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HI there
in relation to the termites – it is quite usual to have some form of termite activity on a property in QLD – treatment does vary in price but you can expect to pay a couple of hundred dollars – your report should have given you an estimate for a treatment
as for the unapproved items – depending upon what has been disclosed in the contract – you can either state that the building report is unsatisfactory and use it as a bargaining tool to have the price dropped (to reflect the costs of having the toilet and shower approved – ring Council to get a ball park figure – or a plumber who can give you an idea of the likely costs to get the approval) or you could try and get the Vendor to get the approval for the shower and toilet prior to settlement – or else you state you will withdraw from the contract.
I note that I personally prefer to have the first option as I have some control over the contractors used – and it avoids problems with delays with the Vendor or CouncilHI there Brookelea
you may wish to review the above thread which recently discussed this issue concerning the release of a depositBy the way did you enter into a cost agreement with your previous solicitor? – it may be possible to dispute the amount of $1000 being claimed – which incidentally seems a lot to be charging in the circumstances
thanksHI there
If the dwelling was acquired by the deceased after 20 September 1985 was the principal residence of the deceased just prior to death, and was not being used for income producing purposes just prior to death, the capital gain or loss will be ignored, provided that disposal occurs:
- Within two years of the deceased’s death; or
- The dwelling was, from the time of the deceased’s death until you disposed of it, your principal residence or that of the deceased’s spouse or an individual having a right of occupancy under the will.
Note: If the trustee or beneficiary acquired the ownership interest on or before 7.30pm on 20 August 1996, the dwelling must have been the deceased’s principal residence throughout the deceased’s ownership period.
Partial Exemption
If the above conditions for a full CGT exemption are not satisfied then only a partial exemption (or no exemption) is available. For partial exemptions, the capital gain or loss is worked out by the number of days you are in residence compared to the total ownership days.I note that if your brother in law moves into the property – he won't have the same problems with capital gains tax that your husband will have.
Your Husband and brother in law could own the property as joint tenants (the survivor takes the property) or they hold as tenants in common (each taking a 50% share). If you come into the situation – you do complicate the estate finalisation – as from my understanding you are not entitled to benefit under the Will – just your Husband and brother in law can. There are often stamp duty exemptions where transfers occur pursuant to a will – by your getting involved with the financing aspect and being put on title- there could be a muddying of the waters and you may make any transfers liable to the payment of stamp duty.
Would it be possible for just your husband to apply for a line of credit? – as it would make things far simpler. Also it would be better to protect both parties interests (and their respective estates) if they held the property as tenants in common. I do not know how that will affect the finance aspect though.
You can certainly have anything worked out in an agreement – and I do recommend you do – set out your aims and who is wanting to achieve what and have an appropriate exit strategy – where one party can buy out the other at an agreed price process or failing agreement the property is sold, liabilities paid and funds disbursed.
thanksHi there Richard
is the lower percentage dependant upon postcode? or are there some other factors? as our dealings have mainly been with lenders with the 80% percentagethanksHi there
just wondering how the water penetrates – did you plaster the outside of the property? – as I note that we are planning to do the inside of the property once no longer tenantedthanksHi there
I think you all should see a solicitor – perhaps the one who is finalising the estateyou will need to discuss with everyone how the property is to be held – whether as a joint tenant or tenant in common – this will affect your financing optionsIt is not clear from your post if the property is post 1985 purchased so CGT will start to be an issue if the property is retainedAs for another party will – once again as wills can be changed – unless there is some form of agreement between the parties – there could be troubles laterCan I suggest when you speak to the solicitor – think through how everyone can get out of the deal without creating a great deal of hassle – as you will all need some exit strategy in this situationthanksHi there
I note we recently had some difficulties with Mortgage Insurance.Did you know that a lender will normally require that Mortgage Insurance be paid – and that you as borrower only need to pay the premium if the LVR is more than 80% – if the percentage is less than amount then the Lender will often pay the mortgage insurance.This was spelled out in our credit loan documents and we too queried if our loan would be denied by the Lender if the insurer said No – it did annoy us that a third party – beyond our control – could regulate whether we did or did not get our loan. Apparently it is not normally a problem – but it did worry us – so I can empathise with you – but most Lenders do require the protection and it is one of the conditions of your loan – and does have to be disclosed as a condition of providing credit to you.thanksHi there
we are still investigating the costs – but a painter friend recommended the process to usI am not sure if I have got the terminology right – but we are rendering in such a way that we are obscuring the cement joining lines and so it looks a bit like plastering but with a rougher finish – we did see examples of the proposed finish in Bunnings – the unit in the block below us has been rendered with the process and looks very effective.I'd imagine the costs will depend upon where you are – for example we noticed that building costs were a lot more in Canberra than in QLD – I would imagine it would also be dependant upon how much of the building needs to be done with the process – in our case – it is only a lounge dining area that we are getting doneSo it may be worth your getting some quotes from a solid fill plasterer fin your area or the work you need to get donethanksYour friend needs to review the above page to obtain details of a lawyer in Newcastle – possibly one accredited in commercial litigation.Whilst the son has the 'legal interest' in the property, the father would have an equitable interest (constructive trust) in the property – which if it is due to be sold – could be protected by a Caveat over the property which would only be released on settlement upon an agreed amount which represents the expenses paid and an appropriate percentage of the increase in the property. Your friend should have all of that amount particularised to give to the solicitor and should be ready go give instructions to lodge a Caveat to protect his interest. Your friend should also be aware that by lodging a Caveat – he could end up in the Supreme Court because you do have to substantiate lodging such documents on title.Is there a possibility your friend could negotiate with the son – perhaps borrow funds and buy out the son's interest? – it might be an option if the son doesn't want to end up in the Supreme Court?thanksHi there
