Forum Replies Created
Hi guys
thanks for your replies.
I actually have a DA before council at the moment for townhouses in Zillmere. I know there is a lot of action out there at the moment. I am not overly wrapped in Zillmere myself because of the amount of new development there. However, the numbers on this one are really good, so we are proceeding.
Andrew – why don't you like Zillmere?
Beedie – I know there is alot in Moorooka, but my thoughts were that they were selling though, perhaps returns are not as high as they might be due to the discounting of stock. Greenslopes sounds good. I guess doing anything in a subrub of that calibre is a little off for me yet, due the price of land. But I will certainly start looking there!!
I guess I am after the places as you say where scarcity is the go. Always a simply issue of supply and demand. Where are you looking for your next one?
Thanks Richard – I will adjust my figures accordingly.
Thanks Alistair. So if you just looking at res loans of say $500K a pop – you need to do 60 a year to write $30mil and take home a 5% comm of $150K. This is quite a few loans to write – more than one a week. Obviously writing the loan would be fine, but finding that many loans a year could an ask I suppose.
Is 5% the norm for all brokers or does it change with differnt models/franchises?
I understand what you say re trails – so if you build it up over a few years you could have quite a good passive income coming in. Though it is all about getting started I suppose.
also I know the conveyancing that I have done that banks are pretty hard to deal with, in relation to actually getting the loan approved within a short period (a typical finance clause is 14 to 21 days I guess) and then getting them to settle the thing can also be difficult. Does this wear you down after a while?
Thanks Allistair – I appreciate your comments.
I guess I have a reasonable understanding of tax and accounting issues. Probably not too much in relation to super. I guess that relates to self managed funds borrowing and the rule relatinig to that? I could probably get my head around this.
Did you find it hard to start off? Are there lots of brokers out there struggling? I mean if everyone is making well over $150k than this would seem a pretty good business, considering the start up costs are low and you don't necessarily need a degree or anything.
thanks again.
Hi
I am paying about $8k in Brisbane for the same thing – two x 3 bedder townhouses.
My guy works from home. He has done heaps of t'houses apparently and used to work for one of the big firms in town.
He came recommended to me. He seems to know his stuff. He has told that he couldn't charge me more as he would feel like he is ripping me off.
I think some places may charge $15k for the same thing. But maybe they are making really good money on that I am not sure.
Ben
have a look at this – i think it might help –
I wouldn't recommend reading the act unless you are a specialist tax lawyer
http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf
minor correction
it doesn't sound to me like you are a developer and therefore you do not have remit GST on the sale. From what you have described it seems like an isolated transaction and not an 'enterprise' accordingly gst would be Neither charged or remitted to the ATO in the event of a sale.You should competent accounting advice now and if necessary a private ruling.
Check out this case summary for an idea about what the rules are http://cgw.com.au/legal-alerts/january-2010/ato-determines-that-developer-of-22-lot-subdivision-does-not-have-to-regis
it doesn't sound to me like you are a developer and therefore you do not have remit GST on the sale. From what you have described it seems like an isolated transaction and not an 'enterprise' accordingly gst would be be either charged or remitted to the ATO in the event of a sale.
You should competent accounting advice now and if necessary a private ruling.
Check out this case summary for an idea about what the rules are http://cgw.com.au/legal-alerts/january-2010/ato-determines-that-developer-of-22-lot-subdivision-does-not-have-to-regis
Hi D – thanks for your quick response. I think I will start with the Ron Forlee book, which i will buy at lunch time today! The others also look good and I will get to them shortly.
Thanks for your help.
Cheers
Ben
hey Tim – Deception Bay is a pretty dodgy area. Redcliffe and Deception Bay are not the same market. Redcliffe has come a long way in the last decade but not Deception Bay. I know Deception Bay is cheap and does have water, but it really is a long way from turning around. I would probably recommend coming to the area before buying. Sorry to be a downer. But Depression Bay as it is called up here is a very low sociodemographic area. Of course that does not mean that there are not good buys, but just be wary.
Ben
I would recommend warlow scott lawyers in Brisbane. They do heaps of property stuff and all at a very good price.
http://www.warlowscott.com.au.this is a complicated question. You should seek legal advice.
Some general comments –
some off the plan contracts won't allow you to transfer before setllement
generally if there is no clause in the contract saying that you can't onsell then you are able to at common law however as I understand it the purchaser may have some issues in getting finance for the purchase because of what you are selling
if you do sell prior to completing the contract then unless the original contract contained a put and call option then you have to pay stamp duty on your purchase and the purchaser from you will have to pay stamp duty on his purchase.As far as the deposit bond goes I don't know a lot about them but my understanding is that it wouldn't make any difference whether you on sold it or not. The deposit bond is merely a promise to pay if you default on the purchase.
hope this helps.
Ben
Hi Kris,
If you are in Qld then any contract signed before auction should just be a normal REIQ contract with a PAMD form outlining the cooling off period provisions attached.
Ben
No definitely don't give the money to the vendor. A solicitor's trust find is the way to go.
