Forum Replies Created
There is no cgt on PPOR
CGT is payable at your marginal rate of tax, a discount of 50% is given if you have owned the property for more than 12 months. It is calculated on the capital gain made eg Bought for $100k + $10k SD/Legals + $20k refurbishment = $130k. Sale $140k less comm $5k = $135k. Taxable Net profit = $5k
Technically, a 'gazumping' but if you can stop it, it's worth a try.
Cooling off period only applies to the purchaser (if they haven't signed a S 66W).
As you sent the signed contract back on Saturday, the likelihood is they have already sent it on to the purchaser's solicitor & it would be unethical for them to disregard the contract signed by both parties in favour of the later recieved offer. (Who said agents were ethical?)
Try contacting one of the companies which does bath restorations or alternatively Recollections in Sydney
Air rights, when associated with a 'strata lot', can be an exclusive right conveyed on that lot to utilise an area outside of the strata lot usually acknowledged by a special by-law giving 'exclusive use' alternatively, the roof may form part of the strata lot or be a completely separate strata lot. They could also form part of a stratum lot thus allowing further development and strata subdivision)
The developer, when registering the strata plan, may include the roof as part of a lot or create a separate lot for the area. Otherwise, if it is generally accessible, may be part of the common area. In this case, someone may need to apply for 'exclusive use' & possibly pay for the privelege.
If the lot has air rights, there may be conditions as to the extent eg how high above a datum point the right extends (this may have been determined by a development application limiting the height of the building and any structures).
Air rights do have a value attached to them mainly dependent upon the usage to which the space may be used – eg installation of telecommunications panels and associated equipment (shelter, cabling etc) or signage. Neither of these uses have much value unless there is a demand for such items eg lowset building, quiet street, no exposure, poorly located etc.
The brochure says that they will stick their hand in your pocket (1% of sale price), considering that it may lead to a quicker sale after all of the work is done, it might be worth a look if you are selling your ppor (one of the requirements, doesn't preclude it being held by your trust).
If they want an agent to get a tenant to replace them, they will need to sign an agency agreement with the current agent (if there is a managing agent). If they don't, then no-one is going to spend money on finding a new tenant.
Unfortunately there is no easy way out – the lease is 12 months and the parties are bound to a $20,280 contract. The obligation on your parents is to pay until they find someone to take over the lease, and then make up for any difference if they can't achieve the same rent as well as all advertising costs, lease preparation, agent's commission etc.
As for providing 2 months notice, I don't know where you get that from but it is certainly not in the Residential Tenancy Act.
Has your family signed an agency agreement with the agent so the agent will look for a replacement tenant? If there is no signed agency agreement the agent is quite happy to take your money until the expiry of the lease.
As for providing 2 months notice, I don't know where you get that from but it is certainly not in the residential tenancy act.
make sure that any provisional sums will be sufficient to cover the works eg an allowance of $500 will not get you 2 decent toilets, where possible nominate all of these fittings eg Kohler model XYZ toilet so the builder can price the items.
I'd agree with Terry, pay your excess (probably will be able to claim it as a cost anyway), and let the insurers chase the person(s) responsible – they can't/won't go the tenant unless your tenant's friend was living in the place.
Don, they are houses so you will need to review all of the house sales stats and extract the semis (see comment #1), put them in an excel spreadsheet and calculate your own metrics.
It all depends on several factors:
a) Do you own the units or have you taken on the management? If you are managing them on behalf of another ie acting as the booking agent, then you MUST be licenced to do so.
b) What size are the units? ie studio/1 bed/2 bed/sleep 10 etc? However a minimum charge would be based on how much time it would take to clean & change linen, supply consumables as well as laundering etc. Do you own the linen or does the owner?Not sure if the unit is 49 or 61 m2 but even as an older style unit it may be a little small as 2 bedrooms – studios are less than 50m2 and by modern standards 65-70m2 would be a one bedder, just be aware that the size is rather small (and reflected in the price). Return seems ok at over 5% however you should check whether the tenant is on a lease or just on holdover and may vacate at settlement. Do a thorough inspection (to check that the tenant keeps the place in order – including making sure that the stove works completely & is in a clean state).
Can you advise which state, what class of property (comm/ind/retail) and what is a 3 plex?
They are not tracked individually so you will need to get a suburb-wide printout over a period of 5-7 years (or longer) and search out the resales.
A good looking outcome.
Unfortunately there is no easy way – they are listed under houses (as they are houses). You may need to use google maps or whatever to view the exterior or do a lot of driving around.
This process is called a sale by tender or EOI. I recently saw one with best offer over $700k. It went to negotiation with all of the parties who submitted an offer. Selling for $750k within a week.
The interest on equity taken from your IP cannot be used as a tax deduction as it is not being borrowed for income generating purposes. It may be more beneficial for you to move into the IP and redraw the equity for the new property using it as an IP.
