Forum Replies Created
What is it that you do again, Xenia ?….
Only kidding, just trying to stir it up again.I have to agree with Daz and Wayne.
No reason to hide from what you do.
Its not against the law is it ?You will always get the naysayers and doom and gloom merchants, and those with a narrow perspective that respond out of ignorance or envy.
Screen out the positive ppl from the negs in your interactions, and spend as little time with the negs as possible.
They will be detrimental to your success.But seriously, what is it that you do with regard to property ??
A few forumites might be interested in the service..kp
Well thems rules ain’t they Apostle??
If you didn’t bang them pegs in the ground and just went for it, then that would be ‘no rules’But seriously, we are doing a subdivision in Qld, and the rules are no different from elsewhere in Oz.( obviously not!)
You have to consult the council, and get a consultant town planner on board, as well as an engineer, etc, etc.
This is for a land subdivision where you are carving up the raw land and creating individual blocks with seperate titles.During this consultation process is where you will get your costings as well, usually via quotes.
It also depends on what sort of subdivision you are talking about Fluffy.
For a smaller dual occ strata or green title subdivision, the process is simpler and much cheaper.
You can usually get a surveyor to organise the whole job for you, including getting quotes and lodging all the necessary paperwork.
The last two dual occ green title subdivisions we have done cost $18k and $23k which included the demolition to bring the block back to cleared land ready for re building.The land subdivision is going to cost $???.??
Its more like a ‘how long is a piece of string’ type question.So it depends on what you are looking at when you say ‘land subdivision’ ( ie…you need to be more specific)
kp
The final inspection before settlement is there to ensure that everything is in place as per your initial viewing when you put the offer in, to verify the appliances are in working order and have not gone missing, etc.
Unless you have included a clause regarding the place having to be clean or cleaned, and rubbish / junk removed, then you really do not have a leg to stand on.
You are at the mercy and goodwill of the vendor, and they are under no obligation to do anything legally, especially if there was no mention in the contract regarding the condition of the place.
Morally it may be another matter, but you are appealing to human nature here.Let us know what you did in the end, and also, chalk it up to experience for any future purchases….maybe consider dropping a hint the agents way about them considering including a clause in the sale contract where there is the possibility of a property being left in an unacceptable state at settlement.
kp
Whoa Kwaka boy…..
The first thing you can do is learn some net etiquette.
When you write in caps, it is the equivalent of SHOUTING !!!Try using lower case writing…its also easier to read.
What you are suggesting sounds interesting.
It can be win/win for both parties but it is very important that you document everything in the form of an agreement, more specifically a joint venture agreement.It sounds like you have had a go at this before by your post about the previous development.
Out of interest for all the interested forumites here, would you mind giving some details on what happened, and what went wrong?
I am sure there arte many here who would be keen to learn from your experience.kp
Sounds a bit strange…
Are you saying that you are managing to borrow 86 to 89% of the purchase price ?
You are usually struggling to get 80% lvr for a commercial property.
Can you explain what you mean by your 86 to 89% ??kp
babu,
you have presented a lot of suppositions and allegations.
Sounds like most are hard to prove.Best thing for you to do is move on and find something else.
No sense getting hot and bothered over something you have no control over.kp
I’m not trying to advertise the property…
Was just adding some numbers to clarify the situation.These properties tend to sell to the local market anyway as there is more demand than available properties at the moment.
Kay does have a point….based on the market price its a bit touch and go. Depends what interest rate you are paying I guess.
kp
Waiting….waiting…waiting….
Any news yet Rob ??
HEY !!
Thats my property…
So I can post the figures right??
Using typical lvr of 80% would allow loan of $340k
Interest at 7% would be $23.8k
Rent at 600pw would be $31.2k
Rates, taxes, management, insurance should be approx $5k
So there will be a surplus (pos geared)of approx $2.4kDepreciation may make it slightly negative on paper, hence generating a tax refund which will make it more cashflow positive.
kp
Sure Kiwi,
The simple solution is for you as the individual to guarantee the loan.
We have just completed two such applications, one for a unit trust with a corporate trustee, and another for a hybrid discretionary trust with a corporate trustee.
Both were approved but they wanted the financials of the individual director to the trustee companies, as well as a guarantee from the same individual ( ie…me )Beyond the extra scrutiny, extra delays and additional paperwork that needed to be filled out & signed, there were no problems.
