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Q: Hi!
My youngest sister has been Granted Letters of Administration for my dad’s estate. His house is the only asset left to distribute. It’s equally owned amongst 4 siblings. 3 of us have cleaned and emptied it, ready to sell. One of my siblings is a meth addict and has since moved in to the house, without our consent. Looking for recommendations on how to go forward. We need to sell and we need to get them out to do that. I don’t know where we stand legally as we’re all equal beneficiaries. Can we force them out if they refuse to leave?
A: As everyone has pointed out, you will need to get an eviction notice issued by the courts in order to legally proceed to remove him.
A further suggestion would be to get some rental appraisals ready and have correspondences (eg. Emails or letters sent to him) reflecting the matter. When it is heard at court have solicitors apply for rent and costs to be awarded to you, and settled from his share of the proceeds of the sale. This may also motivate him to move out rather than spend his inheritance on rent and legal costs.
Hope everything turns out, it is unfortunate to have to deal with something like this immediately after the loss of a loved one. My condolences.
Sophie
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Q: Just wanting advice on how to positive gear we have an estate and wanted to buy something of lesser value than the estate which there is no monies owed to the house would we need to get a loan or is the equity in the house used
Thankyou in advance
A: Vanessa,
Positive gearing is merely a fancy word for an asset that generates more income than it costs to keep (expenses). In theory any assets, if you put enough equity and money into it, and set up up to maximise income can become positively geared.
As an example, an investment where the rental income is greater than the expenses such as mortgage, management and maintenance costs is considered to be positively geared. Rental income can be maximised by setting up dual occupancy / building granny flat etc and mortgage repayments can be minimised by borrowing less or structuring it to your benefit.
If you are drawing on the equity of your existing property, then yes, you are effectively setting up a loan and borrowing against your existing property as security, as well as securitising the loan against the new property. You can't access equity without borrowing against it or cashing out the equity by selling the property
Would be happy to help if you want to elaborate on your current financial situation and plans.
Cheers
Sophie
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Q: I have just put 10% on a home last Friday but I can’t go through with it is there any way I can get out of it?
A: Karen, assuming your purchase is in NSW. If you exchanged last Friday 12th, your cooling off period effectively expires today, Thursday 18th at 5pm (being 5pm of the 5th business day). You should check the date you exchanged contracts, as some contracts are exchanged by the Real Estate Agent with a 0.25% deposit, prior the balance of the 10%.
Consider all your available options carefully, if you effect your cooling off period rights, you will forfeit 0.25%, however if your cooling off period has expired, not only would you forfeit the 10%, the vendor also has the right to sue you for costs. This compensates the vendor having taken the property off the market for you during cooling off, and potentially making decisions after your cooling off period expired (e.g. relying on your purchase to afford their next property)
If you wish to elaborate on why you are unable to go ahead, we may be able to provide further assistance.
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Q: Hi
Our home loan is with CBA $540,000 and the property would be valued around 800,000… we both work, 2 kids 8 and 10 and we don’t like credit cards. The rate is 4.19%, what is the best rate we could get by refinancing?
Thank you
A: It is prudent to not to simply focus on the advertised "rate", but also the overall cost of the loan, which is better translated as the comparison rate.
I would also suggest for you to consider what facilities you may need (e.g. off set account, transaction account, whether you prefer a brick & mortar branch establishment, are you happy to do your banking online or over the phone), as well as what your near term plans are. These factors determine which lender or product is more suitable for your overall needs.
It doesnt hurt to enquire and is generally free for you to have a broker assess your actual needs and financial situation rather than getting a generic answer here.
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Q: I have a mortgage and when reviewing comparable rates I see many offers considerably below what major banks are offering. What are the risks associated with going with a second-tier or online based home loan? They offer lower rates so why doesn't everyone use them? What happens if they go broke?
A: Why doesnt everyone use them?
Many borrowers pay the "lazy" tax; some traditionalists prefer 'brick & mortar' establishment where they have walk in comfort; borrower's computer literacy; language barriers etc .. the list goes on.
It is not important why "others" dont use them, it is about finding a lender and a product that suits you. As Sam represented, they are all governed under the the same regulations, arguably the Big 4 have more funds to pay fines (*wink), establish local branches and pay for staff and marketing. Smaller lenders dont market as aggressively nor do they operate under the same business model, you can argue that they pass the savings to you in the form of reduced rates & service, but in reality, "what service do you want from a Lender" (as opposed to where you conduct your day to day banking).
What happens if they go broke?
Well you are borrowing money from them not investing money in them right? Besides, in Australia, the first 250K of each person's deposit in ADIs are guaranteed by the Govt. Now, if your Lender went broke, the likely scenario is that your debt will be sold, it is unlikely that your loan contract will change as there is no grounds for it, so you will just be paying to another financial institution. Besides you can also refinance, which just means the balance of debt is repaid to the existing lender and you set up a new loan with another lender.
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Q: My husband and I are looking at income and trauma insurance policy through our business and would like to ask about trauma. Does trauma only include life threatening illness or an injury that stops you from working?
A: Hi Vicky,
Personal Insurance generally come under the following policies.
Lump Sum Benefit
- Life
- Total Permanent Disability
- Trauma/Critical Illness
Monthly Benefits for the duration of the illness/injury or insured period, whichever is lesser
- Income Protection
- Business Insurance
Depending on the Insurer, there are variations in definition and inclusions, Trauma is a lump sum benefit which includes some serious illnesses, but not necessarily terminal or life threatening (Although all illnesses may result in eventual loss of life). Just pick up a PDS, and read what is listed to be under Trauma/Critical Illness (it is VERY specific) and you will see what I mean.
I have had clients suffer a defined stroke which triggered a Trauma Lump Sum benefit, and they are alive and well right now, of course during the time he was incapacitated, it also triggered his benefits under Income Protection.
