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Thanks for the responses, very thought provoking.
Approx 65% of my gross pay has been going into my negatively geared IP’s for the last two years (so able to claim the 50% CGT discount method). I am also paying off my own mortgage which is non tax deductible so I am wanting to pay off that mortgage and then start up again in a more tax effective way.
The gross profit is almost $800k (not bad for 2 years) so less expenses the CGT is around $175k. I other IP and had heard that you could transfer the CGT debt to that until that one was sold later down the track. I’m not sure how accurate that is tho’ (probably not).
My properties are in my own name, not a business entity.
would you recommend waiting until after June to sell so that I can place the CGT into a term deposit until the last date to lodge tax? mind you, then I’d need to claim the interest earned in my tax anyway.
Thanks again, my head hurts [blush2]apologies for the typo, units were purchased Oct 04 not 05, therefore have been owned over 12 months.
HI,
I rang my local shire last year for the name and address of my next door neighbour (he rented out the property) and they were happy to give me the details. My local one also has a big folder on a desk at the office that anyone can access, not sure if this is the same in all offices but worth a try.We subdivided a block my mum owned and put the new block in my name and I had to pay stamp duty at the amount the valuer general valued the block at the time of title transfer. Love and affection unfortunately had nothing to do with anything with our family transfer. we live in Rockingham WA.
when I first started looking into Geraldton I bought myself a fold out street map of the area. Then while scouring the net for properties and looked on the map for the areas and started to get an idea of the pricing of where they were. imagine my joy when I finally made it up there to discover I recognised street names and suburbs as I drove around. I was interested in the beach suburbs and in the vicinity of shops etc and it took me around six months of study before I found my property.
Good Luck, having a RE keeping an eye out was a great help too as they often get the good deals before they get advertised and can contact you quickly. see my prev blog about a good RE that I used up there. (Leanne boath, Roy Weston Gero)Hi, I found that driving around the neighbourhood on green waste week can be very rewarding. I recently drove past a place that had cuttings of hardy frangipani’s. I took them all, around 15 of all lengths up to 1.5m and within 8 weeks they are all flowering and looking great in my IP garden. I buy my plants from swap meets for half the price of nurseries. Never underestimate the wow factor that can be found in plants and nice garden. I also use scorcia (orange stones) to lessen the use of grass. I spent $300 at a local nursery when I visited my Ip’s in Geraldton late last year and the garden was looking great (block of 4 units) unfortunately the tenants didn’t water the hardy plants (flax’s) and they died. Ideas would be appreciated in what I can do where tenant assistance isn’t required
Hi All,
I bought a block of 4 units on 2000sqm in Oct 04 in Sunset Beach 5 mins north of Geraldton (for those who know the area you turn left towards the beach at the big round about on Chapman Rd). In October last year a new development commenced in Sunset Beach with housing blocks starting from $102,000 and stage one to seven quickly selling and new releases were opened months ahead of time. for those of you who prefer building new houses this may be an option. the link is http://www.sunsetbeachwa.com
I still recommend buying in Geraldton, my agent was Leanne Boath at Roy Weston who took me around several properties during my weekend trip ( RE also PM them for me). I didn’t think I got a bargain at the time and in hindsight think that it was because I bought at a higher price to realise the higher returns that having 4 properties brought in rent rather than one, however with the growth Gero has enjoyed in the last two years I am very pleased with the CG Ive achieved so far. I’m looking forward to seeing what other amenities, restaurants, parks etc that the developers are currently doing in Sunsets which will raise my IP’s even furtherHi Jan, I bought a block of 4 units in Sunset Beach, Geraldton in Oct and I’m very pleased with the way they are going and would consider buying again in Gero. I am also interested in Two Rocks, near the beach, the Japanese have pretty much bought the suburb for expansion so money will be moving in there. would like somewhere closer to home for no other reason than convenience, but having done the reno thing and wanting a rest from it, further afield would be better for claiming travel. Developing was a good experience and would consider doing it again, but with the long building times I would be thinking of subdividing, providing the facilities and then onselling as a vacant block. There’s alot of that going on down here in Rocky and has been for the past 18 months or so. Good luck
LisaHi,
-I used an old pine dresser in the bathroom. I replaced the glass in the top cupboards with mirrors and the benchtop with a new kitchen sink, looked great!
