You would definitely need to check with an accountant, I agree. I was suggesting that you could move into a trust owned property, but it would have to be done at arms length and not sure what the ATO allows.

Hi,

I will give my opinion on your questions, I am sure some other people will have different ideas:

1. It is probably better to buy house number 2 in your personal names to keep the CGT exemption. However, if you expect a bigger capital gain over time with the first house, you may want to keep house number 1 as you PPOR for tax purposes (and use the 6 year rule- there is lots of info on that on this website) to keep it exempt from CGT. In this instance it might be better off purchasing house 2 in a trust.

2. You will calculate the CGT apportioning the period of time it was your PPOR. For example, if you kept the house for a further 10 years as an investment property after having it as your PPOR for 5 years, you will pay tax on 50% * 10/15 * the capital gain. The 50% is for the 50% CGT discount you get for holding the property for more than 1 year, and the 10/15 represents it being an investment property for 10 years out of the total 15 years of owning it.

3. This does not work- once you have paid it into your loan, it is stuck in there. If you withdraw the funds and put it into your offset account before using the money to purchase a new PPOR, the interest on that money will not be tax deductioble as the purpose of the borrowings is not for investment purposes. Redraw is counted as new borrowings in the eyes of the ATO.

Cheers,
Luke

I agreew with Catalyst- I think you could either offer a nominal discount of $1000 or so, or just say that that is the condition of the house and the price stands.

You said that you had the offer within a day of it being on the market so surely there is another buyer out there. Maybe your RE agent could give you some advice.

Also, what is your solicitor doing? What is his opinion? You are paying him for a reason!!!

Cheers,
Luke

Derek wrote:

mattnz wrote:

I have seen a whole shopping centre with a little house in the middle of the car park.

You win:)

Exactly the same thing happened in Pitt St Mall in Sydney. When Westfields were developing the new Sydney City Westfield, they tried to buy all of the shops in that part of the block. One person didn't sell (it was an shoe shop in a pretty old building). Westfields tried to negotiate and couldnt get the shop at the right price and so they went ahead with the develpment and boxed in this one small narrow building with their enormous shopping centre totally surrounding it. The shop lasted less than a year before it closed and now it has been demolished, I am assuming that Westfields finally managed to buy it at what it probably a bargain price.

I am guessing that the owner of that shop lost lots of money on that one!

Channel 10 would have made good money I think- the advertising revenue generated would have been huge. Also, the in program advertising such as the contestants saying 'Wow, my high quality and reasonably priced LG electronics have arrived, I am so excited!!!' would have been a big cash cow for Channel 10.

The point of this thread is discussing whether the properties themselves made money as investments, and what mistakes that contestants made. Channel 10 made money, it was probably a cheap program to make with lots of advertising revenue.

As far as investing goes, I think the big mistake made by the contestants was not purchasing the properties at a good price (which to be fair isn't their fault), they over capilitlised (I think I saw they were spening $130k renovating a $400k property!!!!!) and renovating with emotion not to the target market.

Any one elses thoughts???

Cheers,
Luke

I am not sure about that, I just had a 60m2 detached approved under SEPP. Not sure about the exact definition, but if there is a common wall then I am guessing it will be attached, and if there is no common wall, it would probably be detatched.

Cheers,
Luke

Hi Melcane,

It all depends on the quality of report and the scope of investigation. You could expect to pay between $750 and $2000, but it all depends on how big the house is and how much detail you would like in the report.

Cheers,
Luke

You can get places in Western Sydney for under $300k. Mount Druitt, Seven Hills etc.

Cheers,
Luke

You do not need council approval for these things in NSW- they can be done under the SEPP Affordable Housing Policy so you will just need to get it certified by an accredited certifier. You will probably need to talk to a draftsman for someone similar as there will be things like setbacks, fire rating, BCA compliance that you will have to meet.

You can also go down the road of getting it appoved through council, not sure what would be easier. Either way you will have to do some kind of drawings and meet al of the BCA requirements.

To answer the rest of your questions, you will need it either approved through council of through a private ceritifier. You will be able to get it insured but not all insurers will insure this kind of building. I am not sure about engineers approval, the council or certifier will be able to answer that but if you are just converting an existing building and all of the floors are concrete slabs on ground then I doubt it.

Cheers,
Luke

Where is the property located if you don't mind me asking? I would be interested to know which markets have seen 5-10% capital gains since December.

Cheers,
Luke