Forum Replies Created
If the units are on the one title there might be additional costs to meet fire regulations
I would have thought overpriced, ie 60-70% average occupancy, 6 flats occupied = 60%. Is there a rental market for 2 br units. As the ad specifically refers to firewalls with the 2 br units, if you are interested in strataing the 1 br units check whether there are firewalls particularly in the roof cavities
I’d second AmandaBS that my experience indicates expenses are closer to 30% than 20%. I also like to have a small buffer to cover the cost of replacing a stove etc if necessary
Are the rents you want in line with the market for that part of Christchurch?
I bought an industrial property a couple of years ago, about 25% rented, low rents. Now fully occupied, rents increased, grossing 33% of purchase price, value at least double original price
Talk to your council. Get an estimate from a surveyor. A lot of older blocks need to improve fire ratings to be able to be strata’d.
Do a search. This issue has been discussed before.
Or does the ATO treat it as two assets:
a. the land
b. the new house
if so there would be two different dates
My understanding (which might be wrong) is that if your employment income is less than 10% of your total income then you can contribute profits to super and get a deduction. Maybe you could salary sacrifice your PAYG income.
There’s an interesting book “Credit Card Nation” that’s worth a read
In NSW there is legisaltion concerning sinking fund levies
http://www.dft.nsw.gov.au/realestaterenting/strata/sinkingfunds.html
Try How Investing in Commercial Property Really Works by Roth & Lang
What banks/building societies/credit unions are in the town or nearby. Try some of these
As a general rule you can’t build over an easement. In NSW you can’t build over a sewer main.
Look at what the easement is for and whether you can negotiate to change its location. If the services are already in this would be costly.
In Australia each State deals with the land in its own boundaries and the rules vary eg time required for adverse possession etc. In NSW you can’t get adverse possession of part of a parcel of land.
A definitive work on adverse possession is Mal Park’s PhD thesis
In my experience where you’re most likely to get adverse possession by squatting is in small villages and I doubt there is sufficient benefit:cost ratio to make it worthwhile.
Rather than discount the rent, offer a contribution towards fitout or the first two months rent free. On a commercial property the rent is what gives you your values, so a lengthy discounted rent will affect your valuation
My understanding is that you cannot transfer residential property from yourself to a SMSF. Business property yes. But bear in mind the SMSF cannot have borrowings.
Your PPOR is free of CGT. You are better to use your PPOR as leverage rather than transfer it.
Are you saying the Tribunal is unfair or that the legislation the Tribunal administers has flaws?
If you want an answer you will need to be specific on costs, rents, amounts owing etc etc
The solicitor can only sign the certificate if you instruct him that you are waiving the cooling-off period.
From Dept of Fair trading website:
Cooling-off period
When you buy a property in NSW there is a five business-day cooling-off period after you exchange contracts. During this period you have the option to get out of the contract as long as you give written notice. The cooling-off period starts as soon as you exchange and ends at 5pm on the fifth business day.A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.
You can waive the cooling-off period by giving the seller a ‘66W certificate’. This is a certificate that complies with Section 66W of the Conveyancing Act 1919. The certificate needs to be signed by your solicitor or conveyancer.
View the following on the Parliamentary Counsel’s Office web site:
Section 66W and Section 66W certificate
Conveyancing Act 1919
If you use your cooling-off rights and withdraw from the contract during the five business-day period, you will have to pay the seller 0.25% of the purchase price. This works out to be $250 for every $100,000.Sometimes, there are more buyers looking for homes than there are properties on the market. This is called a sellers’ market. In this case, you may want to organise a quick contract exchange. This way you can reduce the possibility of someone beating your offer and get your building and pest inspections done during the cooling-off period. You will still be able to back out if there is a problem. However, it is important to have the contract checked by your solicitor or conveyancer before you sign it.
It is possible to waive, reduce or extend the cooling-off period with the consent of the seller. If your solicitor or conveyancer has examined certificates from the appropriate authorities, a pest and building inspection has been done and your finance has been approved, then deciding to waive the cooling-off period could make your offer more attractive to the seller.
