in concrete or brickwork or other signs of a possible previous

treatment are reported then the treatment was probably carried out because of an active termite attack.

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 8 of 17

Extensive structural damage may exist in concealed areas. You should have an invasive inspection

carried out and have a builder determine the full extent of any damage and the estimated cost of repairs

as the damage may only be found when wall linings etc are removed.

Normally if a termite treatment has been carried out then a durable notice should be located in the

meter box indicating the type of termite shield system, treated zone or combination has been installed.

2.6 Durable Notice (Termite Management Notice)

? No durable notice was found during the inspection

This firm can give no assurances with regard to work that may have been previously performed by other

firms. You should obtain copies of all paperwork and make your own inquiries as to the quality of the

treatment, when it was carried out and warranty information. In most cases you should arrange for a

treatment in accord with "Australian Standard 3660" be carried out to reduce the risk of further attack.

3. BORERS OF SEASONED TIMBER

Lyctus brunneus (powder post beetle) is not considered a significant pest of timber. Damage is

confined to the sapwood so treatment or timber replacement is not usually required. However, you

should have a building expert investigate if any timber replacement is required.

Anobium punctatum (furniture beetle) and Calymmaderus incisus (Queensland pine beetle) must

always be considered active, unless proof of treatment is provided, because, unless the timber is

ground up, one cannot determine conclusively if activity has ceased. Total timber replacement of all

susceptible timbers is recommended. A secondary choice is treatment. However, the evidence and

damage will remain and the treatment may need to be carried out each year for up to three years.

3.1 Was visible evidence of borers found?

? None found at the time of the inspection

? No damage was found at the time of inspection

4. FUNGAL DECAY CAUSED BY WOOD DECAY FUNGI

4.1 Was evidence of wood decay fungi (wood rot) found?

? Yes, found in, but not necessarily limited to -

o Subfloor - flooring timbers under wet areas only

o Interior - skirting boards in bathroom

o Exterior - chamferboards

o Fences

4.2 Extent of damage

? The damage is considered to be moderate

? No evidence of defibration (delignification) was found in timbers on the property

We claim no expertise in building and if any evidence of fungal decay or damage is reported you should

consult a building expert determine the full extent of damage and the estimated cost of repairs or timber

replacement (See Terms & Limitations).

5. CONDITIONS THAT ARE CONDUCIVE TO TIMBER PESTS

5.1 Water leaks

Water leaks, especially in or into the subfloor or against the external walls e.g. leaking taps, water

tanks or down pipes and or guttering, increases the likelihood of termite attack.

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 9 of 17

Leaking showers or leaks from other ?wet areas? also increase the likelihood of concealed termite

attack. These conditions are also conducive to borer activity and wood decay.

? Water leakage was detected in the following location(s) -

o Roof guttering - Repair or replace damage house guttering as constant moisture is

conducive to termite activity and will reduce the effect of any chemical termite treatment

o Rusted downpipes - Direct downpipes to the storm water as constant moisture is

conducive to termite activity and will reduce the effect of any chemical termite treatment

We claim no expertise in building and if any leaks were reported then you must have a plumber or other

building expert determine the full extent of damage and the estimated cost of repairs.

5.2 Hot water services and air conditioning units

Hot water services and air conditioning units which release water alongside or near to building walls

need to be connected to a drain (if this is not possible then their water outlet needs to be piped

several meters away from the building) as the resulting wet area is highly conducive to termites.

Is there a need for this work to be carried out?

? No, as both are connected to a drain or piped away

5.3 Moisture

? Our electronic moisture meter has detected high levels in the -

o Reverse side wall of the main shower

High moisture readings can be caused by any one of the following: poor ventilation, ineffective

drainage, leaking pipes, leaking roofs, defective flashing or by concealed termite activity. The areas of

high moisture should be investigated by way of an invasive inspection. If high moisture was reported

then you must have a building expert investigate the moisture and its cause and determine the full

extent of damage and the estimated cost of repairs.

