Errrrr Isn’t this advertising.

Maybe the Moderators were sleeping at the weekend.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Oh yes one last thing for your $30000 were you getting a double block !!!!

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

John is bang in his response.

One of the priviledges of being classified as a property developer is i can hand of 11th of the difference between my purchase price and my sale price over as GST (assuming i am using the margin scheme).

I guess i have the massive benefit of being able to invest the imput credits along the way (big deal).

Doing the odd investment deal here and there and keeping my job as a postie or nurse has its benefits.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

KP

If you re-read my answer to your post you will note that the reference to Stamp Duty refer to the wrappee.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

The Club has been around in Brisbane for around 8/9 years having been established by Kevin (formally Swampe) & Kathy Young.

Suggest you might like to correspond with Derek (moderator) as i beleive he is involved in the organiation in WA.

If you need any further information on the Brisbane please feel free to email me I initially providing the lending facilities for the club when they started.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Terry

As always bang on. If they don’t get paid you as the legal owner of the property are liable.

I would suggest that you incorporate a clause in your Standard Installment Contract to divide the rates by say 12 and collect an even amount each month from your wrappee.

Bear in mind you can always do the adjustments up at the end of the year but at least the purchaser has something to budget on.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Roofarmer

Terry as usual is correct there has been a few changes to the way Installment Contracts are taxed.

Have a look at the following link and this might help. All in all its another win for wrappers in the way income is assessed.

http://law.ato.gov.au/atolaw/view.htm?dbwidetocone=05%3AATO%20Interpretative%20Decisions%3ABy%20Year%3A2004%3A1-99%3A%230027%23ATO%20ID%202004%2F27%20-%20Derivation%20of%20income%26c%20residential%20properties%20instalment%20sales%20contracts%20-%20carrying%20on%20a%20business%26s%3B

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

I agree with Scott.
We have only used 3 lenders with 151 completed deals.

One of the lenders has done 2 deals and we won’t be going back whilst the other one a major top four Bank has done over 130 fully disclosed wrap deals.

It is all about presentation and the balance of the deal. In our case the Bank concerned want the property development business that offered if they finance the wraps.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Another alternative is to use the mortgage broker you recommend in the link to your website which appears to have been omitted from your original question.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

John is right.

Every taxi driver and full time teacher all wants to be a property developer and thinks it is the easy way to making your next fortune.

As someone has been involved in the Brisbane property development market for the last 12 years i assure you that it is not easy and without its own problems.

Once you have found the property or site you need to find a way of tying the property up whether it be via an option agreement (if the Vendor understands this) or Purchase Contract.

You then need to engage all of your Professional advisors from Architects to Town Planners, Engineers to Surveyors to ensure that what you intend to do with the site you can do.

Next comes the fight with Council and hours of meeting and telephone calls.

Advertising and notification and many months of ensuring things go with you and that the person you spoke to in Council has not left or changed Departments and taken you file with them.

Finally after many many months you get you Development Approval and if like us you build on the site rather than merely on sell it to someone else and take your profit you are probably another 1 year away from earning a quid.

Oh in between did i mention eveything from Union involvement to Stop Work orders (because some local councillor thought his wifes niece once saw a koala walk down the street next to your development) to labour shortage monthly material price rises, pre-sales and interest rate increases. Oh then finance fall overs (thankfully these are rare) to a net profit.

Oh yes almost forgot BAS lodgements and paying over that GST you had collected along the way in between the odd ATO GST audit and finally enough to invest in another 20 wraps.

Oh to be a property developer.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found