Forum Replies Created
Could you give me a very broad and basic run down of the margin scheme? Can you sell a property under the margin scheme if you’ve bought a piece of land off a long term home owner and GST wasn’t required to be included in the sale?
How do you go about it? Short answer it depends on the individual circumstances.
I wouldn’t go anywehere near a property with a significant unapproved structure. Retrofitting fire separation between common walls is bloody expensive, there’s potential issues of permissibility and it may have been constructed in breach of Australian building codes.
Hi Benny.
The only point I would challenge is that negative gearing increases housing supply, Most major residential developments are sold off the plan or sold after completion, from my understanding the majority of negative gearing occurs on established properties.
End of the day the only people that will be negatively affected from a drop in property prices are property speculators; if you own your own home and the market tanks then if you move yes you will get less for your place but everywhere else will have tanked as well, making it a net even result. If you speculate on an investment for the sole purpose of making capital gains you are hardly investing.. Much better for the country to have lower house prices over the long term and encourage investment in other areas.
I don’t get why they are a joke though, can you explain further. If you can buy one outright with no loan and have it net 6.5 to 8% surely that is a decent return? Or are there other issues that I’m missing..
No council is legally permitted to retrospectively approve a building in NSW. They can issue Building Certificates which essentially are a document that state that they will not issue an order to remove the building for a period of no less than 7 years. That’s it.
And the building certificate process can get very messy, especially with granny flats as they are often renovated garages outbuildings etc. and don’t meet current Building Code of Australia requirements.
It can be done, but unless you know what you’re doing the process can be drawn out, expensive and potentially end in a situation where you have to remove the structure, because you’ve alerted the council to the fact that there is an unapproved structure in your backyard.
For a bit of balance here – opposite to what Corey said OTP can be a very profitable strategy in the right circumstances. Example, Citi1 apartments in Wollongong. They were sold off the plan in 2011/12, have since appreciated by about 30 to 40% in value, have low strata fees and are in a good part of town. They were built without delay and have a good finish. Multiple other blocks in Wollongong that have had similar results. Depends on the market and timing. Wollongong has a lot of construction underway now so isn’t the opportunity it once was but I’m sure there’d be other markets that offer better value.
From what I see, people are very good at prolonging a way of life without properly addressing problems until they are forced to. From memory people started predicting the GFC a few years before it actually happened. Couldn't this just be the beginning of what may be the trigger for the next market collapse in 5-10 years time?
Let me say first that I don't claim to know very much on the subject. I have however read your posts in this forum with interest for a while now. What I'd like to know is how you are so sure that you are correct when what you are discussing is so complex and multi-faceted?
Just google Wollondilly Council. From their home page click on 'planning' in the top tab and then you can access a copy of their DCP.
Having finished high school about four years ago my advice would be to make sure you do well in English as it is in my opinion the most useful subject by far. Geography may be helpful as well.
Being a town planner I deal with developers all the time and I would divide them in the following way:
– 85% are first timers who are no more educated or experienced than you or me and usually dabble in small projects.
– The other 15% are experienced developers with extensive experience of the development process.
School and University subjects are good for teaching you how to learn but are often not very relevant to the occupation that they lead you into. Unless you plan to become a builder that undertakes all of his own development work then it would in my opinion be silly not to pursue a career in a separate field (one that may or may not have some relevance to development).
Town Planning
Law
Accountancy
Construction
would all be good fields to get into in my opinion.
It's illegal to rent them out in Vic, SA and QLD I believe, other states is fine as far as I'm aware. Youd have to seek legal advice on that.
I wouldnt rush out to see a town planner yet; dual occupancies usually are not very complex applications, you could do a lot of your own research. First step is to obtain a copy of the Local Environment Plan and the Development Control Plan for your Council area. They are quite hefty documents but they will have specific sections that are relavent to your sort of proposal. Have a read through them (take your time with this). Once you have done this then ring up the Council and ask to speak to the Duty Planner, they can answer general queries regarding your proposal and give you some preliminary advice on whether it is feasible.
When it comes to lodgement of the DA I wouldnt go for a town planner; the job isnt complex enough to warrant that (i assume its just a dual occupancy development from your initial post). Engage a good draftsmen from the local area with enough experience to handle lodgement of the DA; or you could even do it yourself.
Don't rule out the dual occ, most council's will accept minor variations to development controls. Once hard stand car space in front of the existing building line could well be supported if you provide adequate justification. Landscaping to soften the impact wouldnt go astray.
Ritchie, thanks for the reply. I'll take all of your advice on board.
Yeah that was the dilemma I faced when considering this purchase. As a pure investment the numbers stack up pretty well; however, I was also looking for a location that would be convenient for me when I did need to move in permanently. The clause on absences that Terry pointed out was interesting; I was always factoring in CGT upon sale when I was considering this option.
Anyway I'll make sure I have it all covered by the time settlement comes around. Cheers again.
Perfect, much appreciated.
Thanks a lot for the tip, I'll be sure to trawl all the relevant pieces of legislation to see what I can find.
Cheers for the responses, was just throwing it out there.
There's nothing stopping me from moving in initially (i should of clarified that I haven't moved out from the oldies place yet as I'm only 20). It's purely a financial decision as I currently have low expenses.
I am aware that it's illegal to simply rent the place out whilst claiming that I live there, however I was under the impression that if I were to live there for the 6 months that I could legally rent any spare rooms as long as I declared the additional income on my tax return…
@terryw – what are the regulations regarding CGT if I were to rent the unit until the mortgage is paid off, but with the intention of eventually utilising it as my PPOR? Is there a certain time frime that the premises needs to be utilised as your PPOR for it to become CGT exempt?
Ta
I wouldn't consider it fraud. If I were to have it as my private place of residence for the required 6 months and were to rent out the spare rooms to flat mates that would be perfectly legal.
Just wanted to see if there were any other ideas. Go easy.
cheers
