Forum Replies Created
In small towns often proposed developments never get off the ground or start much later than expected making locals reluctant to committ to buying off the plan.
My suggestion is to get a couple of friendly parties (friends , family but not with the same surname) to buy based on you agreeing in a side contract to buy it back on or before settlement giving them a samll profit. They can protect themselves by putting in some out clauses you know will be tripped. This way you can post a couple of sold stickers and build up some urgency in the minds of buyers and agents. Actually startng the project will generally help as well as it aleviates scepticism that the project wont be built.
As an aside also make sure your fixed price buyilding contract is locked in a a level that makes you sufficient profit as a lot of developers have been caught out by rapidly rising building costs making previouls profitable presales marginal at best.
[builder]
Michael
Yes each state has its own different land tax regime with some aggregating interstate properties as well for determining the amounts payable. Each state government should have a list of rates etc on its websites in NSW its the Office of State Revenue.
The difference with the new NSW system from 1 January is that virtually all properties other than principal residences will pay it now (I have heard estimates from OSR staff that there will be 300,000 new land tax payers in NSW who would never have paid a cent previously.
I had 6 properties under the old system that still were under the threshhold for payment last year (plus a half share in 5 in a separate company.
As far a rent increases go I think at best it gives you an excuse for a small raise but in the end market conditions will determine whether you succeed. The higher costs followinmg GST and higher strata levies etc in Sydney basically did not get passed on with most rents slighly lower over the past couple of years due to supply issues.
[angry2]
Michael
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