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As a (licensed) agent you should be making 50% of the agent's commission ie if they are getting say 5%+ gst on the sale, you should be getting your 2.5% of the sale. In saying that, that applies to a co-agency/conjunctional agreement, although I have seen less. Speak to the body representing agents in your state REI?
If you only have $80k aspirations, don't even bother. (They don't drive flash cars for nothing). It may take you a little time to crack that barrier but you will get there quite quickly depending upon the pricepoint of the properties that you deal with – it will either be quantity (of cheaper places with higher % commission) or less higher priced properties (with low commission).
The thing to be wary of initially is working for commisson only – you don't get paid anything until after settlement ie 42 days + after sale contract is signed. Alternative is not much better, getting $X per week + commission. This method you run a ledger with costs being your wages, phone, car, advertising etc which is then offset against your commissions earned. Although you will be earning an income, it will need to be paid back to the Agency when you make sales.
You will also need to know what your share of the commission is ie do you get 50% for a sale or is it 30% for the listing and 20% for the sale and 50% to the agency? That is, what cut do you get for listing a property and what do you get for selling it? This creates competition within an agency as some licensees like to list all properties hence cutting you out of a % or between the listing agent and the selling agent.
On the first part, well they have done it once so there is nothing stopping them from doing it again.
No easy way to get around the copyright or the right to use 'your' drawings. A S96 will allow them to modify the drawings but essentially keep the proposal – this may mean altering the facade & internal layout but not to the extent that it may be construed to be a new proposal.
There's always the option of selling the approved plans back to the vendors if you can't proceed.
Technically, the DA belongs to the land, if you don't exercise your option then the DA sits with the owner of the land. If you have achieved a DA, and are unable to negotiate an extension to the option or flip it prior to it lapsing, then you are unable to pick it up and move it to another site regardless of howmuch you have spent achieving it. From the other side, why would the vendor grant you an extension if you have taken all of the risk and the DA will sit with his property? You have added value to the property by achieving the DA so it is in your interest to flip it ASAP or the vendor has a choice to develop it themselves.
As for the plans, now that is another story. You have paid for the plans and the designer owns the copyright on those plans. They may only be used for that property however, without you selling your rights to utilise the plans, someone who builds without using the same designer to complete the works (or buys the right to use them) will impinge on the designer's copyright.
Buy in other states – although this may not be feasible if you already have all your properties in Qld
Firstly, you are a separate entity from your FT, so you cannot claim it as you ppor.
Secondly, the trust will be taxed on the CGT at its marginal rate.K, as the sites are not returning anything at the moment, and a single transportable is only $60k, it would be best to consider the staged development asap. Thus you are starting to get a return on the first of the block, then follow on with your strategy. As Richard points out, this is residential and you can't transfer it from your ownership to the smsf.
Bluegrass, will it? Most reno is non-structural/aesthetic hence has a quicker depreciation timeframe. Could always be money for jam.
You will find that most investors will rely on a 'professional' for their conveyancing. It is generally not worth their time to do all of the legwork (esp when it forms part of the cost base). It may pay to do a short course at evening college (if one is available) to make you aware of all of the responsibilities, the requisitiions that you are required to make and what to do if you get into trouble.
It depends upon how much you want to pay for the property. What the property is worth, what other similar properties are worth? Is it better or worse than these properties.
To start in the industry you will need to get a certificate III from Tafe or OTEN. Best place to start is often in residential working for a local real estate agent as a receptionist. Duties will include answering phones and directing queries to sales/leasing staff, preparing the weekly available properties lists and some other duties like taking applications, running opens, verifying references etc.
To be a licensed agent, you will need a Cert IV
Keep your eye open in the local papers.
Two little areas to consider:
How will you split the water bill (or other bills), esp when you have tenants coming & going/vacancies?
Will $50 per month cover the cleaner's costs? You will need to consider how often you will have the cleaner attend, the duties of the cleaner (bathrooms, common areas, bedrooms etc).
Any consideration for lawn mowing?
You are buying a property with a higher and better use than the current improvements, you will not be buying a 'bargain' but you will be buying a site with development potential. It is to be expected that other properties adjacent to yours may be developed before you do any works to the site. You could make enquiries with council with regards to the plans if they have been submitted/approved, that way you can see what is proposed.
Once you are living together you would most likely no longer qualify for the FHBG, so you may have to make a move sooner rather than later. Also the FHBG starts to taper down from Sept 09 so there is more pressure to make a purchase asap to take up any benefit.
Sounds like a good buy D even though the area is a little rough around the edges, esp around 'blood alley' but areas do change over time.
Plenty of other good spots even slightly further afield esp around Kingswood/Penrith. Still on the rail line & access to major shopping centres.
If it was not income generating, then there is no point submitting an amended tax return for those years. What you can do now is offset all of the holding costs against the sale price ie selling price less (purchase, stamp duty, rates, land tax, insurance, grass cutting etc). This may reduce the amount that you are to pay for capital gains tax or give you a capital loss (which can be offset against any other capital gain).
Ben, sorry to rain on your parade but… if a room is not a habitable room as defined in the Building Code of Australia, then it cannot be used as a living space. The main requirements for habitable rooms are: ceiling height of 2400mm, adequate lighting (10% of floor area to be glazed/borrowed light), adequate ventilation (5% of floor area to be through and openable window).
Rooms which aren't habitable include kitchens, hallways, laundries, bathrooms, storerooms etc.
Reds, as Terry states he is not a tax advisor, so unless your mortgage broker is, I wouldn't be taking what he says as gospel unless he backs it in writing (at least if he does back it you can chase him when the ATO hits you for avoidance etc).
This is a question which would relate to your tax situation:
If you have substantial savings available to enable the outright purchase of a property then you should consider your risk profile – ie do you put all of your eggs in one basket or do you purchase 3 or more properties with that equity hence spreading your risk?
How much do you borrow (depends upon how much risk you want to bear)? Do you want positive cashflow, cashflow neutral or negative cashflow ie do you want to utilise the interest, outgoings & depreciation to be offset against your income hence reduce your taxable income?
How do you fund several investment properties? Do you use all of your current savings as the deposits for the properties or do you keep some aside?
What structure do you use eg trusts/direct ownership/inside your super fund?
It may well pay to seek well qualified advice to maximise your benefits
check the ATO website but it would include having the services connected in your name, being registered to vote at that address etc
Do an online title search – it will cost you a few $ but if you are interested in the sites a worthwhile expense. Your solicitor does one when you purchase as well as just prior to settlement.
