Forum Replies Created
Thats what the state revenue office charge. How much is it in NSW? I am working on a feaso for a Syndey client at the moment.
Terry – $200 down here for stamping a trust.
Rob – Looks like l am little late. But would have been more than happy to have a chat with you.You will probably need the help of a town planner.
Try contacting
Breece Gevaux
Hub Town Planning
Ph: 0438 026 077
Email: [email protected]He would be able to tell you if what you are looking at doing is possible.
Regards
Maurice
Hi all
Just to clarify generally speaking, interest is deductible if the borrowed money is being used for income-producing purposes. If the borrowed money is being used for private purposes, then interest on this part of the loan is non-deductible.
Most of you probably already knew the above but l guess the question that you really want answered is interest incurred before a property produces rent deductible?
The short answer is 'Yes'
Interest can be deductible during the period before a rental property is actually rented to tenants and before it is available for rent.Common examples of situations when interest can be deductible include the period when:
1. a rental property is being built
2. work is done to a rental property after purchase to prepare the property for rental and
3. a rental property is taken off the market for repairs/improvementsBut the onus is on the landlord to establish that the intention was always to use the property for income producing purposes.
In your case until you actually use the money to purchase a property you will have a hard time in convincing the ATO that your interest is deductible prior to your property purchase.
Regards
Maurice
Hi Taylor
Prior to answering your question a little more clarification is required with what you mean by "the depreication schedule shown that the property has $7,847 for this year."
Do you mean that you have $7,847 that is deductible this year for depreciation on the property or do you mean that there is $7,847 of capital items that are available to be depreciated for this year?
If it is the first case than with what Terry said depending on your marginal tax rate the property is going to be around the breakeven cashflow territory if not then you might find that property to still be in negative cashflow depending on how much depreciation is allocated for this year.
Regards
Maurice
Watching the finale l thought wouldn't it have been a more interesting show if they had bought 6 houses where you could build a unit in the backyard. Have a budget for the unit and a budget for a cosmetic reno to the existing house.
Cheers Maurice
Hi Tigermiger,
Listen to the advice on this forum and you won't go too wrong. Great place to start is the section 32 and a chat to the council as well as get the council development guidelines off their website. Be sure to engage a town planner in what you are planning to do as they will tell upfront whether you are in the ballpark of what you are trying to do. I have meet with Breece and would defintiely have a chat to him, he is a very experienced Town Planner. <moderator: delete advertising>
Good Luck with the open tomorrow.
Regards
MauriceTotal entertainment and very unrealistic as it didn't take into account stamp duty, prizes won, selling fees, interest costs and loss of income from their day jobs while they were renovating. Therefore none of the houses made a profit. Hopefully channel 10 covered all these costs with advertising revenue it would have been a pretty expense production.
Cheers Maurice
Hi All,
Just got 6.9% variable through investec with 6.39% 3 yr fixed or 6.40% 2 yr fixed.
Regards
Maurice
Hi baysider,
Just wondering how your backyard project is going? My business partner and l have a residential construction company and would be happy to discuss your project with you if you are looking for a builder to JV with you on this project, we are located in the south eastern suburbs of Melbourne.
Regards
Maurice
Hi Peter
What state are you looking at doing this development?
Regards
Maurice
Hi WeathlyJVD/Sash,
I would be more than happy to help you guys out if you needs some estimates on build costs send me a PM and we can discuss further.
Once you have endorsed council plans l would be more than happy to help you out on the construction side of things. My business partner and l specialise in the construction of dual occs and multi-unit developments especially in the south east of melbourne.
Regards
Maurice
Hi Matt
How did you go with your sub-division?
Regards
Maurice
Hi Paul
Thanks for your reponse.
I've meet with Lewis previously so l will get in contact with him regarding this situation.
Regards
Maurice
Hi
There are a number of factors to consider to determine build cost. These are just a few that come to mind after a heavy week so these are not necessarliy the only factors.
1. Size of the unit and the inclusions and finishes you are considering.
2. Design is very important when you are building a double story as you can spend a lot of money on structural costs if you don't design load bearing walls properly.
3. Site conditions are also necessary to consider such as type of soil you are building on and the fall of the land. I have seen a number of projects where the site costs alone can blow the profit in the project.A number of builders can give you a rate per sqm to build but you need to be careful with that as you will find that the bigger the building the lower the rate per sqm.
Hope this helps in some way and good luck with your property developing.
Regards Maurice
Hi PJ,
What state are you located in? What size are the deals?
I might be able to help you out if you can provide some contact details. You can PM me if you prefer
Cheers Maurice
Hi Richard,
Thanks for your reply.
Are you able to name the lenders and their products?
Hi Al,
Great work!!
Maybe a couple of slides visually showing the numbers behind the deal would be my feedback.
Cheers Maurice
Hi Dougyman,
At what stage is your development?
Have metricon given you a price specific to your site is that the price of their standard product?
Regards Maurice
Hi Richard,
I understand your comments but whatever happened to the 20 in 12 Investors Rule, which allows you to raise up to $2million dollars in any 12 month period from a maximum of 20 investors without a licence as long as the investors are classifed as sophisicated investors which is someone with a net worth of $2.5 million or have earned more than $250,000 in the past two years to qualify.
Raydenhead – lt wouldn't be worth your while thinking of doing something "under the radar" l would be researching how you could archieve your goals legally.
Regards Maurice