-ripped out the old kitchen and bought two solid jarrah ones out of the paper and mixed and matched the pieces to get what I wanted.built 2 feature brick walls to hold up the bar and ran railway sleepers along the top to give an old fashioned look.
-knocked a wall through the kitchen to lounge room using railway sleepers to hold up the wall on all three sides, including the machinery to knock the wall through it cost a healthy $93.
-used textured paint (polytex) throughout the house as the walls were in a shocking condition.good luck
I was lucky, I bought my front block (three streets from the beach in Rockingham) from my mother so did the the subdivision etc myself. It was a huge learning experience and looking back there are a few things that I would do differently but overall the finished project was worth it. This gave me the equity to go to Geraldton and buy my first IP.
where area’s are you looking in? I know where I am now the prices have skyrocketed in the last two years.Hi, I subdivided a duplex block in Rockingham approx 18 months ago.
I went to the Local Council/Shire office and purchased a copy of the plan for $22.00. The land size of 1012m2 made it perfect for subdivision. I provided this to the surveyor.The surveyor cost me $1575 to come out and measure and provide a plan that they submitted to the local council for approval. The existing house is on the back of the block. I also built on the front block. Surveyor gave options on subdividing. Bulding Strata Title or Survey Strata Subdivison.• Building Strata Title: Plans submitted at State Planning Commission for subdivision of Land, no house plan required. Process can take around 4-5 months. No building allowed to commence until subdivision complete.
• Survey Strata Subdivision: Plans submitted at Local Council Office for approval of house to go on Land and subdivision to take place after home has been built and landscaping/fencing has been completed. Contact with Council when house is at roof height for initial inspection. Process can take around 3 months from roof stage to completion of landscaping, however building can commence immediately.
• I chose Survey Strata Subdivision so that I could commence building straight away. Costs of $1575 included measurement and plans for block, government statutory fees, valuation fee, shire inspections and lodgement fees, did not include application for new titles. The payment was for 75% after completion of on-site surveying and balance of 25% after shire inspection. We couldn’t complete and lodge at shire until building at roof height. Shire had already approved building license so plans drawn up by builders were ok for the block.
Surveyor provided copies of:
• Completed Form 5, strata titles Action 1985 sections 5b(1), 8A, 22(1) giving Strata Plan Number. Description of Parcel and Building, certificate of Licensed Surveyor dated 12/9/03 (lodged at DOLA).
• Completed Form 7 Strata Titles Act 1985 sections 5B(2), 8A(f), 23(1). Quotes Strata Plan Number. Certificate of Local Government approval. Signed by Shire Building Services Manager showing that subdivision had been inspected and approved to local shire standards. Also advised that as division had been approved by Local Shire it was exempt from requirement of approval by State Planning Commission. Shows Unit entitlements of each Lot Nr ie Lot one-52 and Lot two 48. From there the paperwork was sent to my settlement agent who arranged the name changes/title splits etc.
Hope this helps, I am thinking that you are wanting to subdivide and then sell off the vacant block. We were told that if we did this then services needed to be on the new block prior to selling. different councils may have different rulings, best to check.
Regards
LisaHi, you can’t buy a building block in the area. They are all oldies knocked down and built by the owner/builder. I think it would be the capital growth within a two year period which would make this deal a worthwhile one rather than the quick buy and sell off. prices have nearly doubled in 18 months and Ive been told that the area hasn’t reached it’s potential as yet as the developments here have only just started.
HI All, I recently subdivided a 1012sqm into two blocks, the old house was on the back, I built on the front. Ive posted the associated costs involved on another thread on this site, so if you search under my profile you should find them. I have also sent them to Calvin34 on a spreadsheet and he is putting in the formula’s so that they can be used by all. Good Luck!
