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was it used for primary production in that time? This will change your tax.
sorry,
try email direct at
[email protected]Cheers
mickIf the original owners were not subdividing then they may not have had the same restrictions imposed as you are getting as your request is different. For example, I am currently building a duplex behind an existing house, and subdividing them off. As such, I need to have a 6m driveway to the rear duplex and subsequently have to move the power pole to accomodate this. There is already a 3 m one exsisting in the same place, the unit development next door has only a 3m one, but in the interim, rules have changed. Maybe something similar occured in your example. And by the way, if I was not subdividing them and only putting a single dwelling behind (ie granny flat) then I would only need a 3m driveway).
Please PM me the details. I have a JV interested in moving into industrial deals,
Mick
Sorry to point out the obvious, but in 3.5 years when you sell it for $400K, you will in theory be losing money as it will surely be worth more than that. Apart from being benevolent to your Father, is there any reason you would do this? You need not worry about CGT as it is your PPOR and you wouldnt pay it anyway if that was the motivation for the $400K sale price.
MickYou also need to check out the insurance. It falls under a different catagory to normal rentals. Also double check that it is listed as such a rental with council. There are different fire codes etc that need to be addressed if there is more than a certain number of unrelated persons in the house, ie less of a straight residential and more towards a boarding house scenario.
That said, I have friends who have a 5 bed and a 4 bed, both a +ve and both have experienced CG.
Mick
also look up margin scheme for GST.
As for holding, it is my understanding that if you sell a new building in under 5 years then GST is payable even if it is rented out, but check with your accountant and if you get a different answer, please post it.
MickUnfortunately, I think it was up to you to determine what was and wasnt up to scratch. Try checking your contract and see if it states if all works were approved, if so you may have recourse, if not then…………….
What was the advice of your sol/convey.at the time?
Good luckk
Mickditto, except I add the lower bowen basin in QLD. Deffinitely +ve cashflow from day 1 with potential to improve with a cosmetic reno. Prices have not yet reached those of the upper Bowen basin and rents are onthe increase as the new mine goes ahead
Mick
Speak to your accountant about the margin scheme
Double check on the sale of the property. As they would then have cash in their account (or elsewhere) it may be considered "income" and impact their pension. My MIL recieved a compo payout ($70K) and her pension was restricted ($70K divided by pension rate = number of years she was considered to not require the pension).
As a suggestion, call up and ask if they sell their home and move in with you, are they still able to get their pension. Names would not need to be used so it may give you some more info.
MickHey duckster,
Why the need to go to a police station or is it a victorian thing? I have bought and sold many in NSW and QLD and have never needed to do that. Just curious.
MickI assume that it is in a residential area? If so, I find it odd that the council has allowed a block to be sub divided off and not provide services and road access. Nevertheless, if this is the case and it is reflected in the cost of the land, then a trip to the council will give you the costs you are after. They would be refered to as headworks charges, and vary a bit from council to council. You will need to know the lot and DP numbers and the selling REA can give you those. It may pay to ask council if those services need to be provided prior to the sale.
Hope it all goes well, Mick
They look pretty neat!!!! Any idea on cost for them?
Its all about picking your market. The block of land I purchased in Novemeber for 90K has just had an offer of $150K, so I wouldnt go global on the doom and gloom front just yet. As usual, there is money to be made by those who get off their butts and look for it.
Write out your offer and include:
1. price and terms (ie you ask $250K I offer $255K with a 8 month settlement or $$260K for a 12 month settlement)
2. Conditions (ie, vendor to allow access to block for survey, soil test etc, vendor to agree to sign council paperwork as required)You will need to see it from their point of view as well, and may need to offer a clean contract (ie no finance etc) but that can be a second inclusion – why include it if it isnt needed.
You will need to consider public liability insurance for whoever goes there on your behalf, so work it out and include it in your terms. Check with you conveyencor/solicitor.
Not always liked by the selling agent as their commision is tied up until settlement, so insist the offer be taken to the vendor to get the vendors feedback, not the agents.
At the end of the day, it can be done, you just need to find a way to make it win-win for both you and the vendor.
mick
PS if they really need the money now, it probably wont matter how good your offer is, so try and ascertain the motivation behind the sale.I would reread your info. If you are carrying out a "buisiness" of realestate then you are considered trading and as such not entitled to the 50% discount. Well, at least that is my understanding.
Mick
The advice of our accountant when asking the same question was that there is only a tax deduction AFTER a property is purchased. That is you cant go looking and claim the trip. The exception is if it is recognised that this is your JOB (and then you start getting into problems with trying to retain the CGT reduction).
But hey, despite there being one ATO, you still get different opinions between accountants so it would be wise to check with yours.
MickIt is of use when running a short to medium term development project to allow the project to be self sufficient whilst waiting to be completed and settlements to occur. Of course the obvious problem is if they dont sell. All comes down to the numbers and what risk you (and the beank) are prepared to wear.
MickHi Michael,
The lease that the current tenant is on stays put under the current arrangements, your name is merely changed in the bond documents, and you notify them on however you decide to collect the rent (using a managing agent or yourself)
A couple of questions, if it is tenanted at above market rates and this tenant does not renew the lease, what return are you looking at? If the investor is indeed cashing in on the fact that there is an above market rent, I presume you are paying a premium for this property. In the surrounding area, what are the other rental prices, sale prices and overall yields? Does it still stack up?
Mick