5.4 Drainage

Poor drainage, especially in the subfloor, greatly increases the likelihood of wood decay and termite

attack. We claim no expertise in plumbing and drainage, however it appears that drainage is generally:

? Unable to comment

5.5 Ventilation

Ventilation, particularly to the sub-floor region is important in minimising the opportunity for Timber

Pests to establish themselves within a property. We claim no expertise in building, however, the

ventilation appears to be generally:

? Adequate

5.6 Slab Edge Exposure

Where external concrete slab edges are not exposed there is a high risk of concealed termite entry. In

some buildings built since July 1995 the edge of the slab forms part of the termite shield system. In

these buildings an inspection zone of at least 75mm should be maintained to permit detection of termite

entry. The concrete edge should not be concealed by render, tiles, cladding, flashings, adjoining

structures, paving, soil, turf or landscaping etc. Where this is the case you should arrange to have the

slab edge exposed for inspection. Concealed termite entry may already be taking place but could not be

detected at the time of the inspection. This may have resulted in concealed timber damage.

Does the slab edge inspection zone fully comply?

? Not applicable

5.7 Weep holes in external walls: It is very important that soil, lawn, concrete paths or pavers do not

cover the weep holes. Sometimes they have been covered during the rendering of the brick work.

They should be clean and free flowing. Covering the weep holes in part or in whole may allow

undetected termite entry.

Were the weep holes clear allowing the free flow of air?

? Not applicable

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 10 of 17

5.8 Termite Shields (Ant Caps)

Termite Shields (Ant Caps) should be in good order and condition so termite workings are exposed

and visible. This helps stop termites gaining undetected entry. Joins in the shielding should have

been soldered during the installation. Whenever it is observed that the joins in the shielding have not

been soldered then the shielding must be reported as inadequate. It may be possible for a builder to

repair the shielding. If not, a chemical treated zone may need to be installed to deter termites from

gaining concealed access to the building. Missing, damaged or poor shields increase the risk of

termite infestation.

We claim no expertise in building. However, in our opinion the termite shields appear to be:

? Inadequate, damaged, corroded and missing.

If considered inadequate a builder or other building expert should be consulted. Other physical shield

systems are not visible to inspection and no comment is made on such systems.

5.9 Other areas and/or situations that appear conducive to (may attract) subterranean termite

infestation

? Accessibility - moderate

? Vacant property

? Timbers in ground contact - untreated fences, tree stumps, scrap timbers on the ground in the

subfloor area

? Non-durable timbers - same as above

? Bridging of the barriers - front and rear steps covering chamferboards.

5.10 Comments on other Conducive Conditions

? Vegetation against structures increases the risk of hidden termite entry and should be

removed or moved away from the structures.

5.11 Other information & Recommendations

? Repair or replace rusted downpipes and house gutters as constant moisture is conducive to

termite activity and will compromise any chemical termite barrier

? Remove soil, mulch and vegetation from fences

? Remove all untreated garden timbers, scrap timbers and tree stumps from immediate yard

area and subfloor

? Tree stumps should be removed as they provide ideal conditions for termites to nest

? Remain vigilant where chamfer boards are covered by concrete step at front and rear

? Due to the age of the property, termite damage, inadequate ant capping and no evidence of a

recent termite treatment, we recommend a suitable termite management program be installed

? Regular inspections must be carried out by a licensed pest technician at a minimum of once

every 6 months.

? Evidence of mould was found during the inspection. Please refer to Item 5 in the Terms and

Conditions section of this report

o Detected in bathroom ceiling.

Refer to Important Maintenance Advice Regarding IPM below.

6. OVERALL ASSESMENT OF THE PROPERTY

Where the evidence of live termites or termite damage or termite workings (mudding) was found in the

building(s) then the risk of a further attack is extremely high. Where evidence of live termites or termite

damage or termite workings was found in the grounds but not in the buildings then the risk to buildings

must be reported as high to extremely high.

