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Out of curiosity if your first purchase is off the plan and its ment to be your primary residence but you decide to sell if before completion, I would assume then this would make it an investment property, and if that is the case I would forefeit the FHOG but would it be considered that i have already purchased my primary residence..and any future purchases would then be not entitled to being my PPOR , for tax purposes.
Have decided to go with a slightly cheaper off plan purchase in an adjacent suburb in melbourne, could anyone reccomend a good solicitor who knows the in and outs of off plan purchase.(either in melbourne or geelong)thanks
Thanks for that..i guess this is where your building warranty insurance will kick in..
Answered my own question by calling consumers victoria…warranty insurance still valid..
Well bottom line at the moment the builder wants 100k more and i am not ready to budge..so at stand still might lose the property..oh well… I have a question if one buys an off the plan property and signs contract with developer and not the builder is the builder warranty insurance still valid.. ?? Hmm point cook wouldnt pay anything more than 500k for a mcmansion there
Thanks all..
Scary stuff thats for sure..
The property is on its way ..looks like completion will be in the next 6-8 weeks.A house about 4 rows down sold for 1.29. The house 3 rows down being advertised for auction in excess of 1.35 mil(527m2).These are all resales.Slight alteration to size of this house its actually slightly less than 500sqm.In terms of my job i see where your coming from …I have income protection insurance for health if needs be…. The first 2 yrs this will work as an ivestment property with the lease back and all (will try and negotiate on the 6%). The price of this house not increasing well thats always a risk…if one doesnt do the homework there is always this price to pay. Prices in this suburb have been going up 10% on average yearly. The property is within a 10km radiusof melb so it should carry on , but with subprime etc….?? Has anyone actually purchased one of these display houses before? .Thanks nucopia; will look into it, the property should be ready by the end of the year. Does anyone know of any good property lawyers around, would appreciate a list of names and contact details. Any idea on the accesibilty for first home owners grant/
On a totally different note: I have come accross another add by a company for self service apartmetns whereby you buy the apartment and the company running the self service apartments pay 6.5% of the purchase price back to you as a monthly income regardless of tenancy and you pay no on going fees, All furniture within the apartment is your and I can claim depreciation on it. The lease with the company lasts for 10 years so 8 yrs left. I dont see very much grtowth in terms of Cg but still with negative gearing and tax benefits seems pretty good deal; Any thoughts anyone
Thanks..exit strategy..i havent really given any thought to an exit strategy..any suggestions would be welcome…
Thanks geosan, in my case the hotel rents the rooms out and as i understand it all repairs will come out of the hotels 40% profit cut..but i will definitely look into it.. Since i have been living in the hotel i have been observing the occupancy rate and its pretty good plus am buddies with the concierge and he has shown me the occupancy rates first hand. The electricity bill is something that one just has to deal with i guess, Is this tax deductible..? In your case geosan is the agreement you have with your hotel such that the profits are 60% to 40% favouring you… thanks for the info
Just contacted to GM of the hotel ..the deal they are offering is that if i lease the apartment back to hotel (apartment value 160,000), they will pay for whatever additional stuff needs to be bought for the hotel. The room rate goes at 120 a day and i will receive 60% of the monthly income from the room rate and the hotel will receive 40% of the income (and from their share of the income they will maintain any daily / monthly upkeep). I will additinoally have to pay the monthly electricity bill…..The hotel has chains all around the country so seems fairly well established..coinidentally i have been living in an apartment in the hotel for the last 13 months just needed a place next to work..and worked out ok for me..so i havent noticed any administration disputes, although the hotel cafe is undergoing refurbishment over the next 3 months….
Personally my thinking is 160,000 i could pay that off in 5 years max without any rental income, but with rental income it should clear faster than that. So i will be with an IP that should give me a steady income ..i know that there is the issue of my total CF being taxed, but still it would prove as a source of steady income. …. or am i showing how naive i is…[blink]
PS shake the disease yuo mentioned problems with negative gearing property, what specifically may i ask..
Yeah was talking to some guys and that was the conclusion that it would be more CF than CG, and this would then incurr tax, whereas a property that was more CG would then only incurr a once off CG tax and that at possibly 50% off…still looking into it so will keep asking questions as i stumble along..one other question i have applied for permanent residency and am living in WA, will purchasing an investment property disqualify me from getting a first time home loan buyers grant when i do finally purchase my first home..any thoughts..
Thanks fastlane, what do you mean by rental pool vs individually rented / how would this affect me ?, Would it also be true to say apartments like these appreciate at a slower rate than normal apartments(ie ones not based in a hotel)…
