Forum Replies Created
I agree… make the most of it – the time to buy is now whilst we are in this lull. Auctions may be a thing of the past for sellers, but as a buyer it’s paradise. Stockmarket at all time highs – wouldn’t be touching that, but then I personally never would.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I think there is some confusion about the tax benefits to developers. The only tax implication I can think of is that by registering for GST you will need to hand over 1/11 of your profit as GST… which is why the ATO would be very happy to decare you a developer. It may also have some impact as to whether you are assessed under CGT or as income – and you certainly would like to be assessed under CGT. However if it is your clear intention to just develop a property and sell it and you do this regularly, then I would say that yes this is an income activity not a CGT activity; but you need to speak to a tax accountant I would think.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
hang on… have you spoken to council? and they have confirmed that these plans all conform and there is nothing you can do? In Perth there would be no hope of getting a development like that through – you couldn’t have any clear windows looking into a neighbours property and you certainly couldn’t build a 2 storey high wall down one side. any plan like this would be put to all neighbouring properties for consultataion – just make sure they aren’t intimidating you and you have the facts right
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
didn’t you do an inspection before settlement? If you are sitting there paying interest on this property I would just forget the arguments and get the skip in and sort out the bills later. skips aren’t expensive anyway and you must be losing rent whilst this argument drags on?
It is actually the listing agents problem, not the conjuncting agents, so he is not really passing the buck (though they should feel some degree of empathy).
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Hotrod – I think it depends where you sit on the fence. I don’t care what anybody says, property will go up in value, hence it is not a gamble to negative gear. This is even more certain given Perth’s growth. I believe it is more of a gamble going to a town where premium rents are being paid because even the locals don’t have the confidence to invest in the real estate. Kalgoorlie is a prime example of this (see other threads) where it seems to boom and bust at least once a decade. I think the gamble is focussing on todays high returns without regard to the quality of the asset you are buying. The only regional area I would consider would be Bunbury, as it will eventually just become part of one huge suburbia stretching from Jurien Bay to Albany (as depressing as that thought may sound!).
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
any real estate agent can act on your behalf as a buyers agent. there are a few places that specialise in it now though – but they charge reasonably hefty up front fees. They do this because they are all too well aware that many buyers often can’t commit to actually signing on the dotted line, so it covers them for their time and effort. It’s easy to make a mistake when buying property, especially if your new to it. is it worth paying a buyers agent? tough question – I think it depends how much effort you can put into it. If you do enough of the hard yakka yourself (talking to agents, establishing true values, clauses you should have in your offer and so on) you should be able to do it. Real estate laws are pretty heavily skewed to buyers in any event. Either that or take the cost on the chin on your first deal and soak up all the knowledge… it could be a good education.
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
it may or may not be a scam but this article is rubbish. The premise of the whole attack is that this guy went there expecting to see a built apartment and it was only half built – sorry but this happens everywhere everyday. Surely they could find some better facts and figures if they are going to label the article a “Kiwi real estate scam”… in fact the examples that they quote (the real estate agent and the developer) seem to suggest it is actually legit and not a scam at all. The heading does not match the body of the article!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Redwing – I don’t know a lot about Broome but I did read the prices were effectively being pushed up artificially by the inability of the state govt to deal with the native land claim. My concern would be that when it is resolved there will be plenty of supply of new land? I was interested in Karratha but hear mixed reports about it.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Marisa,
that block was somewhat incredible though – absloute beach front right next to the centre of towm. I am not surprised at all by that price. There are still plenty of bargains there though and this is one of those areas where I believe you can easily buy below replacement cost.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I think it’s feasible but most landlords hate the idea of pets. Also alot of strata by-laws prevent the keeping of pets so it could be a little tricky in that regard.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Terryw,
I read the first two lines:
“If you leave your main residence temporarily, you may want that residence to be regarded as your home while you are away. This may be the case, for example, if you move because of a temporary job transfer, to study overseas or to take an extended overseas holiday.”
which suggested it had to be for some legitimate reason, not just wanting to move next door. I’ll need to get hold of the legislation and read it as it coud be an interesting strategy. My concern would be that the ATO could argue that the only reason you moved next door was to minimise tax and apply some of their lovely avoidance provisions. It’s great news though if you can do this – will cetainly look into it more.