6.1 At the time of the inspection the DEGREE OF RISK OF SUBTERRANEAN TERMITE

INFESTATION to the overall property was considered:

? Moderate to high

6.2 Subterranean termite treatment recommendation

A management program in accord with AS 3660-2000 to protect against subterranean termites is

considered to be:

? Strongly recommended

? A termite treatment proposal is attached

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 11 of 17

6.3 Future Inspections

AS 3660.2-2000 recommends that inspections be carried out at intervals no greater than annually and

where timber pest ?pressure? is greater, this interval should be shortened. Inspections WILL NOT stop

timber pest infestations; however, the damage which may be caused will be reduced when the

infestation is found at an early stage.

Due to the degree of risk of subterranean termite infestation noted above and all other findings of this

report, we strongly recommend that a full inspection and written report in accord with AS 4349.3 or AS

3660.2-2000 is conducted at this property every:

? 6 months

IMPORTANT MAINTENANCE ADVICE REGARDING INTEGRATED PEST MANAGEMENT (IPM) FOR

PROTECTING AGAINST TIMBER PESTS: Any structure can be attacked by Timber Pests. Periodic

maintenance should include measures to minimise possibilities of infestation in and around a property.

Factors which may lead to infestation from Timber Pests include situations where the edge of the concrete

slab is covered by soil or garden debris, filled areas, areas with less than 400mm clearance, foam insulation

at foundations, earth/wood contact, damp areas, leaking pipes, etc; form-work timbers, scrap timber, tree

stumps, mulch, tree branches touching the structure, wood rot, etc. Gardens, pathways or turf abutting or

concealing the edge of a concrete slab will allow for concealed entry by timber pests. Any timber in contact

with soil such as form-work, scrap timbers or stumps must be removed from under and around the buildings

and any leaks repaired. You should endeavour to ensure such conditions DO NOT occur around your

property.

We further advise that you engage a professional pest control firm to provide a suitable termite

management program in accord with AS 3660 to minimise the risk of termite attack. There is no way of

preventing termite attack. Even AS 3660 advises when a complete termite management system is

installed in accordance with AS 3660.1-2000 for pre-construction termite work or 3660.2-2000 for postconstruction

termite work and the Australian Pesticides and Veterinary Medicines Authority (APVMA)

product label directions are followed precisely, termites may still bridge the management system.

However, if the labels directions are followed and the Standard adhered to, and bridging occurs, evidence

of the termite ingress will normally be evident to the inspector. Therefore regular inspections in line with

the recommendations in this report are essential in addition to any suitable termite management system

you install.

You should read and understand the following important information. It will help explain what is involved in

a timber pest inspection, the difficulties faced by a timber pest inspector and why it is not possible to

guarantee that a property is free of timber pests. It also details important information about what you can

do to help protect your property from timber pests. This information forms an integral part of the report.

REASONABLE ACCESS: Only areas where reasonable access was available were inspected. The

Australian Standard AS 3660 refers to AS 4349.3-1998 which defines reasonable access. Access will not

be available where there are safety concerns, or obstructions, or the space available is less than the

following:

ROOF VOID ? the dimensions of the access hole must be at least 450mm x 400mm, and,

reachable by a 2.1M step ladder or 3.6M ladder, and, there is at least 600mm x 600mm of space

to crawl;

SUBFLOOR ? the dimensions of the access hole must be at least 500mm x 400mm and, there is

at least 400mm of space to crawl beneath the lowest bearer, or, 500mm beneath the lowest part of

any concrete floor;

ROOF EXTERIOR ? must be accessible by a 3.6M ladder

Reasonable access does not include the use of destructive or invasive inspection methods. Nor

does reasonable access include cutting or making access traps, or moving heavy furniture or

stored goods.

A MORE INVASIVE PHYSICAL INSPECTION IS AVAILABLE AND RECOMMENDED: As detailed

above, there are many limitations to this visual inspection only. With the permission of the owner of the

premises we WILL perform a more invasive physical inspection that involves moving or lifting: insulation,

stored items, furniture or foliage during the inspection. We WILL physically touch, tap, test and when

necessary force/gouge suspected accessible timbers.

