Forum Replies Created
A friend had a lot of difficulty claiming the costs of vacant land. Seems that the ATO has to be convinced it could be a viable primary production business.
Better check with a an accountant qualified in this area.
Have fun!
James – you are able to walk from the contrace, provided you have done the necessary steps in notifying the agent/vendor of the problems in WRITING. Anything verbal is only worth what the other parties agree to at any time.
Once again – get professional advice. And – good luck with the deal. Sounds like a fun one for you.
Rob – the interest only loan strategy is used by investors to increase the funding available.
When banks work out what your elegibility is, they look at the LVR (loan to value ratio) and the DSR (debt service ratio). The second uses a calculation that sums yout total commitment in loan payments.
As the payments on interest only loans is listed as being lower than P&I loans, you thus have a higher borrowing capacity. You are still able to make capital repayments if you wish, but you are not obliged to, thus extending your DSR ratio.
Cheers Len
James007 – going by what you have said you probably need to get a professional opinion. The vendor is entitled to up 10% of the purchase price if you terninate a contract without proper cause. While it sounds as if you have the right of it, there is no telling what the legal interpretation would be. I would suggest getting immiediate help.
Luke.. Len
Lidia –
onselling is a common part of otp dealings. Easiest for you is to simply contact the agent/organisation that arranged your initial purchase. They will happily act as your agents in this matter. Of course, you are more likely to have some success if all of the otp units in the development have already been sold.
The actual process is that the contracts will be organised such that there is a back-to-back settlement.
Your original purchase is settled first, followed by the settling of the onsell purchaser.
You will be liable for CGT if there was any profit on the sale, but as your purchase date (contract date) is more than 12 months, you will also be eligible for the GST discount if you wait until your contract is at least 12mths old.
You will be paying the agents fees on the sale. Part of the deal, but if you use the dsame agent that made the initial sale to you, they may be amenable to giving a bit of a discount.
Having passed through Broadbeach last week, there appears to be a lot of development on the beachfront all of the way from TweedH almost to Brissy. I saw many 2xbed 1 bath 1 car properties for sale in the ares. Even on Cavill Ave, the prices were only 30k higher. Given the expexted cap growth in the area, you seem to have a well priced unit, though you will be more likely to achieve a better result closer to completion time.
Cheers,
LenK
Good luck with the new IP.
Your contract documents should tell you abut the Body Coprorate. It is basically responsible for all common areas as well as the building(s). That includes all of the maintenancce and nsurance including public liability.
You will need to take out your own insuranve for fixtures & fittings (stove, carpet, etc>) as well as landlords insurance.
It is porbably worth caling the Body Corporate amanger and getting a hold of the rules and the last set of accounts. That will give you some insight to the state of the site.
Cheers
As someone sitting near the bleeding edge of this ‘baby-boomer’ phenomenon, perhaps some of them are doing what the remainder of the forum dwellers are doing.
1. Trying to buy back their time with astute investment.
2. have already sold the former family house
3. embarking on a property investment to improve inadequate super
4. not looking forward to working until 75 to suit the Canberra suitsI have no plans to change housing. It will be a few years before the retirement villages beckon – say age 85?
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