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A couple of things to consider: the property has been owned prior to the introduction of CGT and would generally have been cgt exempt. I believe that if they sold the whole of the property it would have the exemption, eg sold to a trust to realise the whole of the profit/cgt. If it is sold with the approval then they can realise the entire capital gain without attracting cgt. The trust can go through the motions of subdividing and having a nil profit (if this is desireable). Your friends could then rent their house from the trust (like any neg geared property).
A val on the portion to be sold shouldn't be required as it is to be sold at market (ie what ever price market pays).
AS for your plan, selling the remaining 1/4 acre would not attract cgt if it is their ppor.
$2-2.5k/m2 would be about right. Maroubra has sandy soil, needing engineered footings. Project homes are cheaper.
It would be impossible to sell (or even have purchased) the property if it did not have a title. In NSW you can use the lands website to check for a properties title details ie lot & dp including boundaries. I'll assume that this lot otherwise requires a subdivision.
Try RPD for the whole street or a nearby address then move the map accordingly onto the subject property (this may only be available on the commercial package).
If all else fails, try using one of the commercially available title searchers.
Won't be much more than $2.5-$3k pa based on the 2.5% allowable deduction (you may get more via a Quantity Surveyor)
keiko wrote:you will find some agents do that especialy the stupid ones if i was an agent i would present every offer because you never no what the vendor will do, Ive made offers that i no were never presented because the agent thought the offer was to low so i go past the agent straight to the vendor and sometimes you get a deal, he probaly never even took your offer back to the vendorAgents are required to present all offers to the vendor (unless the vendor has instructed otherwise). http://www.legislation.nsw.gov.au/fullhtml/inforce/subordleg+490+2003+FIRST+0+N#sch.1 See Part 3
You can bequeath anything that you own to someone in your will, in the case of property you can decide if you want to pass it on to all three as joint tenants (in the same or differing proportions) with the right of survivorship or as tenants in common with nominated proportional ownership and the right of the beneficiaries to independently deal with each portion as they feel necessary.
You've lost me – 'all the units are torrens titled'. Torrens refers to the real property act 190? which basically means the Crown guarantees the title to the land. Do you mean that each unit has been Strata titled ie each has its own individual title?
With regard to land tax, if the total value of the land owned exceeds the land tax threshold, then you will be liable to land tax (ie need to add up all of your landholdings then deduct your ppor and the threshold).
Depreciation is totally separate from having tenants – it does not relate to the tenant but to the age & use of the building.
You will need to check whether there are any outstanding fire orders or compliance requirements from council – this may mean that you have to install fire hose reels, exit lighting, hydrants, fire doors, fire compartmentation etc which can run into big $$$$.
It all depends on its significance ie is it listed on local register, state register or National Estate. It is easier to get an item of local significance overturned however if it forms part of an overall area (eg part of the suburb which has been conserved) then it will be much more difficult to get overturned.
You will need to consult a heritage planner, who may, give you the nous to incorporate the existing building/s into any proposal.
Can you apply for the loan in your names and not the mother-in-law's?
duckster wrote:Be careful
when demolishing fibro houses.
Get houses' fibro sheet cladding tested for asbestos as if it is asbestos you will have to employ an asbestos removal company to dispose and remove the asbestos due to the health risk.These demolishers are licensed to undertake demolition of asbestos – be wary of contractors who are licensed (there may also be implications on you down the track if anyone becomes ill in the distant future and they can pinpoint it to having worked on your land).
Put simply, there is no rule of thumb – it is a negotiation. Negotiation comes down to being able to make the two parties agree on common ground ie at what point are you willing to walk away from the deal never to be revisited? and at what point will the vendor no longer be interested in talking to you (this will relate to their motivation for selling)?
As above, unless they laugh at you, you're in the hunt.
Dukduk, Overcapitalisation means spending more money on an investment than can be justified – this is an analytical decision based on what the property is worth at present, how much you are going to spend on improving it, the end market value and any cashflow generated – then comparing it with similar properties.
In your case, you will need to ask the question of council as to what is permitted in zone 3 in your LGA. Ie are you zoned for medium density, multiple dwellings or only single houses with a granny flat?
You mention raising to legal level – I assume you mean raising the whole building so that the lower level will have a legal ceiling height – this can be quite expensive and there may be other alternatives or other issues that you may need to consider: eg excavation and restumping. You will also need to confirm whether you are in a flood zone (hence built up off the ground).
Whilst your house is your residence there should be no issues with redrawing any or all of your money (providing you are able to meet the bank's requirements). There may be an issue should you decide to use the house as an IP in the future and claim the interest on the money which has been taken out (depending much upon the fashion that you will be taking out the money eg from an offset account, redraw facility or new loan).
C2 wrote:Are the 2 smaller ones in the same block?As with other investment decisions there are pros and cons – buying into the same block gives you more voting power at body corporate (BC) ie you have a greater interest in the property than someone who only has one unit (this can be good or bad – eg you may be able to block important/necessary expenditure or alternatively be able to push for upgrades etc) conversely if all of your properties are within the same block then you have little diversification ie spreading your risk if your unit block becomes less desireable.
Copies of the new code and fact sheets are available at http://www.planning.nsw.gov.au/planning_reforms/housing_code.asp
Your solicitor/conveyancer should be able to recommend someone
1 – Don't rely on the REA, in the first instance speak to the town planner at council (Hornsby is reputedly difficult to deal with ie very slow). In the first instance you could probably deal with council but if you need to get a spot rezoning it may take up to 2 years (so avoid a spot rezoning).
2 There are a few project home builders who do townhouse/villas however you can also approach some commercial builders with plans or on a D&C/Turnkey basis
3 PM me for details
4 http://www.bmtqs.com.au/construction_cost_table.htm (Use with caution). Best to get yourself a copy of Rawlinsons Small Builder (from TAFE library or purchase but it is not cheap) also use with caution.
Don't listen to the agent – do your own investigations. The agent is working for the vendor and in the vendor's interests.
You can always create a binding nomination in your super ie you must nominate who is to recieve your super (& insurance payout) in the event of your death) – speak to your super fund manager about this.
It all depends upon who is building ie if it is a project home in an estate timeframe for DA & construction may be shorter, project home on your land or one-off timeframe is very dependent upon the council and the quality of plans presented (some councils even require impact statements, traffic studies etc).
As for inclusions or more importantly exclusions – these vary widely between builders eg some will include driveways, fences, paths, grass, clothes line, garden taps etc externally but many exclude these items. Others will include carpet or tiles to some areas only (not whole of house), a/c, alarm, auto roller door etc are often 'extras'. You will need to prepare yourself with a whole lot of your requirements ie what do you want in the price, what don't you want included (these are things that you want to do yourself or when the budget allows – front fence, gardens, pool/landscaping, pergola etc).
You could check out Rawson Homes (country based/long established but does its share of Sydney work).
