Hi Dave

PM me the address and I will have a look and see what I think can be done.

If you want to rent it and the house out separately your chances of getting an enforcement notice from council stopping you doing that, even if your building was approved is almost negligble.

If you want to get retrospective approval for a secondary dwelling, can be very doable.  There are a whole load of variables.

If you are happy for me to strip out the identifying information, I will respond through the forum so that others can see if they can get something out of it.

D

Hi

Many people make great short term gains subdividing, gives a good kick start to your equity.

regards

D

If it rents well and you are concerned with the tax bill, you could always sell it to an entity controlled by you.

You have had no CG so CGT is not an issue, but would have to pay stamp duty and legals on purchase in the new entity.

$400k property  would pay $16k in stampduty, and your new entity would borrow as much as possible and you would have an injection of cash and entity would have tax deductible loan.

However, as it has not had any CG, it may be better to sell it and buy a new one in an entity.

The worst scenario would be selling it and not replacing it with some sort of investment.  

You have time, research all possible scenarios and that will help you make the best decision

Hi Ashley

Looks Great.  

Will be a great resource for many people on here,

Cheers

Darryl

Hi

This is a great place to start.  One advantage about your situation is that it  might not make sense to buy immediately, which many do without taking the time to educate themselves and get setup.

While paying down your debt and getting ready to buy, I would suggest learn as much as you can about the following

-different types of property, areas that you want to purchase in and how to identify a good investment property.

-structuring both entity structuring and finance

-Self Managed Super Fund, although not large, your employer contributions would be and that combined with the 90k in the account may allow you to setup an SMSF and buy a property in it

-your strategy, what you want to acheive, what your risk profile is, how do you think you might acheive what you want to, do some goal setting etc

good luck and great spot you live by the way.  I had a weekender in Burleigh for years, problem was that with my kids getting older and doing more and more on weekends  I just wasn't using it, so had to flick it.

regards

Darryl

D

That should mean

2 Year lease with 2 year option, followed by another 2 year option. Its a 6 year lease if it is not optional.

Hi Ross

There are multiple possible structures, the state the property is in will affect choice of structure also but a Unit Trust is often a good vehicle in these situations.

If a Unit Trust does turn out to suit best, I would strongly recommend a Unit Purchase Agreement, this is an agreement signed by all the parties and outlines all of the what if's and how to's for when issues arise.  There are various other versions for other structures.

Again, depending on the state, it may prove beneficial for the units to be purchased by discretionary trusts.  Land tax can be a big influence on this decision, especially if property is in NSW.

regards 

D

BE VERY VERY Careful in Qld, especially Brisbane City Council Area.  I am currently dealing with a large number of Show Cause and Enforcement Notices for what BCC considers illegal uses relating to dual living arrangements

There was a Qld Court of Appeal Ruling which came through in 2012 (ADD Design v BCC).  The Court stated that the Definition of a House that the Planning and Environment Court has used for years, although convenient and somewhat practical, is wrong.

The Key part of the judgment is in relation to the term "discrete" individuals or groups or households.  The judgement found that a house can not be used by any of these discrete categories.  What does that mean, leasing a house and grannyflat out separately or leasing out a house as dual living areas, changes the definition of the use from House to multi-unit dwelling.  If you site is zoned low density residential, you will require 3000sqm of site to be able to do this.

I can not see the BCC letting this go, they are trawling real estate listings at present for references to dual living and duplex and going from there.  

Sorry to be a bearer of bad news.  If you have a dual living, duplex or granny flat arrangement in BCC at present, send an email to my planning address and I will see what I can find out for you.

regards

Darryl

Hi

Agreed

Find lawyer in your state as 1st port of call, make sure the asset protection and the entry, exit and what if it all goes bad stuff is going to be sorted.  IF they work with good accountant even better

regards

D