Forum Replies Created
Penguin has a small book – can't remember what it was called, otherwise try the local TAFE library
You probably don't have much choice other than deducting purchase costs + development costs + sales costs + claimed depreciation from the gross realisation.
Even if you find a bank to fund your investments, you will need to consider the currency risk of UK Pound vs AUD esp if you will be earning AUD and the dollar weakens once the effects of all the govt debt is realised.
jenny111 wrote:Hello.I would very much like to know more about investing in hotel apartments. I'd like to know:
– The pros and cons of investing in hotel apartments.
– I am GST registered, do I have to pay GST when purchasing a hotel apartment?
– Is it easy to resell?
– Why are they tend to be cheaper than the nearby apartment of equivalent size and age?
– Whether the banks would like lending to these properties and their lending criteria – minimum LVR without LMI. Are these deals still considered to be commercial lending or normal property investment lending?Could someone please direct me to the right source. Thanks.
JennyJenny – they are hard to sell and to finance (treated as commercial property by many lenders), yield has to be higher to attract buyers however you are generally required to sign a management agreement with the managers of the building eg Medina apartments etc.
The issues arise in undertstanding of any management agreement that you have in place – requirements for furniture replacement/presentation, supply of linen/glassware/cutlery etc, refurbishment requirements etc.
Not 100% certain with the GST however they can be treated as residential property hence input taxed so registration is of no benefit.
They are cheaper ie you have a higher yield however income may be sporadic eg tourist area affected by winter/school holidays/seasonal factors/events driven etc.
SNM
Not only that it is a scam
Yes, no and of course maybe. Bottom end of the market ie FHBG is coming to an end and may cause demand, which has been artificially brought forward thorugh countless govt incentives, will drop. 2nd/later homebuyers (upgrading) will bubble along. Top end properties, although there is a current lack of OS companies sending execs, credit crunch etc this segment will represent good buying for quite a while, you may have to take a big hit on rental yield for 2-3 years though. Will the void created by diminution of FHBG be filled by investors? Not likely if rental yields are starting to drop/credit remains tight etc.
Tile laying rate depends largely upon the size of the tile and the way that they are to be laid. You'd be hard pushed to lay more than a couple of metres of tessellated tiles in a day as they are all very small individual pieces with added complexity of laying to a specific pattern, likewise laying tiles in a pool with curves takes a lot more care and requires countless cut tiles.
Tile quality will not matter it will rely greatly on the type of bed that you are laying them on ie fully bedded will be more resistant to cracks compared to a dab of glue in the centre of the tile which can leave air gaps around the edges (which will then snap when you drive over them).
Porcellain tiles or vitrified tiles have a consistent colour throughout and will generally wear better than say a glazed tile in high traffic areas (either foot or other). Glazed tiles can still be used on walls or on floors where wear is not a major factor (as you won't wear out the glaze).
Will they be passing a bylaw (properly documented) granting exclusive use or will they be getting exclusive use & leasing? Will it be registered on title? What is the term of the lease? Some states will require a subdivision if it exceeds 10 years etc.
One of my collegues was charged with purchasing several houses in the area last year for one of their client organisation. There are definitely good an bad areas in Moree. Few words with the local constabulary wouldn't go astray to confirm the better areas.
I trialled POSH & previously ran Property Manager Pro (also from Manacom). Posh has issues running with more than one owner. I preferred PMP. Alternatively, download a trial version of Rentmaster – you can get the basic package quite cheaply. Handles most common situations. I use it for a mix of property types without an issue.
Two other thoughts – either you can employ a competent person with a builders licence to be your nominated supervisor for your building company or you could just get a builder to do the work (which may make financing easier as it won't be owner-builder).
RUK, it comes down to a couple of factors, what the instructions to the valuer are, the current zoining, any proposed zoning (if the LEP is still in a draft form) and as pointed out above whether the valuer should be valuing using a development model. If using a development model, they should be going further afield ie not in your suburb/town to find comparables (similar proposals/locations etc).
How about putting it on the ground and filling it?
Speak to a valuer
I use Austbrokers normally but have utilised Gowgates & Oamps. All have access to every insurer as well as some of the wholesale insurers.
Orica, the agent is obliged to advise the client of any bid unless they have been given specific direction with regards to bids below $X. Put the offer in writing, put an expiry date/time and any conditions you are making the offer conditional upon. This will show you are more than on a fishing trip.
What you are describing is the 'access handle' ie the driveway & associated drainage required for the rear block. You will need to have this in place before council will consent to any subdivision (it will be part of the requirements for the DA to subdivide the block). You may also be required to contribute towards a services levy or development contribution (S94 in NSW) which goes towards council buying land/building communal facilities eg libraries/parking/senior citz/children health centres etc.
The banks work with their panel of valuers, what you bought for 18 months ago is possibly more than what is worth today. The bank will not take into account what you believe it may be worth but will rely on the valuer who has access to all recent sales in the area.
1 – Yes, get the solcitor to have a look at it
2 – Yes the cooling off period does not apply until 3 business days after the auction – in which time the agent will still be trying to secure a deal with any of the bidders at the auction or people who inspected & took a contract. So if you wait until the cooling off period comes into force again, you may miss out.
3 – If there is no cooling off, subject to building inspection willl hold no water. Afterwards, a correctly subject to (as advised by your solicitor) will be valid.
3 – There should be some form of home owners warranty 6 or 7 years (depending upon the state). If it is multi-storey, then an exemption from HOW may apply.
4 – It is unusual for the minutes of the BC to be included in the contract however the solicitor should be able to review these at the Strata managers office.
