Forum Replies Created
Thanks Terry – seems like I can request for a refund of land tax paid once construction is completed and certificate of occupancy is issued. Requirement is to be in the new property for at least 6 months to be eligible for the refund.
Sharing the link in case this helps others: https://www.sro.vic.gov.au/videos/sro-hot-topic-do-you-pay-land-tax-while-building-home-vacant-land
Hello folks …. anyone able to share their expertise on this matter?
I checked out https://www.sro.vic.gov.au/pprexempt#11 which does indicate both the new PPR and old PPR will be exempt from land tax provided new land isn’t generating income and we fit in that category as we knocked down the place as soon as the settlement took place.Look forward to your views.
Thanks for your reply Terry. This is in VIC.
Hi Shehan,
I basically took my rough drawing / plans to several builders to get some rough pricing and inclusions they provided. We did that exercise about 12 months ago and glad that we are in the tail end with our new home should be ready in approx 8 weeks time.
Purely from experience (based in Melbourne), I found most builders quote was fairly similar based on the inclusion levels we wanted. Best to go with someone whom you are comfortable and can see their recent builds. In the end, we went with recommendation from a friend who had build 4 homes from our current builder and I can see why as they have been very honest and the directors of the company are extremely approachable.
Our site supervisor is also brilliant who has gone out of his way to ensure tradies do a good job with the home. I would have no hesitation recommending them and look forward to moving to our new place in approx 2 months time.
Regards,
NM7Anyone with some details / suggestion??
I’ve just done that – contacted approx 5-6 demolition companies and received a quote ranging from $11K to $20K for a 3 bedroom weatherboard house to be demolished. Asbestos removed with certificate provided and a reasonably large tree to be removed included.
Demolition company wasn’t worried in me salvaging things on my own & hence managed to sell various things like mature plants, doors, windows, built in robes, wall cupboards and even door handles for approx $3K which is a pretty good outcome.
Moral of the story – get at least a few quotes and only deal with licensed demolition companies.
What about Tica Landlord Insurance cover – http://www.tica.com.au/insurance.php
I’ve had them for the past couple of years for 2 of my IPs but never had a reason to make a claim so far.Anyone else has had experience with Tica that you would like to share / make me & others aware?
Terry – thanks for the info and I will touch base with my solicitor to assist with the licence to occupy as you have suggested.
I would have thought that Buyers advocate fees would be added to the cost base for the property.
Hi all,
While on this topic, what is the main difference using someone like BMT / Washington Brown / Depreciator vs TaxShield who charges a fraction of the cost from the other companies? I understand that there is a comprehensive check-list provided by TaxShield that you need to conduct the onsite inspection and provide the details but wouldn’t it be worthwhile doing so especially if one can easily visit your IP to conduct the self-assessment through TaxShield?
Cheers’
NM7Hi all,
FYI, I recently had changed locks for one of my IPs based on the request of a tenant wanting to move in. They had put in their application & requested the PM for external door locks to be changed. I was happy to do so as I was getting $5 more per week and for them to sign-on a 12 months lease.
Regards,
NM7
Thanks for your views Nigel … as replied to Richard, I'm certainly looking at some good opportunities within Brisbane but wasn't sure what my best options are, particularly being based in Melbourne. I'm concern of choosing an area that might be flood-prone or just not attractive to potential tenants. What sort of budget range would be involved with the inner city market of 5-6km range you mentioned? Are these house & land packages or existing homes?
Cheers'
NM
Hi Richard,
Thank you kindly for your reply and I was introduce to a new house & land package in Upper Kedron within the Jarrah estate for investment. Hence, I just wanted to get views of the experts here in regards to which location within Brisbane that would potentially fetch good growth & good yield for approx $450K to $500K. Have you got any suggestions?
Regards,
NM
While on this topic, would you also combine Landlord Insurance with RACV Emergency Home Assist (assuming you have an IP within VIC)? Also in regards to SMSF101's recommendation site of quotelinedirect.co.uk – does it cover Australian properties? Has anyone managed to get a reasonable quote from the site?
Regards,
NM7
Hi Steve,
I just had a mate of mine asking me about where he can get depreciation schedule for his newly acquired IP & I pointed him to consider http://www.taxshield.com.au/ which I’ve used in the past. Not sure if everyone here would agree but I found it easy to use their check list for all items that can be depreciated and for $250+gst … I reckon it is value for money.
Regards,
NM7Kristin – you mentioned that tenant’s responsibilities includes replacing light globes …. does this cover extra ceiling heights where a tenant needs a ladder to replace the globe (may invoke OHS issues)? Anyway, does the RACV Emergency Home Assist cover replacing light globes on high ceilings?
NM7
A very interesting post I must say ….
I too recently had a situation whereby one of my IP had a faulty solar hot water system installed on the roof. The pressure release valve for the unit was broken causing a massive water leak over a period of 2-4 weeks (as this is not an easy fault to identify due to the fact that the unit is on the roof & water was gushing down a pipeline; hence no leak into the property)I had tried several times contacting the builder (as the IP was newly off the plan; approx 18 months old) who wouldn’t own up the issue but to cut the story short, I managed to get the installer of the hot water system to replace the valve & fix the leak issue. Next, my tenants faced a massive water bill (approx $1600) and we informed tenants to apply for water leak allowance that reduced the bill to $550.
As these tenants have been really good and managed to proof that their usage (over 2 years) has been extremely, I negotiated a 50-50 split of the bill with them. They were happy & I was lucky to have such tenants. However, if I had bad tenants who may have stuck to the point that the water leak is not their problem; what could have happened? Would I have to fork out the large bill?
Just wanted to get your expert advise in case I or anyone else falls into a similar situation down the future?
NM7
Hi Folks,
While we are on the topic of good accountants – just a quick question as to their charging mechanism. Do you folks get charged higher for having more IPs or does your accountant provide a flat fee structure provided you have set item of works required? If you don’t mind – what sort of rates are you folks paying and how often do you catch-up with your accountant?
Lastly, is it a major pain to change over to a new accountant? What steps are required to ensure no loss of information occurs in the event of changing to a new accountant?
Regards,
NM7Hi Folks,
Thanks for all the information provided and I will surely check out the ATO website to get more information. Do you know if you can update your estimate a couple of times over the financial year in case circumstances changes; ie. salary rise, partner going on maternal leave, getting lump sum bonuses, etc?
What happens if one overestimates expenses & underestimates the income to the point that they end up with a tax bill? Do you get penalised for the incorrect estimates?
Sincere appreciate to all in providing your feedback / point of view.
Regards,
NM7Thanks for the updates Terry – yup, I ran it passed my accountant who had similar views as well.
