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You may be interested in developments, as this way you can accelerate building your equity. In my case, I am looking for a suitable site in Brisbane (< 10 km) to develop townhouses. Land should be $150k – $180k per townhouse. Building cost $250k /townhouse. The townhouse would typically consist of 3 bedrooms, 2 1/2 bathrooms and single garage. This includes all costs, such as professional fees, council fees, finance cost and building cost. So cost per townhouse is $400k to $430k. Sale price should be $480k to $560k per townhouse. Time frame: 3 months start up (DA & BA), 8 moths construction, 3 months sale. Profit $80k plus per townhouse. I would be interested in sites suitable for at least 4 townhouses. The more townhouses the better economy of scale. I would build the townhouse myself, as I am a builder and investor.
Andrew Koziel
M: 0418603958
Hi,
I have used successfuly the GreyPages to trace one of the defaulting tenants. I have found the tenant only days after she has moved out. The other defauiling tenant can not be found anywhere. He probably lives with his family.
This has been a lesson for me. Now, I have included on the rent application form a statement that the applicant gives to me a permission to search the car and licence registration databases for his records.
The fist tenant is currently examined in the Small Calims Tribunal for her ability to repay the debt. I shoud receive soon the court report regarding her income and assets. Basically there will be 3 option:
– to have a court order for her employer to deduct the debt from her salaries– to have a court order to take money from her bank account
– to have a court order to sell her assets.
This is a long process. I am on a learning curve. Hope this will work.
[hmm]
Terry, Richard thank you for the links.
Finally, II think I am close to solving the issue with the stamp duty for the trust units.
I have a response from the Queensland State Revenue office (below):
If the trust does not own dutiable property (as defined in section 10 of
the Duties Act 2001) the transactions described in your email do not
attract duty.If the trust does own dutiable property the transactions described will
attract duty.Please see sections 9(1)(h) & (i), 10 and 49 to 67 in relation to trusts.
For rates of duty see section 24.This is similar message to the response from my Accountant. This makes you wonder how much Stamp Duty and possibly Capital Gain Tax the unit holder would have to pay on the units redemption (repurchase by the trust)? Is this a viable investment vehicle?
A nice trick is to make the units worthless when the properties held by the trust become cashflow neutral or cashflow positive. In this case a stamp duty on the worthless units would be $0.00.
Brett Davies, the lawyer from Law Central has stated that in order for this to happen there must be provision for this in the trust deed.
I am going to get my accountant to talk to Brett Davies to get the trust deed right before establishing the trust.
[thumbsup2]
Hi,
I have further investigated the issue for trusts operating in Queensland. The Stamp Duty is regulated by the Queensland Government “DUTIES ACT 2001, Act.No. 71 of 2001”
According to the regulation (and my accountant) one pays a stamp duty when trust units are issued or surrended if the trust holds a dutiable property at that time.
However, there are exemptions – please see attached.
The question is what are the criteria/test used by the commissioner to satisy condition 118(1)(a) and 118(1)(b) below?
I would assume that the section 118 applies to a HDT issueing or buying back trust units?
Is there anybody reading this who has issued or surrended units in a HDT?
Could you please share your experience?118 Exemption—trust acquisition or surrender in family trust
(1) Transfer duty is not imposed on a dutiable transaction that is a trust
acquisition or trust surrender of a trust interest if—
(a) the commissioner is satisfied the trust is established as a
discretionary trust primarily for the benefit of the members of a
particular family or family company; and
(b) the person acquiring or surrendering the trust interest is a
member of the family who, or is a family company that, does not
benefit in the capacity of trustee.
(2) Also, transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender if the commissioner is satisfied—
(a) the trust is established primarily for the benefit of the members of a particular family or family company; and
(b) the trust acquisition or trust surrender is a result of—
(i) a member of the family becoming or ceasing to be a
member of a class of beneficiaries of the trust because of the
birth or death of the member; or
(ii) the person becoming or ceasing to be a member of a class of
beneficiaries of the trust comprising the children,
stepchildren or grandchildren of a named member or
members of the family.
(3) The commissioner may be satisfied of the matter mentioned in
subsection (1)(a) or (2)(a), even if an exempt institution is the last taker in default of an appointment by the trustee of the trust.(4) In this section—
“family company”, for a trust, means a corporation in which all directorsand shareholders are members of the particular family for which the trust is established.[king]
Thank you all for your suggestions. The GREYPAGES data base is great but the tenant is not there.
I have checked with the Residential Tenancies Authority (QLD) whether they have his forwarding address. They can provide the address if requested by the Small Claims Tribunal. Unfortunately, no luck here. I have been tald by SMC to go to the Transport Department with the court order and they may agree to provide the address – have not tried that yet.
I have checked Electoral Roll – no luck.
I am quite sure he would have medicare records but how can you get information from the Medicare?
I suppose there must be possibility where you can get a proper authorisation to get these records?
