dd81 wrote:

Can I distribute any rental income to my sons? (they are only 1.5 and 3 yrs old though).

Yes, however they are charged tax at the top marginal rate unless it is ‘excepted trust income’ (eg from a testamentary trust).

Does 285m2 qualify under your council’s LEP for separate titling? You will find that unless there is a specific exemption or mention, the minimum block size may be 400m2 and you will be well short which is why the developer went the way that they did.

If it includes building a wall then you may require consent.

Your assumption of equity required of $47k is far shy of the normal requirement of 30% for commercial property. 

You can borrow to purchase but cannot borrow to renovate (make sure that you have sufficient funds to complete the works without tying up all of your capital).

Will you being converting to residential (restrictions on what you can do in super) or will your business be renting it from the SMSF. Any rent paid will go to the fund (less any tax payable).

$40k is much less than what is required to be effective for a SMSF, you won’t get a land tax exemption either.

After reading the rent review clause,  go to abs.gov.au and get the CPI table download. This is an Excel file.

Use the all groups Adelaide

June 2019 ÷ June 2016 × current rent.

113.7 / 107.5 = 1.0576744186 x rent

You will also need to do a back rent calculation for the period after the rent review to current (even if this is prior to your ownership, it is in arrears).

Your first port of call is the BCA – you need to determine the type of construction material that the building is required to be constructed.

I have previously built light-weight construction using Hebel panels, styrocon and metal sheet/purlins each solution was dictated by the location.

Stamp duty (at market value for the % that you are buying), legal fees (you, sister & mother all require advice), provision for capital gains tax (payable by your sister), discharge of mortgage.

https://www.stonnington.vic.gov.au/files/assets/public/adl/public-notices/proposed-special-rate-for-chapel-street-shopping-precinct.pdf

• This reply was modified 5 years, 4 months ago by  Scott No Mates.

@sako – what do you mean by ‘becoming a builder’?

The building industry is very wide – there are jobs at all levels from unskilled labourers, semi-skilled trades (concretors, gyprockers, landscapers etc), general tradies (brickies, painters, chippies, metalworkers, stonemasons, plasterers, floor layers, plumbers, sparkies etc), professional builders (project managers, site managers, site engineers, estimators, contracts administrators, quantity surveyors) and more. Each bod calls themselves ‘a builder’.

To get a builders licence as a minimum you’ll need to complete a trade (4 yr apprenticeship) then get your Cert IV in building and after suitable experience (diarised etc), then you can apply for a licence.

Make enquiries through HIA or Master Builders Vic.