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NRAS property example

When you purchase an NRAS approved dwelling anywhere in Australia it is exactly the same as buying any other investment property. You own it, you have title and you may choose opt out of the NRAS scheme at anytime.

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For example if you purchase a property for $400,000 with a current market rent of $400.00 per week. Your tenant will have their rent of $400 per week reduced to $320 per week. (i.e. 20%)

However are now receiving from the government $183.00 per week. This will bring your total income up to over $503 per week on a $400,000 property purchase.

All the normal risks and benefits associated with acquiring a traditional investment property still apply however with an NRAS Property you get the benefit of a cash bonus from the government.

Payment terms for builders

The building contract usually includes a payment schedule. The schedule sets out how much building work must be completed before the next installment or 'progress payment' is due.

The first payment under the contract is usually a deposit and should be limited to the builder's initial costs. Under the Home Building Contracts Act 1991, for building contracts valued between $7,500 and $500,000, the builder cannot ask for more than 5% of the contract price as a deposit.

Before signing the building contract, you should check that arrangements for the release of progress payments are acceptable to you and your lender. The builder usually submits an invoice before a progress payment is due. Your lender may make the progress payments directly to the builder on your behalf.

Most contracts specify a total amount for the building work. Two areas where the costs are estimated in the contract are the cost of goods that you will select during construction (known as prime costs) and the cost of work that cannot be known with certainty (known as provisional sums).

If the actual costs (including the builder's margin) are less than the estimated costs, the builder will pay you the difference. However, if the actual costs (including the builder's margin) are underestimated, you are required to pay the difference to the builder. Your builder must use reasonable care and skill when estimating costs in the contract.

The builder can include a term in the contract that allows for prices to be changed if the builder faces or incurs an increase in costs if government taxes or charges increase after the contract is signed or a State or Federal government law changes.

It is important that you fully understand your rights and responsibilities when entering into the contract to ensure that your finances will allow you to complete the project.

It is essential that you engage the services of an experienced Mortgage Broker and/or Builder Broker to ensure that the expected construction costs are well within your budget.

Moving Adelaide

Not sure if anyone else has heard about The Integrated Movement Strategy for Adelaide?

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It's a 10 year plan whose objectives are to achieve a pedestrians, cyclists, public transport users and drivers.

As a person who fits into all of these?categories?i cant wait to see the changes that will come about as a result of this.

If your interested you can check out the draft plan at www.pictureadelaide.com.au

No fixed price deters buyers

A recent poll taken by PRD Nationwide has shown that 95% of buyers were deterred by properties which did not include a fixed asking price and often overlooked those properties during their property search.

The poll attracted 450 respondents from across Australia however was the majority were from Queensland and New South Wales.

The poll found that three quarters of respondents where 'greatly deterred' by properties which did not include an asking price with a further 20% being 'slightly deterred'.

Only 2.5% of respondents were 'definitely not deterred' by the practice.

According to PRDnationwide research director Aaron Maskrey agents could ultimately be 'missing out on potential purchasers by not advertising a selling price or selling range.'

Make a splash in Adelaide

Am i the only one who has wondered why we have everything is on in March and nothing is on for the rest of the year?

On the news the other night i heard them saying that if they changed the Clipsal to any other time of the year it would be a massive failure.

Surely it makes sense to spread out the fun during the year. Its not like we live in London where we only have 2 weeks of nice weather per year.

Fortunately the Adelaide City Council think like me and have introduced Splash Adelaide. Projects have included setting up deck chairs on the lawn outside the state library, setting up free table tennis tables and creating pieces of chalk art throughout the city.

The state government has now matched the councils initial $100,000 investment to expand the project which has resulted in the Parklets (mini parks) sprouting out accross the city serviced by street vendors.

If you want more info you can check out www.splashadelaide.com