? Copyright RAPID Solutions 04/2002 (All States Except ACT) Version: 12.08 V2-0 Page 12 of 17

We WILL gain access to areas, where physically possible and considered practical and necessary by way

of cutting traps and access holes. This style of report is available by ordering with several days notice.

Inspection time for this style of report will be greater than for a VISUAL INSPECTION. It involves

disruption in the case of an occupied property, and some permanent marking is likely. You must arrange

for the written permission of the owner who must acknowledge all the above information and confirm that

our firm will not be held liable for any damage caused to the property. A price is available on request.

CONCRETE SLAB HOMES: Homes constructed on concrete slabs pose special problems with respect to

termite attack. If the edge of the slab is concealed by concrete paths, patios, pavers, garden beds, lawns,

foliage, etc then it is possible for termites to affect concealed entry into the property. They can then cause

extensive damage to concealed framing timbers. Even the most experienced inspector may be unable to

detect their presence due to concealment by wall linings. Only when the termites attack timbers in the roof

void, which may in turn be concealed by insulation, can their presence be detected. Where termite

damage is located in the roof it should be expected that concealed framing timbers will be extensively

damaged. With a concrete slab home it is imperative that you expose the edge of the slab and ensure that

foliage and garden beds do not cover the slab edge. Weep holes must be kept free of obstructions. It is

strongly recommended that you have a termite inspection in accordance with AS 3660.2 carried out as

recommended in this report.

SUBTERRANEAN TERMITES: No property is safe from termites! Termites are the cause of the greatest

economic losses of timber in service in Australia. Independent data compiled by State Forestry shows 1 in

every 5 homes is attacked by termites at some stage in its life. More recent data would indicate that this is

now as high as 1 in every 3. Australia?s subterranean termite species (white ants) are the most destructive

timber pests in the world. In fact it can take ?as little as 3 months for a termite colony to severely damage

almost all the timber in a home?.

How Termites Attack your Home. The most destructive species live in large underground nests

containing several million timber destroying insects. The problem arises when a nest matures near

your home. Your home provides natural shelter and a food source for the termites. The gallery

system of a single colony may exploit food sources over as much as one hectare, with individual

galleries extending up to 50 metres to enter your home, where there is a smorgasbord of timber to

feast upon. Even concrete slabs do not act as a barrier; they can penetrate through cracks in the slab

to gain access to your home. They even build mud tubes to gain access to above ground timbers. In

rare cases termites may create their nest in the cavity wall of the property without making ground

contact. In these cases it may be impossible to determine their presence until extensive timber

damage occurs.

Termite Damage. Once in contact with the timber they excavate it often leaving only a thin veneer

on the outside. If left undiscovered the economic species can cause many thousands of dollars

damage and cost two to five thousand dollars (or more) to treat.

Subterranean Termite Ecology. These termites are social insects usually living in underground

nests. Nests may be in trees or in rare instances they may be in above ground areas within the

property. They tunnel underground to enter the building and then remain hidden within the timber

making it very difficult to locate them. Where timbers are concealed, as in most modern homes, it

makes it even more difficult to locate their presence. Especially if gardens have been built up

around the home and termite barriers are either not in place or poorly maintained. Termites form

nests in all sorts of locations and they are usually not visible. There may be more than one nest on

a property. The diet of termites in the natural environment is the various hardwood and softwood

species growing throughout Australia. These same timbers are used in buildings. Worker termites

move out from their underground nest into surrounding areas where they obtain food and return to

nurture the other casts of termites within the nest. Termites are extremely sensitive to temperature,

humidity and light and hence cannot move over ground like most insects. They travel in mud

encrusted tunnels to the source of food. Detection of termites is usually by locating these mud

tunnels rising from the ground into the affected structure. This takes an expert eye.

