Forum Replies Created
Creative, but I don't think so. Unless the curtains are worth $50k
Although I am not familiar with SA Property Law, I am guessing that the process to convert from Moiety Title to Torrens may be similar to achieving qualified title for an Old Systems Property. You'd be best advised to speak with your solicitor prior to committing to the property to confirm if this is the case or whether you need to get both/all parties to agree to the conversion of the title.
Generally speaking the parking space(s) are assigned to a lot, form part of that lot and cannot be further subdivided to separate the parking from the rest of the unit entitlement. You would most likely need to undertake a strata subdivision to do this (it would definitely be possible if it were a stratum lot but not likely under strata as you would be required to undertake a completely new strata subdivision including preparation of a new strata plan, bylaws etc).
This is more-often the case where the parking is covered by a bylaw granting exclusive access, the right to the parking space cannot be separated from the unit entitlement.
In today's news Dept of Fair Trading in NSW has cracked down on unlicensed contractors/tradies in the Campbelltown area. SMH
Owner-builders are limited to one project every 6 years. You will be required to get home owners warranty insurance prior to selling etc.
Are the risks of a buyer discovering unlicensed work worthwhile?
I'm sure many have not heard of "moiety title" before – can you explain? Which state are you in?
In most areas you will be hard pushed to get more than 3 villas/townhouses on the block. Read the DCP, check the zoning & speak with the council's town planner. There are open space requirements, circulation space, paved areas and landscaped areas all to be considered in the equation.
Basically you will need to undergo the process of stratification ie engage a surveyor, submit an application for subdivision, prepare strata title subdivision (create new strata plan & lots, lot entitlements etc), undertake any work required to make the units comply with the Building Code of Australia (fire separation, fire doors, hose reels, exit/emergency lighting, fire hose reels, noise separation etc.
You will of course need to confirm with council that strata subdivision will be permissible on the block.
Digit, the property is a development site and is required to be valued by a valuer as such, taking into consideration the highest and best use of the property.
As a matter of interest, what did the banks valuer come back at? Was it similar to the value that your valuer came back with? Did your valuer assess the site in its current form, zoning and at its H&BU or based on the current DA? (if it is the latter, it may pay to get the valuer to revise the valuation to reflect the H&BU).
Johlin, if you intend to carry the refurbishment of houses on as a business, you or your +1 will need to become a licensed builder. As for the tax situation, provided that your are registered for GST, you should be able to recoup your GST inputs (ie suppliers/subbies) however you cannot generally pass these on to the purchaser in a resi property as the price is gst inclusive.
You'd be best advised to speak to both a QS & your accountant – QS for your depreciation schedule and your accountant regards to the proportion that you can attribute to the duplex (hint it will not be 100% of the loan and may be somewhat less than 50%).
Depending upon that state that you live, it may be possible to transfer the property between spouses however that is becoming rarer. Your claimable depreciation will start when you declare that the property is a rental eg after DA/CC works are complete (if there are any works required to fire isolate the two premises).
Karen, consider the following: you want furnishings which will perform for the longest period with minimal maintenance and suiting the premises.
In most residential situations you would consider venetians (slimline metal) or roller blinds. Vertical blinds may be an option but will only last a few years. Curtains will require regular laundering (you could consider sheer curtains for the kitchen or sunroom) otherwise try to avoid them (kids will pull on them, cords are a choking/strangulation hazard). You could also consider plantation shutters if it is warranted (high value rental/main bedroom/noisy street). If you have a busy road/rail line etc the use of blockout/thermal shutters may be considered with a sheer blind on the inside.
The type of blinds that you choose are closely linked to the type of property – don't go overboard as the quality of blind willnot generally be reflected in the rent that you get.
I am not aware of any particular literature on the pros and cons however you might consider getting some knowledge about managing strata property so that you understand your rights & obligations as an apartment owner in a strata complex.
One quick word of warning with purchasing some fittings from overseas eg tapware, electrical & a few others is that they are governed by Australian Standards and will require local certification to ensure that they are safe (ie will not contaminate water supply, correct voltage and the like).
Not sure about delivery however for a great builders supplier: http://www.hg.com.au/index.php
Depending upon what you are purchasing, postage will be very expensive due to weight considerations.
Why would you consider an over 55's covenant when the block of units next door offers similar or better amenty without a restrictive covenant?
I am not aware of any case law or planning laws which protect views (only your right to privacy).
GFC2007 wrote:But, what about Mr Markie's rental expense, is that deductible also?As the medical practice is renting the suite from the SMSF (which is a different entity to the medical centre), then the rent should be a legitimate expense of the practice.
As for the rest, the asset sits inside the super fund and would be taxed at the MRT of the superfund with the fund's expenses going against the income.
Business Activity Statement (the form you use to advise how much gst you have paid and how much you have charged).
Chris, you are faced with a couple of choices:
Sell the current PPOR, capitalise on the profits and invest in a new home & or investment property
Keep PPOR and borrow for a new PPOR, renting out your current unit
Keep PPOR, buy another IP and rent elsewhere.
(there are other choices as well).Selling the current unit will give you an untaxed capital gain (if it hasn't been rented), so you will have a good deposit/amount of capital to make your decision with.
If you decide to rent out the current unit, you will be able to claim some deductions for interest however, these will be minimal..
You could refinance and use these funds to buy another IP (or more). The income derived could be used to pay your rent in an area where you would like to live.
Matt, your issue will still be that even though you have recieved a deposit from a purchaser (either on accrual or cash basis) you will still have to pay the gst to the builder & lodge your BAS in order to get your credits until settlement.
Sewer connection is a capital cost, hence it is only able to be depreciated.
If you (or the neighbour behind) have paid S94 contributions for the provision of services for subdivision, I'd be hammering council to provide those services to the site. It is council's stipulation that you connect to the sewer however, you can argue that until council has provided such to a point infront of the property you are not obliged to connect to it.
Pardon me if I sound 'blonde' but how could your neighbour have submitted a subdivision application including your land unless you have signed his application? If the council has approved this subdivision without you submitting (either jointly or separately) a da for the subdivision, then they may have been negligent in approving the subdivision. Has this neighbour paid their council contributions for the subdivision?
