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Get in with a new val before more current sales (in a depressed market) are recorded.
Don't forget, any capital gain that you make on your ppor is tax free – it is not all bad news.
To put it simply, as a PPOR, there is no deductibility for any costs whatsoever.
Provided that the funds are being used for an investment property/shares there shouldn't be an issue – you are refinancing in a very short timeframe, nothing wrong with that.
FIrst step – consult your town planning department at your council – they will tell you whether you would be permitted and what you must do to satisfy council & the WA Lands dept for subdivision.
Try contacting one of the sales reps at CSR – they should be able to tell you who is using their product and show you a number of sites which have been built,
Having a bc will force all owners to contribute toward the upkeep of the building structure & maintenance of common areas – this is generally seen as advantageous, there is no need to shy away from it. You can consider appointing your managing agent as your proxy to attend to any business relating to the property (or telecon any meeting).
Something to consider: how long have you owned the property?, how much of the equity that you claim is from paying down principal on the loan?
If the equity is from repayment of the principal rather than from an increase in property values (& assuming that you don't have an interest only loan), then it may be possible to refinance for a smaller amount than your current loan thus reducing your repayments. You will need to consider whether there will be any break fees, early repayment penalties or other factors (like fixed rate loans) which may impede your ability to refinance.
Unless you breach the lease it cannot be terminated prematurely ie before the year is out. That said, the landlord can give a shorter period of notice prior to the expiry of the lease for vacant possession. refer to http://www.fairtrading.nsw.gov.au for your rights
As you are not on a fixed term of a lease the landlord can increase the rent as many times as they feel necessary each time giving 60 days notice – if you feel that the increases are not warranted you can enter a dispute at the dept of fair trading.
Entering into another lease is optional however it does have benefits for both parties – for you, there will be the security of knowing that you have the premises for another 12 months, rent will remain at the commencing rent unless you agree to another increase (on the lease) during the term. You cannot prematurely end the lease, currently you can give 21 days notice and the landlord can give you 60 days notice to vacate.
For the landlord there is the security of knowing the place is leased for another 12 months.
I prefer to continue with the tenant being on a new lease so that we both have some security over the period
Aren't centrelink benefits determined on total assets (not net asset base)?
Why go to all of the effort & cost of sale, leaseback & repurchase? Can you not offer your sister a loan at minimal margin over your cost of funds? Just formalise a loan agreement, determine how much she will need & when she will be able to repay you? Will she qualify for any govt allowances whilst studying? Is part-time study/part time employment an option?
Generally you consider a knock down & rebuild when it is no longer feasible to keep the existing building ie it is at the end of its useful life eg the cost of maintenance is increasing dramatically, the cost of an upgrade/extension can no longer be warranted ie too costly to effect (refer to life cycle costing texts for more information).
If you are planning to extend and it will cost $150k to add the extra bedrooms, ensuite, stairs & structural mods (plus repaint elsewhere, new kitchen & bath) then it may be more cost efficient to rebuild. The house may be unliveable for 6 months either way so it becomes a matter of economics rather than sentiment.
Split your LOC, at least you can easily track your investments and you do not need to worry about apportioning any interest/repayments
Other factors can also play their part in the drop in the median price eg a decrease in the commencements/approvals of new dwellings leading to a decline in completions. That is, if the majority of recorded sales are for resales of dwellings (other factors aside) the developer's premium does not play as great a part in the median price of sales (especially in areas where there have previously been numerous sales of new premises.
There is no hard and fast rule however making you aware of offers which have been knocked back is a strategy to induce you to put in a higher offer. The agent will generally not disclose who has put in an offer – this would be a breach of their duty to their clients.
Refunds are available on application ie they cannot charge SD on a contract which does not come into force. This is the same for sequential leases where they are terminated prior to their commencement date.
If that's the case, then own the factory independent of the business, charge the business rent (whatever makes sense – refer to your accountant/fin planner about structuring) – probably easier if you say that you have pre-leased to xyz p/l (self) than being owner-occupier.
Best time to buy that I have found is when the vendor is bleeding, maimed or possibly decapitated (by the banks, family issues etc). There is nothing like a distressed sale to bring out a very attractive outcome.
But otherwise – beach suburbs in winter, seasonal property out of season (eg ski property in summer), country – in drought.
There is usually little capital growth in commercial property until some of the market fundamentals change – ie Sydney CBD has been sitting on $8-10k/m2 for quite a while, so unless there is some new pressure eg rezoning to move to a more intensive use, then property prices will not fluctuate wildly over a given timeframe.
Having said that, prices will fluctuate according to yield (the main characteristic relied upon by valuers) ie if there are high vacancy rates then prices of properties will fall as the yield has raised reflecting higher risk exposure conversely a property fully let on good covenants to AAA tenants will have a low yield reflecting the stability of the tenant and the reduced risk exposure to the owner.
Areas which have recently suffered ongoing downturn due to the tech crisis (yes vacancies are still there) are now only just starting to turn around eg St Leonards, Chatswood & North Sydney however competition is growing due to external factors such as the new Chatswood Epping railway which will service the high tech area of North Ryde which offers larger floor plates than are available in areas much closer to the city.
