Thanks for your response Terry. Well here is the problem. We didn't actually live there for the first 6 months. We only directed our mail there. My concern is the ATO could contact the electricity company and get confirmation that another account(name) was registered at that address at the time? Am I being paranoid?

Thanks again for all your…[Read more]

Thanks shape. I’ll be using 120,000 from a loc to fund the 20 per cent deposit and the closing costs plus the granny flat. So once the granny flat is constructed I’ll have 120,000 of my own cash in the deal. I’ll have a stand alone loan for 172,000 on the house. That’s why I’ll need a revaluation. So say it comes back at 290,000 with the granny I…[Read more]

Thanks guys, And Petria, 5.94 sounds incredible. Are there any tricky conditions attached?

Hey guys, I had another question. Luke, you said you don't need approval under the sepp affordable housing act. This is true. But you're only allowed 40sqm detached and and 60 if it's attached. What constitutes attached??  

Thanks for that advice guys. These were my thoughts and I'm sure you'll correct me. 1 – If I buy in a company structure. The profits held in the company are taxed at 30%.These funds can then be used for future purchases etc. If I need to access some of the cashflow, I can then distribute that money to myself or my wife etc in the form of emp…[Read more]

Great thanks guys! I've looked into it and as some of you have alluded to, it's very difficult. Does anyone know where I could buy a second hand granny flat to keep the cost down? Or could you recommend a cheap granny flat provider? Thanks for all the great feedback.

Great thanks guys! I appreciate all the feedback. Dean

Thanks Terry, Some great thoughts there. With the first two options, would the owner have to pay any CGT?. One property(they're side by side) is already his PPR . If we're transfering the properties to a new entity, but he's not selling them, then he can't be liable for CGT? Is that right? Also with this option – Get the owner to do it all on his…[Read more]

Thanks Terry, Some great thoughts there. With the first two options, would the owner have to pay any CGT?. One property(they're side by side) is already his PPR . If we're transfering the properties to a new entity, but he's not selling them, then he can't be liable for CGT? Is that right? Also with this option – Get the owner to do it all on his…[Read more]

Thanks for that feedback guys. Very helpful. And Steve, I agree with your sentiments and think that a town planner might be the way to go in terms of getting a definite answer. Cheers guys Naremburn

Ok great. Thanks guys!

Thanks a lot guys! That was very helpful. One last question to clarify trusts. Say I'm using a family trust. The trust buys a property, I develop it and make $100,000 profit. Does this profit sit in the trust? Untaxed? Until it is dispersed? and then it's taxed at marginal rates? So In theory you could do many deals and leave the profit in the…[Read more]

Thanks MR501, I really appreciate you taking the time to write back. Cheers

Great, thanks for that Derek.

Great. Thanks Jamie, I really appreciate you taking the time to provide that feedback.

Hi Bronwyn, Thanks a lot for your help. That's great! Dean

Hey guys, Yep I think this will really slow the market down. And if the other big 3 follow with their own rate hikes it could get really interesting. Especially in the mortgage belt areas like Sydney's outer west. I was checking our rates from a few years ago, and people were getting loans at 5% SVR. Now we're 2% higher. That's huge for the…[Read more]

Thanks for taking the time to provide feedback guys. And Terry, I'll look into what you were talking about. Cheers Dean