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
to elaborate on the ATO – a bsaic example is say the only depreciable fitting was $5k worth of carpet, if you went in and replaced that in the first month of owning the property, you couldn’t claim a $5k tax deduction for carpet replacement as the ATO assumes you would have bought the property cheaper to compensate for it. If however you waited two years, you could depreciate that carpet and get a deduction for it. Thats my simplistic explanation – check out places like depro and washington brown for further info though.
add up the cost of your reno, guess what the improved rent will be per annum (taking into account vacancy times etc) and make sure that the extra return is really worth it – you would want to be getting at least 12% on your money to bother. So if the reno was going to cost $10k, you would need an extra $1200 per annum rent or $23/week.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi KP – fist I should point out I don’t actually have a Thornlie property, but am considering it. Purchase price say $180k, rental say $180/wk. so that is 5.2%, be conservative at 5%, with combined excellent cap growth prospects. There is also a shortage of rentals in these areas. Yes it’s negative, but we’re are talking city properties here with large land content. If you really want to push your cashflow – look at units in these sorts of areas.
Queens Park – it’s no oasis just yet, but on its way. I hear what you are saying about local agents and it’s very very true. SOMETIMES when you are selling you can get better prices using non-local agents as their minds are a little more open. Valuers cause similar problems and as one gent described them, they are ‘glorified historians’ which always amuses me when I see some of the valuations that come in – particularly when it is a new concept or standard for an area.
That article – I read it very quickly and thought that was why I didn’t get the drift of it. I was equally confused as to how rates can go up without the RBA putting rates up. I would re-read it again – is it worth the time? not sure…
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Originally posted by Terryw:I did something similar too. Did you know you get get the best of both worlds? ie rent out your PPOR, claim deductions and rent somewhere else(which would be cheaper) and still claim the PPOR CGT exemption for up to 6 years.
Terryw
Discover Home Loans
North Sydney
[email protected]Terry I assume you moved states or something to achieve this tho? Reading http://www.ato.gov.au/individuals/content.asp?doc=/content/29092.htm&pc=001/002/026/004&mnu=5060&mfp=001&st=&cy=1 I don’t think you can just willy nilly decide to do this – do you have to take a long overseas job holiday or job transfer to somewhere to qualify??
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
there are many interesting angeles to this idea. as Redwing said – the length of stay is important. It could be worth approaching some investors (or even mates – but keep it all arms length) to custom build a house for you and offer them a 7 year lease. Could even do that with a new house that has been fully built – many investors would jump at a long trem lease possibility. For the ATO you need to keep it all amrs length, but you coud always team up with a good friend and buy a house for each other and rent at commercial rates. If you build on a new estate with a similar design there will be no arguments about who is getting the best deal – or 2 new apartments that are very similar etc etc.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
yes you are on a winner with Queens Park – Cannington has gone crazy and Queens Park / Kenwick and all around there will be next to really benefit.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi guys – the company that I worked for in my last position offered JV opportunities that are returning between 32% and 65%. There was nothing dodgy about it and your security was guaranteed as you owned a proportion of the freehold property.The borrowing for the project was secured by using that unencumbered property. It’s not a bad return for not having to do any work. If you do a developemnt in your own right you may get 100% return on your funds invested but you need to find the project that works and have the confidence in yourself that what you are about to undertake will be successful (and find a financier with the same confidence!) and have all the headaches and so on. JV’s can put you into a much larger deal taht you just couldnt undertake yourself.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Jars I can’t really see the problem – if the co (which I assume you own) is netting $750k and you are on at least $100k personally, surely you can afford the holiday home that will yield above ave cap gains and give some pleasure as well? And with that income why waste time buying poorly located CF+ properties – just stock up on the quality low rent ones as you can service them no probs. I wouldn’t say you have drifted off course – just keep on buying IP’s and the balance of your asset allocation ie. hol home vs IP’s will look more reasonable as time goes by anyway. And as time goes by your rents on your initial IPs will rise and should balance thinngs up beter as well.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
some choices…
* vendor finance
* sell something
* partnership
* sell it before you pay for it
* secure it with an optionjust gotta use your imagination!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
“There are pockets where the landing is going to be very hard,” he said.
once again… depends which market you are looking at. Perth took a breather around jan – apr but is set to run again – the threat of first home owners swamping the market on 1st July actually seems to be driving the market pretty hard now, contrary to my prediction that there would be pause in the market. I am noticing many properties selling and enquiry levels really picking up in the last week or two. Properties that I wish to secure seem to be being snaped up very quickly. I doubt if places like Karratha are seeing a slow down either. Still I wouldn’t like to be holding a contract for an OTP apartment in inner Sydney/Melbourne at the moment – but that was written on the wall long ago so no surprises there.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