Hi KP,
I can see where you are coming from and definately agree that it has been factored into the price. I was shocked at the going price when I spoke to REA as I have lived in the area for years and it’s only taken off in the last 12 months. I would advise to demolish the front cottage and build two strata’s. My front 4×2 was valued at $440,000 and the back (original house)4×2 at $380,000 in Jan this year. I was also told I could expect mine to reach half a mill within twelve months. If you type in 6168 postcode on any of the RE searches you’ll get an idea of the prices in the Rocky Beach area.
There are already some townhouses and villa type units in the area, and the apartments will be everywhere (I had been looking at buying a serviced apartment here but decided against it).
Emotionally, I would buy across the road in a flash if I had the resources (or a share). Taking the heart out of it I still think it’s a good buy but maybe not a fabulous one.[buz2]
How does that sound?I think there are a few of us who want it also. Does anyone know if it is going to be reprinted soon??
Hi Priya, Having never been to Sydney I can’t comment on the area. My mum lives in the back block of my property (I bought the front block from her and built my new home).
I can say that she feels very safe being back from the road and it is lovely to see the property open up from the driveway into a hidden away oasis. We were very surprised that her home retained alot of it’s value with the difference being only the 20%. Again I would have to say it would depend on if there is land available. In our older area the only way to get land is to buy an old place and demolish it. We are lucky that the blocks are all subdividable.If you go ahead with it send me a PM and I’ll send you some photo’s.
Good Luck
LisaOriginally posted by lisabellan:Hi Priya,
I am a bit confused and have read your post as you are thinking of buying a back block on a battleaxe property. Apologies if this is incorrect. Having built on the front of a battleaxe property in the last twelve months I can say that a recent valuation of both properties showed only a 20% difference in favour of my front block with new building on it, compared to the older property on the back. Of course, it would depend on whether you are looking in a sought after area where blocks are scarce. I hope this helps, good luck.Hi Priya,
I am a bit confused and have read your post as you are thinking of buying a back block on a battleaxe property. Apologies if this is incorrect. Having built on the front of a battleaxe property in the last twelve months I can say that a recent valuation of both properties showed only a 20% difference in favour of my front block with new building on it, compared to the older property on the back. Of course, it would depend on whether you are looking in a sought after area where blocks are scarce. I hope this helps, good luck.Hi, As there was an existing house on the back of the block I was restricted in sizes etc. The back block is about 580sqm which includes the driveway down the side and the battleaxe area for the turnaround. Mine in the front is 490sqm. I have built a 210sqm beautiful 4×2 and have a backyard of about 4 metres which runs right along the back. its a shame we can’t add attachments or I could show you the layout of the land. The land can actually be divided three times, my area is going green title in the next twelve months, but as the back house is staying and I was building for myself I am happy with the two. I have remembered a bit more about costs since I wrote the above so you should budget more for around $15,000 to cover fencing, crossover and driveway of existing property. Im pasting all of my stuff about the subdivision onto a word doc which once finished should be quite comprehensive on the start to finish.
Good Luck, what area are you looking at and is there dwellings on it already or starting from scratch? Dependant on those things will be where your next move may be.
this is a copy of what I posted in another forum tonight:
I started by getting the plan from the local council and found out the local rules about sizes and zoning, then contacted a surveyor to look over the plans and come out and measure up. He will be able to give you a plan that can be submitted for approval and depending on what sort of subdivision you are doing, (there are a few different types survey strata vs building strata) and will be how you make the next decision.Hi,
I subdivided last year in WA. I started by getting the plan from the local council, and finding out the local rules about sizes and zoning and contacting a surveyor to look over the plans and come out and measure up. He will be able to give you a plan that can be submitted for approval and depending on what sort of subdivision you are doing, (there are a few different types survey strata vs building strata) will be how you make the next decision. There is another forum where there is more detail from a couple of days ago. You will find more info/costs in that one.
Hope this helps
Lisa
