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I have never seen a copy of the vals requested by the bank however they have, when queried, always told me the amount on the valuation, and even at a later date confirmed the dates when the vals were undertakenm whether they required a new valuation or were satisfied with the old ones.
I do not believe that the bank has any duty to disclose the amount that the valuer has provided to them (under the bank's instructions). As yossarian points out it is to limit the valuer's risk (although the valuation generally states that the valuation is only applicable for the benefit of the lending institution for the purpose of mortgage valuation purposes).
Doesn't sound too unreasonable. Consider how much earthworks is required, then the roads & services. Unless you tender each part, allow for supervision, prelims etc you won't get much better. ?Try sending it out to tender.
On the second point first, yes you will pay CGT on the subdivided parcel of land, yes you will either wear or have the purchaser bear the GST (depending upon the property & buyer).
As for CGT on the PPOR, I do not believe that there is a minimum timeframe however check the ATO website.
Try Home and Housed over at North Rocks, or also in Adelaide.
It is your responsibility as the owner to ensure that the house is in a habitable condition – unsafe lighting which may cause a fire is not 'habitable' as there were working lights when the tenant moved in and providing they did not install them are not their responsibility. They may have cause to break the lease.
Halogen downights will be phased out in 3-5 years so make sure that you install new LV fittings which will be compatible with LED downlights. Use electronic ransformers rather than iron core (old technology and less efficient), and that each transformer is a plug-in rather than hard wired (that way you just replace the transformer without calling in the sparky each time).
As the work is repairs but exceeds $300 it should be depreciated.
Banks will generally only revalue properties when the mortgagee requests to make a change to their finances ie new loan or restructuring. That said, it won't happen more frequently than every 3 years unless there has been a major correction in the market and your properties would be in those areas affected (eg Sydney Western suburbs).
Very few banks have in-house valuers as this is no longer effective for them to bear the risk/liability that deficient valuations may bring, they use external contractors to undertake this work and to bear the risks. In-house valuers are used to review the valuations and performance of the contract valuers.
There are moves afoot in the industry to require banks, like some other classes of property owners, to undertake regular valuations of their loan portfolios – needless to say this is a risk management exercise and they are required to have a fair understanding of their risk profile and how changes in the market may have affected their ability to claim on these 'assets'.
You will need to find out about South American Tax Law, whether they allow foreign nationals to hold property, whether there are any reciprocal rights with regard to tax paid on SA income. You will also need to get a good understanding of property law from a local point of view. Latin American countries are more likely to have a european system of land tenure where tenants rights are much greater than here.
you can't claim gst on resi property however you claim the full cost of expenses ie plumber $110 incl gst. The reason being is that you don't collect gst on the rent, unless you are a corporate owner and you have to remit gst on th e rent.
As most valuations are undertaken without full access to a property it shouldn't be an issue to establish the value of the property at a point in time. You have basic information – purchase price, reno costs, dates etc. go for it.
If the 2nd dwelling hasn't been approved by council, then it isn't a dwelling it is a garage. The income generated is thus from a single dwelling and should be priced as such – if the agent is representing otherwise it is misrepresentation unless they can produce the 317A (Occupancy certificate).
You may make an offer conditional upon the vendor providing the occupancy certificate or an offer with a bonus of say $20k to produce the compliance (if you know that it doesn't have that certificate at present and there is an outstanding order on the property).
Issues pertaining to conversion of a garage: may include waterproofing (usually single skin brickwork, no membrane under slab), no smoke alarm, illegal plumbing to kitchen/bathroom and the list goes on). Yes it will cost a fair bit to rectify if there are major problems with the 2nd unit.
As I pointed out earlier, you need to read the rent review and the option provisions to understand what is permitted and how the rent review will be enacted. If you don't want to use a property manager speak with your solicitor or a valuer who will explain your rights for the rent review.
What are the terms of the rent review? Is this the current term the last term or is the option still to be exercised? If there is an option to be exercised then you will need to read the rent review clause as it will be quite specific as to how the new rent will be determined. It may be one of many methods but commonly: fixed increase, cpi, cpi with ratchet, market. The latter will require you to have an understanding of the market and of market rents as well as how market rent is to be determined – you may need to consult a valuer if there is a dispute over market rent.
You will need to ensure that the option is exercised within the option period eg may be between 9 & 6 months from expiry or 9 and 3 months etc. The risk will be that they don't exercise their option.
Get tow or three to provide you with a standard copy of work for a similar premises to your own, client references and come to your own conclusions
That one is a global product, it handles both straight line and accelarated depreciation. I think both Aus and NZ are party to the international accounting standard (AFRIS) and this will go a long way towards meeting any compliance requirements.
At present you have no clear intention – is it to sell them off or is it to hold and rent?
Is it structured as a business or sole trader/partnership?
Are you claiming gst input credits, using the margin scheme etc.
Until you can prove that this is 'stock in trade' then you can't claim the interest costs, likewise you may have to capitalise your interest if you decide to hold.
It is reasonably cheap, the smallest package can handle most users, built for residential property but can handle agency type work.
They all come with forms/std letters – just don't use the module if you don't need it.
Not an online service – it is real software that can be downloaded, trialled for 2 months and purchased.
There is optional software upgrades if you want it.Make a loss – you can only offset a previous capital loss (which can be carried forward indefinitely) against a capital gain – buy high, sell low and carry the loss forward (or sell some shares at a loss).
Speak to a commercial builder or someone who specialises in villas/townhouses – may give you some savings especially as they handle bigger projects.
18-2 years wouldn't be out of the question however you might consider staging the project if you can provide safe and completed access to the properties that you want to sell off first (hide the rest of the development behind a temporary fence/landscaping).
WJ, the packages vary –
Rent Master:small user (15 properties) is sub-$135 up to unlimited $450 AUD, most private users would cost up to $225
POSH – about $400
Property Pro – about $150
Clarke – >$2000
Progenisis – $10K+No cost option is to use google docs
I recently shifted to Rent Master – I reviewed several to make that decision including Property Pro, POSH, Clarkes, Console and a couple of others (with an open mind & budget). Good value for money