the main thing in such areas is to have a good property manager –I note that we purchased a property in an area which used to have a bad reputation – but due to excellent property management, the area has turned aroundthanksHi there
have you approached the ACT planning authorities with your proposal – to see whether an application could be lodged? If there are other properties in the street allowing dual occupancy – perhaps it could be as simple as changing the characteristics of your particular lease in TuggeranongHi thereI think you already have drafted the beginning of your clause above – nothwithstanding the rights created in the lease between x and y, we reserve the right to progress the development/subdivision plans attached.You should check with a NSW solicitor as to any current legislation which will impact upon your clause – it is in your interest to do so as they are covered by professional indemnity insurance if there is any problems.If you would like any recommendations for NSW solicitors – please contact me – as I note that I did work as a solicitor in NSW and still have friends who are practising there.thanksHi there
I notice you haven't had a response to your query and thought I would obligeAs to the most valuable asset – I would have to say a good education is the most valuable asset you can have and pass onto your children – you never stop learning and continuing education should be one thing you pursue throughout your lifeI think having a good Accountant is important when things start to get complicatedI note that as a legal practitioner, I can pool ideas with peers which is very helpful and I also have studied financial planning which is also very usefulI would probably spend about $2k per year on advisors who assist me with aspects of investments undertaken.As for an Accountant in Melbourne – there have been other threads which recommend people – so perhaps just search others commentsthanksHi there
I noticed there was a good article in the latest property investor magazine by Margaret Lomas that addressed this sort of queryShe highlighted that she did an initial search on realestate.com based upon how much she wanted to spend, she would then sort the results and ignore any towns that were one industry towns.She then highlighted that she started to do a search of the local council website, any newspaper articles or general information that related to the town she was interested in.She didn't actually go and see the properties but engaged pest and building inspectors, also valuers to report on the particular properties she had pinpointed of interest and ensured her contracts were subject to a satisfactory valuation.The particular magazine also has price details for suburbs in each Australian state at the end of all the articles up to the end of December 2006worth a look perhapsHi there
if you are earning an income from the property you can claim your expenses including agents commissions, council rates, repairs and depreciation on any newer fixtures and fittings etcthe only time you might have a problem with capital gains if say you built another home on the land (in addition to the existing property) – which basically is changing the pre cgt asset to something extra which is post cgtHi there
have used both Wesfarmers and AAMI for landlords insurance – Wesfarmers was getting a bit pricey and AAMI looked like they had a good replacement policy for the property (AAMI has an online quoting system which is cheaper than over the phone)I have had to make claims from both insurers before – and both have been good to deal withHi again
if you have already been using your trust to purchase properties – it is likely that it has already been vetted by a solicitor and found to be adequate – as the bank would have had their legal department review your documentsome of the issues the banking and finance lawyers look at are the ability of the trust to borrow money or raise finance, to guarantee and indemnify the payment of money and to utilise trust assets as if the trustee was the owner – also the ability to enter into contracts in which the directors are directly interested – if there are any doubts the banker's lawyers will ask for an amending deed to be prepared to accommodate their concerns – which can often delay settlements where the bank will require these documents to be stamped (to avoid any arguments over resettlements) prior to any money being disbursedI don't know how often it comes up – but I have also started to see deeds that require compliance with the requirements of the Foreign Investments Review Board – which regulates how overseas nationals can invest in Australia.Anyway – it is worth checking with your solicitor every so often to ensure your deed continues to comply with current legislation – every time you hear in the Media about proposed changes to trusts or the taxation of trusts – it may be worth considering if your deed needs to be amended. This is particularly the case with superannuation deeds which seem to need to be amended quite regularly to keep up with changes to government policy.Hi again
thanks Wayne – I noticed that John Turnbull of Mason Sier and Turnbull is still practising at Mount WaverleyBrooklelea – he was a good chap too – also a property investor – and property developer – when I worked there many years agonot sure if that is close to you thoughHi again
I think the main thing is to get informed advice when you are proposing to make changes discussed aboveI have seen deeds which will allow the trustee to make a decision who is included in the class of general beneficiaries – which can be by way of resolution – also who can be excluded from benefitting under a trust – provided there are no changes to present entitlementsit is also possible to approach the office of state revenue for a ruling (similar to the taxation rulings) if an officer of that department is likely to exercise a discretion adverse to your situation – before any changes are made or any minutes are finalisedHi there
I think you need to let people know what you are trying to achieveit is possible to amalgamate titles back into one title – but given so much has been done to strata the property – I do wonder whyobviously if the property is on one title – the council fees should be lessTorrens title is a description of the title process started by a clever South Australian where you didn't have to have a chain of documents to establish your title to property – just the latest registered details evidenced your title to property
