Forum Replies Created
- duckster wrote:Capital gains tax if capital gain achieved for the original owner of their sold share.
State Government land transfer duty. (check SRO in your state or google stamp duty calculator
Legal costs for use of solicitor for transfer of ownership.Hard to lower costs unless property was set up in a trust owned by a company structure when purchased originally.
Costs about $5000 to set up trust and shelf company -you would need to talk to an accountant about it before joint ownership entered into.thanks duckster
i will check for sro in victorialooks like thats fair bit of cost involved in doing that unless u setup a company which is complex process ..
is there any here who can advise on how to setup the trust or can do this …
for example in case of transfer from a to b
who has to bear these costs
both or person b to whom its being transferred to ..
thanks
sguys any one on these
any tips , precautionary measures , tales
pretty sure there would be many things to look at
tenent stories
sri
illuminati wrote:what you are writing down seems very sporadically written, i am in a bit of a rush, but ill check it again and go over it when i get home from work. but did you take into account how much the rent brings in?basically think of tax benefits as extras. get the rental income-the loan repayments and property costs (rates etc) to lower the loan repayments you can increase the deposit to greater tehn 10%.
tax benefits are like a secondary benefit, depreciation income losses etc can be used to lower how much personal income tax you pay.
ill check your numbers when i get home.
hi iliminati and others
thanks for your replies
even I am pretty confident – IP is far better than banks
just trying to get my numbers right
as the example I have used has freaked me a bit
illuminati
waiting for your advice
thanks
sri
guys
any one on this
penti99
Matt007 wrote:Thanks Intrigue – Sri can you clarify whether you are talking about buying 'off the plan' or actual land banking as they're two separate things requiring two separate strategies.DA=Development Application
MCU=Material Change of Use
They're only relevant if you're looking at land/sites with development potential.Thanks,
Matt.thanks intrigue and matt
yes I am referring to investing off plan
sorry If have used wrong term for it …
its confusing
one example is
lets say melton
if I buy a land there now
for some of them titles arent untill middle of next or may be later
then
i would onsell to some one before titles are released
what would be process
my understanding is
both parties settle on same day
i would have pay stamp duty and cg tax on profit made
but there would be more in this process
considering all this — doesnt look worth the hassle for the profit made ( unless a good one )
intrugue — so i should have an option to buy land as an 'option' rather than purchase
can you explain on 'nominee' part
thanks
sriMatt007 wrote:What sort of document are you using to 'control' the land with your 10%? Option? Some other form of agreement? IT all comes down to how you did it in the first place. Without knowing the details its hard to give any kind of suggestions or estimates on what's possible or not possible.As JacM suggests, if you find a piece of land elligible for rezoning, control it via an option or similar type of contractual document, either do the DA/MCU or onsell in a few years (if you get that long from the vendor) to someone else who wants to settle for a higher price, then yes you will make some profit, being the difference for what you offered to pay under the agreement, and what you can onsell it for, although you're liable for stamp duty on the option fee (in Qld anyway not sure about other states).
You could in theory settle simultaneously, both contracts settling on the same day. Comes down to the conveyancing and lawyers instructions.
It all depends on a) how you've controlled the land, and b) how well you've chosen the land. Doing it with any old block with no potential at all is not going to get you far.
hi matt
thanks
what are 'da'/mcu documents
can you explain further
what do I need to ask the REA agent to see if there is a possibility of on-sell
thanks again
srihi jacM
thanks for your reply … thats helpful .. thanks for the insight but I think i might have confused you
I have heard people doing it …
here is how it goes
I sign for a land with 10% deposit …
it has no title
and title is a bit far away – lets say 2 years …
I am not going to borrow 90% from bank
lets say the land value has gone up by 30 K and I have decied to sell after one year
I havent settled the land on my name at this stage
what would be costs involved
would I settle and the next person settle on the same day …
can any make any profit out of this ….
enlighten me please …
sri
hi catalyst
u are right .. but I think I might have confused u a bit there
what I meant was – 2 ip's ( paying for themselves )
and completely paying off my ppor
richard
thanks for your advise…
when u say loan structuring – do you mean refinancing
I know that I dont have much to play with …
after some serious look
i have shortlisted the following
suggestions please
if I cant get – zone1 ( melbourne ) 1 bed apartments ( not student accomdation as banks cant lend me )
buying land and onsell
looking at regional properties ( returning good rental yeild )
pros and cons on above ..
any others can you suggest
one quesiton with negative gearing : how much % of negative gearing can you claim
what can be claimed on inv property and what cant be ….
waiting for your reply
penti
hi richard
thanks for your reply…
i have been thru some posts .. its not been postive about cbd apartments ….
within my budget of 200 – 250 k max …
what else I can look for as a safe bet ….
i have been looking at suburbs like melton ….but cannot decide either go for suburban property or for a cbd one …as I am not much concerned about capital gains but want a hassle free property with decent returns …
where can I find a list of areas where I can invest modest 200 k with decent return and capital gains …
hi
i am a newbie and completely rookie to investing
i want to start building my portfolio by looking at 1 bed or 2 bed apartments in melbourne cbd
but very much confused with lots of questions … need help
why people dont consider cbd 1 bed or 2 bed properties … is it because they dont appreciate ….
what are the pros and cons of cbd 1 bed or 2 bed apts … especially serviced or hotel leased one’s
i have been to some seminars and gone thru net .. but that has confused me more
i have a bit a equity built on my ppor …
i want to use it and borrow the gap to buy 1 or 2 bed within a budget of 200 k max
the ppor is in both my of our names ( me and wife) but I am the only bread winner as we have a baby ….
so cant take a bigger risk … but keen to get into property market so it felt like cbd properties are within my reach …
seen some properties with 6.5 to 9.2% returns but cant understand what will be the outgoings
any possible litigations with these type of investments….
not expecting much capital appreciation but if the ip pays for f or with a bit of positive gearing – that will be great
thanks heaps
sri