Both entities were new and had no history or financials.
Hope this helps
kp
Maybe if they were paying market rate for the house and market rates for the finance ????
If you purchased the property for under market then you can quite successfully offer it under a wrap at the market price.
And it is not inconceivable to offer below market finance rates ( honeymoon rate period) and still have a successful ( profitable) wrap.
TOny Cordato is excellent to talk to.
Better still try Rick Otton at his website and post youir question there.
You will get a more informed response.kp
Thank you Jay…
I have resorted to being a lurker, but I couldn’t help but reply to this post.jsandso, the very link and example you quoted gives those details and the fact that the capital gain once treated appropriately, is added to your taxable income.
taz, you are also correct…it is better to sell in July as you do not have to declare the gain till you lodge the tax return at the end of that financial year ( ie…12 months or more in the future) hence you will have acces to the taxmans money to use in the meantime, which is great if you can plan the sale for July, and also if you can use the money for some useful gain till it has to be remitted to the taxman.
kp
Not necessarily Terry,
StuartW wrote an interesting article ( it was posted on the other forum) that was published in API which detailed how a number of investors can joint venture via a unit trust where each investor is only liable for their percentage of the borrowings.
It was acceptable to the lender as they still had first mortgage security over the whole property, even though there were a number of loans issued to various unitholders.
The key was it was the same lender for all the loans, and that the loan conformed to normal lvr criteria.I’ll see if I can dig it up…
kp
Oh dear,
The amount of misinformation masquerading as fact being spread around here is staggering!!Antonio is correct in that if you defer the sale of a property till after June 30 you will effectively end up paying less tax ( assumeing that you have sold for a profit and are liable for CGT)
Misty is also on the right track in that if you sell a property and make a CG of 50k, then that 50k is added to your income (eg..50k income) for that year, and you will pay tax on the total of 100k at your ‘marginal rate’.
The point being that you have to calculate the CG first, ( ie…deduct any capital cost and expenses and apply the 50% CGT concession if applicable to arrive at the actual CG) before you can add this CG to your normal income.
If you are already in the highest tax bracket, then sure….you are paying CGT on all the capital gain at the top tax rate.
If you are in a lower tax bracket, then the capital gain may push you into the highest tax bracket for a portion of the capital gain, thus you pay tax accordingly ( ie…some of the capital gain is paid at the highest tax rate)
Capital Gains Tax has no specific rate…it simply highlights the fact that you have made a capital profit and are liable for taxation on that profit at your marginal tax rate.
How would I know ? I have just sold two places last week and one fell over two days ago, and as Antonio suggested, I am now seriously having to think about delaying the sale of the second place till after June 30 to take advantage the tax saving.
Hope this helps.
kp
Hope this helps.
Good stuff Rob.
Lots of useful links on the one site.Hey Pelican!
I thought you were on your way home this year.
What are you still doing up there?Hold back their payments. Money talks all languages.
Self defeating…
Gives them another excuse to take longer…and your holding costs are still accumulating.
Keep hassling them with phone calls, emails, etc.
Give them the opportunity to do the right thing before issueing the ultimatum that if they dont perform, the “advise you have been given will be to lodge a complaint with the builders dispute/complaints tribunal”
This body has teeth and can revoke a builders licence.This is exactly the advise I was given ( by a legal person) and it seems to have worked.
Good luck with it !!
Good one lifeX……lol
And then waving to them with a big cheesy grin when they pass you and give you the inevitable ‘finger’.
As in ‘have a nice day’I always do that when someone does the “road rage” thing to me…
Wave back in a friendly way ( albeit with a pronounced and prolonged wave)….seems to make them even madder…..all that wasted energy and steam……..lolKP
Originally posted by Mad-Cat:if i had a block that was two small to sub devide could i build two houses on it to rent out if i kept everything in my name?
No Probs JHopper!!
At least you tried…[biggrin]But MC specifically said the block was too small to sub divide…hence it has to be No.
The only way around this, or to confirm this, is to ask, or petition the council and see if they will change their mind ( despite the zoning ) else request a special dispensation, via the Minister’s Department.
But the simplest solution is to follow the existing zoning…and comply with it.
KP
