Forum Replies Created
Agreed – I can do that!
Thanks. Just got an email back from my accountant – he said it is fine as long as it is a designated LOC.
Yea – much rather use tax-deductible debt than non-deductible equity! Let's hope my next offer is accepted. My sister lives in Upper Coomera and I have an IP not far away from this, so I know the area quite well. I feel that Upper Coomera will have quite a bit of growth in the long term. It does have pockets that are mainly owner occupied and other areas that are almost exclusively rentals. You will generally do better in terms of growth (and probably rent) chosing in the owner occupied areas. Good luck with your search!
I have been told that the only way that allows JV partners to keep/sell/own a single unit in a block is by setting up a partitioning agreement prior to purchase. I believe the usual JV agreements are viewed as %ownership of every unit by the ATO. I am not an expert in this area. Check it out with your accountant and solicitor before you buy.
Thanks Slipper.
Just found another worrying clause in the General Housing Code section of the Planning Certificate:
"Complying Development under the State Environ. Planning Policy (Exempt and Complying Development Code) 2008: General Housing Code amy not be carried out on the land. It is prevented by a land exemption specified in clause 9.91 as it comprises bushfire prone land"
I know that you can build on bushfire prone land if you follow certain rules. Neighbouring properties have houses. Does this mean that building is prohibited on this land or maybe that building using the General Housing Code is not allowed but maybe there is a specific code for bushfire prone land to follow???Thanks Slipper.
Just found another clause under the General Housing Code off the Planning Certificate:
"Coplying Development under the State Environmental Planning Policy (Exempt and Complying Development Code) 2008: General Housing Code may not be carried out on the land. It is prevented by a land exemption specified in clause 1.19 as it comprises bushfire prone land"
I know that you can get approvals to build on bushfire prone land as long as you build within certain rules. This appears to be saying that building on this land is prohibited. Am I interpreting this correctly?Hey Zulik and Sonja – 5 years on. What did you do? How did it go?
Jen1Thanks House Call. I thought the same but when I spoke to the bank I got all confused about it. Some managers are not proficient at explaining things! Thanks.
Thanks RHPlanning! I will check it out.
Thanks for all your suggestions.
I did a title search and looked up the yellow pages in the hope that the owner also lives in the same town. Lucky for me they did! [biggrin]
However, although I have rang twice and spoken to his very lovely wife, I have not yet managed to catch him (and I get the impression she is more concerned about getting him to finish the ‘birdhouse’ than any other ‘distractions’ [blink]).
In a last ditch effort I have written him a letter which I will follow up with a phone call if he doesn’t ring me first (heres hoping).Will keep you updated!
Regards,
JennyJenny
“Knowing is not enough; we must apply. Willing is not enough; we must do.” – Goethe
Thanks for the advice. I am hesitent to contact an RE for that very reason! Is it possible for ‘normal’ people to access RPdata? However I don’t think a letter will work as it is actually a block of flats. Would getting a title search help maybe? If so, would I need a solicitor?
Thanks,
JennyJenny
“Knowing is not enough; we must apply. Willing is not enough; we must do.” – Goethe
Do ensure that your check with the local council, and ask the removal home people about your council too before you do anything. I know that it is near impossible to get my local council (regional NSW) to approve a removal home development – it would be cheaper to build new. Check it out first and ask the council if there have been any previously done in the area.
Good luck [biggrin]
JenHi Camder,
I haven’t developed before but have been looking into it. Thought I’d throw my 2 bobs worth in anyway.
I would imaging if you are doing this as a partnership you would want a clear contract between the 2 of you from the outset. CGT discount only applies if it is in your own name and you have held property for >1yr. Hence need to weigh up cost of holding vs CGT discount.
If you decide paying full CGT is OK for a quick sale then a company structure would allow simple distribution of profits, limit tax payable to 30% and provide some security too. Could also claim GST for build (although I presume you would pay GST on sale too – I haven’t worked this part out fully yet).
Good luck! Let us know how you go!
Cheers,
JennyHi Craig,
I have not done a subdivide yet, but have looked into it in my area (NSW).
You need to contact a planner at your local council and speak with them. Each local council has their own charges for subdividing. You also need to check the minimum land sizes and the minimum distances from boundaries, min private spaces etc with them too. This info should also be located in the councils policy on residential housing (might be available on their website). This will ensure you can fit your plan on the subdivided block. Don’t forget to include extra costs such as water/waste connections and surveyor costs. In my area I calculated around 15K for a straight subdivision but check with your friendly council planner!Cheers,
JennyHi All,
I too have a rather large and scary project (as a newbie) that I’m excited about and would like some advice on a block of strata titled units.Cost 1.35M firm [uneasy]
Stamp Duty ~60K
Interest ~100KCurrently -cf but I plan to sell two units (put back into loan to reduce interest) and furnish others to bring total income to +cf by $300pw.
Question: I’m having trouble coming up with enough equity (although I should have about $146K equity if I pay mortgage insurance). Any suggestions????
Also, how is the best way to make the quick sales. Can I request a long settlement and put the 2 units on the market before settling??? Any other ideas.
Sorry, but I have never ever tried to do anything like this! Can’t stop shaking but really excited. Anyway, to make matters worse I am flying away tomorrow for a week (my sisters wedding) so I need to get process in motion tonight! Ahhhh!
please help if you can.
Thanks in advance,
JenThanks for all your kind words, advice and support.
I took your advise and had the IP valued – would list at $40K above purchase price [biggrin]. So at least it is getting better. Unfortunately, I just found out my tenant is over his head and is going to leave. He promises to repay what he owes (fingers crossed as it is a bit more than the bond). I suppose on the brighter side it allows me to try for higher rent. Wish the timing was better though as I will be on holidays (my sisters wedding) when he vacates and I have been self managing. Hence have decided to go with a PM this time.
I have also taken the plunge and joined the RESULTS program – can’t wait to learn more and improve my situation.
Cheers,
JenHi All,
Thanks for the informative posts. I too have been looking at a block of flats, but in NSW. As a newbie, I found Dazzling’s post of enormous help (thanks). I used your ‘template’ and came up with similar results (2.2% break even but not quite as -cf as luan’s property).
I too am considering buying and then selling off strata units but I have absolutely no knowledge in this area. Apparently, the units are already “in the process” of becomeing strata tilted but the RE is useless and isn’t sure where it is up to (I don’t think he understands it either [blink]). Can anyone tell me how units become strata titled and what types of costs I should factor in?Kind Regards,
JenThanks Hellman. Some good tips there. Any other opions on ‘riskier’ properties?
JenHi. This is my first visit to this site after reading Steve’s book – and I am impressed. I have to admit that I already have a -ve geared property (ouch) but am looking to rectify my situation. I have been looking for properties in QLD so far with no luck. I would be interested in knowing whether anyone else has been able to find +ve properties in QLD.
Yea – much rather use tax-deductible debt than non-deductible equity! Let's hope my next offer is accepted. 
