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A couple of quick quezzies:
How did your silent partner escape his obligations (are you just kind hearted and let them out? or were they a guarantor for the loan?)Did the company pay GST on the purchase of the land? If not, why would you be trying to pass it on to the purchaser?
Going to auction will only extend the pain for another 4-6 weeks plus the settlement period – can you afford to hang out for another 3 months or so?
If the prospective buyer won't increase their price, can they release the deposit during the settlement period?
Agents only charge 2 or 3% nowadays, so any savings offered by them would be chicken feed – work with the agent to seal the deal and take the hit (if you cut their remuneration do you think they are going to work harder?)
So that would make your net income around: $60k+$12.12k-$24.5=$47.62k before tax
Speak to your business banker, not the gumby at the front desk.
This is commercial lending for commercial purposes isn't it? In NSW you don't need a builders licence to build commercial premises – banks understand that and will limit funds based on your financials and ability to repay not some half-@rsed idea that you can owner-build once every three years. I am sure Harry Triguboff never had that problem (he never borrows to build after a blowup with his banker many years ago).Qlds007 wrote:5) After 5 years GST is no longer payable as the units are no longer considered new. Is this correct?
A) GST is only payable on new items so therefore if you tenant the property and then resell it down the track no GST would not be payable.
Richard,
if this is the case, would you still be able to claim the GST input credits (for the development work)? What is then done with the GST credits paid during the development, do you get them back?
Would this apply to commercial development where you are selling a) as a going concern? b) as a vacant possession commercial unit/office? [as these are normally noted +gst]
ThanksThanks Terry – the link is http://law.ato.gov.au/atolaw/view.htm?locid='JUD/99ATC4242'&PiT=99991231235958
Now, as the property is vacant land, as I understand it, the costs of tree removal would be capitalised (and be offset on capital gains), the holding charges would be expensed (against other private income) etc.
In order to 'prove my case' ie intent, should it ever be necessary, I would need to have completed my due diligence prior to purchase including modelling of purchase, development, holding costs and sales income/market appraisal or valuation (all dated Jan 2008, of course). Should I change strategy later on, ie reappraise the development & decide to hold (and sell the ppr) this should be documented as well (full investment analysis, again).
