Q: While the house is being built are there progress payments?
A: Yes. The bank will charge interest on whatever money they have paid out, either to the builder or to settle the land, this interest will either have to be paid by you or the bank may agree to add it to the loan.
Q: Am I able to make changes to the house design & the colour scheme?
A: No. The aim is to keep the price of the house as low as possible and offer you the best possible guaranteed rent return. Not allowing changes helps us achieve this, also we know what the majority of tenants are looking for in a rental property, allowing changes may make it more difficult to lease out the property to a tenant.
Q: If I pay the extra and have the luxury items included in the house, is the guaranteed % on the total price including the luxury items?
Q: Will I receive rental statements during the guarantee period?
A: Yes. Each month we will transfer your guaranteed rent into your nominated account & email you a statement. At the end of each financial year we will also email you a financial year statement. If you do not have an email address we will post the statements to you.
Q: Can Taylors pay the rates out of the guaranteed rent money?
A: No. Our system is set up that we will receive the rent money from the tenant, we will then pay all the guaranteed expenses from the rent monies received, we will then make up any short full & then transfer the guaranteed amount into your account. Therefore paying expenses that are not covered by the guarantee such as council rates, water rates, building insurance, land tax & body corporate fees if applicable, will complicate matters. However we can assist you in setting up a direct debit with the relevant authorities.
Q: What happens at the end of the guarantee period?
A: A few months before the guarantee period ends, we will contact you to ask what you would like to do. You may wish to (i) Sell the property, (ii) Continue to lease out the property, or (iii) Move into the property.
Q: How can Taylors afford to give such a guarantee?
A: When a real estate agent sells a property we are paid a commission, we use that commission to offer you this rental guarantee. We receive rent from the tenant occupying the property, from that rent we pay for the expenses listed in the guarantee, including paying ourselves a normal management fee, we use the commission to make up any short fall and pay you your guaranteed amount. Even if the full amount of that commission is used, we’ve still received our management fee and you have had 5 years of hassle free investment with a great rental return.
Q: Why does Taylors want to offer such an inclusive guarantee?
A: We want our investors to have an absolutely hassle free and happy experience. If you are receiving a great rental return and enjoying being a property investor, you are more likely to want to buy a 2nd investment property with this guarantee and then a 3rd and so on. This guarantee makes it easier to hold the property, allowing you to consider purchasing another property sooner.
Q: What happens if the rental amount increases substantially and there have been minimal expenses to pay, during the guaranteed period, and we end up receiving more rent than we have paid you?
A: At the end of the guarantee period, you receive a statement showing the total rent we have received less total expenses we’ve paid. If that net figure is greater than the rent we have paid you, we will pay you the difference. If that figure is less obviously you do not refund any amount back to us.
Q: Does the rental guarantee amount increase during the guarantee period?
A: No, rather than paying a lower return at the start & then having increasing during the guarantee period, we pay a high return right from the start & the rent amount is fixed for the 5 years.