Forum Replies Created
If you declare the income, then you may be able to claim your expenses but you may also be open to cgt.
Considering the lack of supply and very soft yields (reflecting the level of risk) there are some good investments to be had provided you have suitably structured finance. Balance sheets have been corrected (although there are still another 2 years of corrections to wash through the val system) thus returning towards the long-term averages for commercial/retail yields.
Seek out an independent financial planner as direct property may only be part of a balanced solution.
SNM
Logic, as well as the stats, would dictate that there is some price relativity between the cost of a unit/town house/villa and house prices in an area. About time someone was using self promotion oops, an official statement, to make people realise this .
There is no set amount that you can raise the rent either as a % or fixed amount. How much will the tenant bear before you lose them and then are up for a replacement (ie advert, agent fees/comms/lease prep as well as lost rent)?
By law you must give 60 days written notice of a rent increase, this will limit you to 6 per year. Tenant can always take you to the tribunal in what may be seen as an unfair/exhorbitant rent increase (you are more likely to lose).
They build all over the state and have Sydney offices.
Unless it there is a transfer because of a breakup of a relationship you will probably be hit by SD & CGT (only the selling partner on their portion). If you have both lived in the property from the start or this has been the only ppor of your partner during that period, he could qualify for an exemption from cgt (6 year rule). There are many more qualified than me to answer this one.
Does the developer still have other stages of the land release to develop? Has everyone else built their houses? Are there any penalties stipulated in the contract (ie repossession, developer will enter into a contract to build on the site at their cost etc).
There are too many variables without knowing the full particulars.
Prices on the LNS are very high at present and may cool slightly once the FHBG disappears (but no guarantees). Likewise rental yields are still very strong (around 4.5% gross) which is generally a sign of an overheated market (this generally travels around the 3-3.5% mark). The correction could be either way with either property prices increasing (but unlikely due to affordability factors), rents dropping (can't see any signs of major new supply hitting the market, so unlikely) or interest rates increasing (causing ownership affordability issues/greater supply of property for resale/mortgagee sales etc – possible).
It is an each-way bet, is this a bubble or is this sustainable?
As for the pricerange – realistic depending upon the area, however you won't find much in the way more than an entry level 2 bedder (older style unit) or good quality one bedder (supply is pretty thin on the ground esp for 1 beds). Factor in up to a 2% increase in interest rates (I generally work on affordability at 8%)
I'd agree, if using an architect for design & contract management it would be best to get a local. Otherwise, unless you had a really good survey, 5,000,000 photos etc a remote architect would not be able to take into consideration all the necessary aspects of the design.
Alternatively, you may be better off approaching one of the local builders who can do dual occupancy (and are experienced in DO, eg Rawson Homes in Dubbo). You won't be stuffing around with architects etc it will all be up to the builder.
Terryw wrote:I had a mate who had one or 2 ATMs in his shop, think he was getting around $180pw for them. So it can add a bit to the income received – but you will need somewhere to put them, good location etc.Reasonably cheap when compared to some of the deals I've seen done on these in shopping centres etc.
Gatsby, how does the deal work? ie who has to acquire the lease location? who pays for the fitout (eg signage or other decorative treatment)? who pays for the make good? who pays the rent on the location?
A mixed use zoning will allow you to rent to a wider range of tenants eg business user. Each case is subjective and would depend upon the area that the property is located, the prospects for the area etc.
Now you've got me, are you looking to employ an agent ie pay them wages or to engage an agent to sell your property (in the role of an agent)? If it is the latter, then my comments stand – this is the detail that you may want to go into with a prospective agent.
If it is NSW then as sitting tenants on an expired lease you can get vacant possession. For your own protection, I would suggest getting a new lease in place with the rent increases noted. You will need to give 60 days notice for each rent increase regardless of whether or not it is in the lease.
Make the purchase conditional upon the selling (or managing agent) getting the tenant to sign a 12 month lease with 2 increases, the first 60 days after commencement, the second 6 months later. If the tenants aren't happy about it, you can always get VP (only needs 21 days notice prior to settlement in the case of an expired lease).
Offering an exclusive is more lucrative to the agent ie they are more interested in earning their commission. If there is anything special, then you may offer the agent a little more but have them be the co-ordinating agent or doing the sale inconjunction with another agent.
It is usual for executed copies to pass in the mail ie you don't need to both sign the same copy of the contract although this may happen if you purchase at auction.
A 'new' bathroom would need a DA, a refurb would not. There is a cap as to the value of the work that can be performed before you need to have an OB licence – so watch that.
Having an OB licence you can do one place and your +1 can do another, at least this gives you a 2.5 year gap not 5 years.
Don't pay commissions up front – removes the incentive to perform ie fee for service.
What are you looking for the agent to do? Property Manager or buyers agent?
Stupid questions mccoz, what is a rectified tile? I have heard of glazed/unglazed, glass, vitrified etc but not this term.
welcome Yasnat
1 – No
2 – See 1
3 – you willneed to purchase all of the units, consolidate the lots into one, then (after DA/CC/Construction) apply for a new strata subdivision showing the new lots as created & register a new strata plan.That is why it is not done.