Termite barriers protect a building by forcing termites to show themselves. Termites can build mud

tunnels around termite barriers to reach the timber above. The presence of termite tracks or leads does

not necessarily mean that termites have entered the timber though. A clear view of walls and piers and

easy access to the sub-floor means that detection should be fairly easy. However many styles of

construction do not lend themselves to ready detection of termites. The design of some properties is such

that they make the detection by a pest inspector difficult, if not impossible. The tapping and probing of

walls and internal timbers is an adjunct or additional means of detection of termites but is not as reliable

as locating tracks.

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The use of a moisture meter is a useful aid for determining the presence of termites concealed behind thin

wall panels, but it only detects high levels of activity. Older damage that has dried out will not be recorded.

It may also provide false readings. Termite tracks may be present in the ceiling space however some

roofs of a low pitch and with the presence of sisalation, insulation, air conditioning ductwork and hot water

services may prevent a full inspection of the timbers in these areas. Therefore since foolproof and

absolute certain detection is not possible the use of protective barriers and regular inspections is a

necessary step in protecting timbers from termite attack.

BORERS OF SEASONED TIMBERS: Borers are the larvae of various species of beetles. The adult

beetles lay their eggs within the timber. The eggs hatch out into larvae (grubs) which bore through the

timber and can cause significant structural damage. The larvae may reside totally concealed within the

timber for a period of several years before passing into a dormant pupal stage. Within the pupal case they

metamorphose (change) into the adult beetle which cuts a hole in the outer surface of the timber to

emerge, mate and lay further eggs to continue the cycle. It is only through the presence of these

emergence holes, and the frass formed when the beetles cut the exit holes that their presence can be

detected. Where floors are covered by carpets, tiling, or other floor coverings and where no access to the

underfloor area is available it is not possible to determine whether borers are present or not. This is

particularly the case with the upper floors of a dwelling.

Borers of ?green? unseasoned timber may also be present. However these species will naturally die out as

the timbers dry out in service. Whilst some emergence holes may occur in a new property it would be

unusual for such a borer to cause structural damage, though the exit holes may be unsightly.

Anobium borer (furniture beetle) and Queensland pine borer. These beetles are responsible

for instances of flooring collapse, often triggered by a heavy object being placed on the floor (or a

person stepping on the affected area!) Pine timbers are favoured by this beetle and, while the

sapwood is preferred, the heartwood is also sometimes attacked. Attack by this beetle is usually

observed in timbers that have been in service for 10-20 years or more and mostly involves flooring

and timber wall panelling. The frass from the flight holes (faeces and chewed wood) is fine and

gritty. Wood attacked by these borers is often honeycombed.

Lyctus borer (powder post beetle). These borers only attack the sapwood of certain susceptible

species of hardwood timber. Since it is a requirement that structural timbers contain no more than

25% Lyctus susceptible sapwood these borers are not normally associated with structural

damage. Replacement of affected timbers is not recommended and treatment is not approved.

Where decorative timbers are affected the emergence holes may be considered unsightly in which

case timber replacement is the only option. Powder post beetles mostly attack during the first 6-12

months of service life of timber. As only the sapwood is destroyed, larger dimensional timbers

(such as rafters, bearers and joists) in a house are seldom weakened significantly to cause

collapse. In small dimensional timbers (such as tiling and ceiling battens) the sapwood may be

extensive, and its destruction may result in collapse. Replacement of these timbers is the only

option available.

TIMBER DECAY FUNGI: The fruiting bodies of wood decay fungi vary in size, shape and colour. The

type of fungi encountered by pest controllers usually reside in poorly ventilated subfloors, below wet areas

of the home, exterior timbers and in areas that retain water in the soil. The durability and type of timbers

are factors along with the temperature and environment. Destruction of affected timbers varies with the

symptoms involved. Removal of the moisture source usually alleviates the problem. Fungal decay is

attractive to termites and if the problem is not rectified it may well lead to future termite attack.

Would you do Termidor treatment after this report?

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