We are in a strong position financially so I don't really see how we could lose, but it a scary prospect all the same. I am only 25 years old so all this is fairly daunting for me.

Just because you can afford to pay for it DOES NOT make it a good idea. Personally I dont think the return you have advised is very healthy, you will achieve higher by putting it in term deposit. The other side of the coin is will property prices rise thus giving you your return? Ah crystal balls mate, and the only person responsible for the final result is YOU. You can take on all the advice offered, both paid and unpaid, but at the end of the day, it is your butt on the line. YOU have to be confidant in the chosen investment. Do your own due diligence, know your market as best you can. Ths forum is a great place to ask questions, there is so much knowledge here, from all sorts of people who have constructed all types of property deals. Sorry…. al little side tracked there……it just always rings alarm bells when a novice investor makes a purchase based on "someone elses" opinion. I have seen a few suffer badly.

I agree with Richard, I find it very unusual to hear a FA has been so specific with the davice to purchase a property. I am not familiar with the Ipswich market so will not make a comment on if it will increase and to what amount. Throw up a post specifically on ipswich and see the response.

All the best

Mick

I was informed during our build to sell that I was only able to claim deductions against the sale of the building (not including GST which can be claimed along the way).  We offset all interest, rates, insurances etc against sales price to determine our tax payable.
mick

Elka,
You are quiet right, although I took it if they are building that they have already purchased the land. If so, then there is only a 6 month allowance for 2 places to be considered PPOR. If the building isnt completed in that time, then if the original PPOR has not been sold, a small proportion of CGT may be payable. Not to say it will, I just wanted to point out that it may, especially if there was a delay in building time, or sellling time.

Cheers
Mick

Hi Nathen,

The more professional version of Street sales is
http://www.pdslive.com.au/pdsv3/app
That site has all owner details, searchable in fact. It is amazing what you can find. It is on par with RPData, Streetsales is more for those who only want to do basic searches. PDS offer a weeks free trial for PI investors/developers agents etc. For that you just need an ABN. I have been using it for over 12 months now and highly recommend it based on cost comparitives. Also note that the QLD State Gov is due to remove all names for privacy and I am of the understanding that NSW is to follow, not sure of the time frames. QLD was supposed to have gone in Jume but has been pushed back.

Hope that helps
Mick

yet another first time poster defending something. I am surprised there wasnt a sales pitch in here as well.

Compare the purchase price to the surrounding similar properties. Display homes are notorious for adding the rental component to the purchase price. Simple example, normal rental would be $400 per week, you are offered rent of $500 per week, wahoo says you, but in the background, $5K has been added to the purchase price. This instantly offsets the vendors increased rent and over hte life of the loan will cost you more than you will get in the extra rent.

That said if it is in a high grwoth area, it may be worth the premium. Withour further details (not needed here) it is hard to make the call. So look at your numbers and research, research, research, dont get stars in your eyes over the 8% return, find out if that is realistic and sustainable.

All the best,mick

IMHO,
if you are looking for a solution, that is an easy no thought required then go for your off the plan. If you are looking to be more active and expect more return in the long run then I would go the potential subdividable property. Of course it all comes down to :
1. Why you want to do what you ant to do, and
2. Running ALL the numbers in both cases to see which best suits point 1.

All the best
mick

Hi M,

Really, unless they are open for negotiation, there really isnt anything you can do. As there is no intrinsic "amount" finding a problem doesnt necessarily reduce the cost UNLESS the vendor is open to negotiation. You cant MAKE them consider your findings. You either agree with them or walk away. If it stays on the market, resubmit an offer based upon your new knowledge.  It is harsh but there are always other properties.

Just checking…….have you already entered a contract? If so, unless you had a clause "subject to satisfactory building report" or similar, then you dont really have a recourse, if you pull out you forfiet your deposit. If you did have such a clause, then you are entitled to either renegotiate (which they dont want to) or pull out of the deal with no penalty to you, and refund in full of your deposit.

All the best
Mick