Most financial institutions place restrictions on lending in relation to genuine 1 bedroom apartments based on internal floor area. This policy is ridiculous and archaic. The fact that these financial institutions place such a high emphasis on floor area only demonstrates that they do not understand the fundamentals of real estate, an amazing reality given…
I have always prided myself on being extremely discerning when selecting an investment property for my clients. The property has to meet strict criteria before I would recommend a purchase. The difference in capital growth between a good choice and the optimum choice can be hundreds of thousands of dollars in the medium to long term. There have been four…
One of the most common causes of building faults in residential buildings is incorrect or inadequate waterproofing and surface drainage. It is always a bonus if it is raining during a property inspection. In this situation you are able to observe exactly where the water is flowing. Is the water running away from the building?…
Recently there have been a number of changes made to the regulations governing foreign investment in Australia. I have outlined a few of the more significant changes. A more comprehensive explanation of the recent changes is outlined on the Foreign Investment Review Board website. Temporary residents are no longer required to notify proposed acquisitions of…
In September 2008 changes were made to the form of contract of sale of land used in Victoria. The old contract note has disappeared, having been replaced by a new universal form which has been designed to be used in all situations. This article explores some key changes for purchasers of real estate in Victoria.…
I always get a little concerned when property buyers start talking about buying a bargain. More often than not their interpretation of a bargain is flawed. What they have purchased or are going to purchase is a cheap property that will not perform very well from a capital growth perspective. Often so called bargains can…
The question of whether an item is a chattel or fixture has caused many disputes between vendors and purchasers. This issue arose during post auction negotiations on behalf of one of our clients. The property had passed in and after a protracted negotiation a price had been agreed. We proceeded to sign the contracts when…
As predicted in previous issues the Melbourne property market has experienced a correction of between 0 and 10 per cent over the past twelve months. The beginning of the slowdown can be traced back to the second week in November of 2003 where there was a noticeable reduction in activity levels. We believe that this…
Property investors are entitled to claim a number of tax deductions in relation to their rental properties. What follows is a checklist of the most common allowable deductions with respect to deriving rental income from tenanted properties. Advertising costs for tenants; Non-capital repairs and regular maintenance costs (as opposed to improvements which are capital in…
The 10 Golden Rules Apply If your family or friends have used a builder they’ve been happy with, ask for details about the builder they used; See if the builder is registered with the Building Practitioners Board (visit www.buildingcommission.com.au). Domestic builders doing work worth more than $5000 must be registered; Check the builder ’s projects over…