Taking advantage of the pre-settlement period - Making improvement

The purpose of this article is to consider making arrangements for improvements to the property during the pre-settlement period.

There is much to be done to take a property from offer to settlement, and the process includes making preliminary arrangements for after settlement date, especially if the property is going to be tenanted and requires some work to come up to scratch. 
During the pre-settlement period many buyers will use the time to prepare to make improvements to the property.

• These improvements can be minor changes such as a quick lick of paint inside to the construction of the carport, deck or outdoor entertainment area.
• There are many reasons why buyers many wish to make immediate improvements to the property.
• The buyer may have identified the property can obtain a higher rental yield with certain changes made 
• The buyer may be changing the best use of the property from residential or commercial and therefore needs to make some changes
• The buyer may be moving into the property themselves and requires the changes to be made before they move in.

Whatever the reason, the pre-settlement period is often a good time to arrange to have these improvements made as soon as the house settles.
Buyers can use this period to obtain, compare and accept quotes on improvements and book contractors to begin work immediately after settlement.
Be careful though, if you sign contracts to begin construction too close to settlement date, any delays in settlement that are the sellers fault may negatively impact you and sellers fault may negativity impact you and you may be left paying contractors for missed working days depending on your contractual arrangements.
In some situations the buyer can obtain access and make significant improvements to the property during the pre-settlement period, which can have tax advantages and assists in the buy and flip - strategy of buying and selling properties quickly. 

RBA plays down bank's smaller cuts

Reserve Bank of Australia (RBA) has played down the difference between its own interest rate cuts and those made by commercial banks.

RBA governor Glen Stevens said that the bank's margins had fluctuated but had been in a reasonably narrow range for a number of years.   

The RBA cut the cash rate four times in 2012, taking it to 3.00 per cent from 4.25 per cent. Most of these cuts were not fully passed on when

the major banks cut their standard variable lending rates.

After the RBA's most recent 25 basis point reduction in December, all four major cut by only 20 basis points.

Mr Stevens repeated his point that the RBA had reduced the cash rate more than it would normally in order to compensate for the commercial bank's

smaller reductions.

Mr Stevens told a parliamentary committee "central bank was willing to cut the cash rate, currently at three per cent, further if necessary.

With the annual inflation expected to remain within the RBA's target range of two to three per cent for the next two years,the central bank

had room to cut further if economic growth slowed."