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Any Sydney QS will do. Try Parramatta.
SNM
Earthling, firstly, in order to contract to do "building works" as defined (ie works over a value of $12k) you require a license, regardless of whether she is paying the contractors directly (ie you are providing a project managment service for works valued over the threshold).
Your partner will pay cgt on the profit (unless you are also a part owner and you would also be paying cgt). You will pay tax on the fees charged for your services (or on the amount that your g/f pays you from the profits).
What will be the situation if the renovation results in a loss?
ZJ, LV does not reflect values it is used for statory ratings puposes. They do not go up by "30% each year" this is BS! The VG undertakes its valuation cycle on a 3 year basis (or 4 years in rural districts) with minor adjustments annually. If you can cite the addresses of 2 such sites which have increased at this rate I'll buy you a beer (and a hanky). Land tax is then levied on the average LV for the previous 3 years (2 years of which are not published but can be found on the OSR website).
If you are forced to sell as you are so precariously financed – should you not take a less risky approach to investment if you cannot afford a $5k land tax bill (after all it is tax deductible)?
Zoe, land tax and land value is based on statistical information gathered through the sale of comparable properties in an area. In assessing the LV of your property, you can view which properties have been used to determine the LV for yours (via the OSR website) and assess for yourself how comparable they are. Unless you have a proper understanding of the Valuation of Lands Act (NSW) and its operation (or have fully discussed the merits of an objection to your LV with a practising valuer) how can you be critical of the LV system? Yes land IS expensive in Sydney, it is reflective of prices for established premises and the cost of establishment of new subdivisions.
Where LV's are out of kilter with property values, it would imply that the property is grossly underdeveloped or in the Maurici case, reflective of an unrepresentative sample of vacant properties in a developed area. It is not unheard of where many owners may be asset rich and cash poor hence their properties may be in disrepair and not earning a market rental – is that the fault of the valuer general, the state government, the financiers, the accountants or the investors poor attitude towards the maintainance of their asset?
A way around paying NSW land tax is to limit your holdings in NSW and to diversify to other states ie buy 2 or three properties in each state/territory – that will take a little while to catch you up on land tax.
Contact the council firstly to check if the DA has lapsed, if so, what is required to restart it or extend it? Then ask the town planners what it will cost for their approvals. A civil engineer or a qs should be able to ball park some subdivision costs for you.
There are other threads on this – so search them out.
Predrill it – wear a mask, keep the area wet to stop the dust. It is otherwise a very brittle material.
Trakka, the agent acts on your behalf. If you sack them, then you can do all the dog work yourself ie reference/credit checking, trust accounting, issuing of statements, inspections, advertising/marketing, open houses etc.
Tammy, as far as I know, land tax is charged annually in advance based on the ownership as at 31 Dec of the previous year. You may need to check if the bill is for last year or for this year, and advise the OSR that you have disposed of the property. Query your solicitor as to why they did not make a land tax adjustment to the property.
For value, look around Blacktown LGA (Toongabbie, Blacktown, Seven Hills etc) – good sized blocks, some are subdivisible others just able to have granny flat etc. Area is close to transport and prices have taken a hammering so there may be some good buys to be found.
Any other mobs like prebuilt able to supply to the area?
Firstly, do you have a builders' license? You can't contract, even to your girlfriend, without one. Onwer builders licence is a possibility but you are restricted as to how many jobs you can do over a certain timeframe ie one every 5 or 6 years and you must do an owner builders course (nothing stopping you both doing the course and taking turns as the builder).
Can you clarify your intentions? I am reading it as: G/F Buys the property, you undertake work (and get paid), she makes profit & then splits it with you? Essentially, you do not take any equity in the project, just invoice her for the works undertaken and your final invoice (for half of the profit) hits your g/f upon exchange of the sale contract. You are acting as a builder then you need a licence (and an abn).
You can't be a subcontractor unless someone is the contractor – is she going to take on this role?
She will be up for capital gains tax when she sells (as well as any gst on construction costs during the works).
Only as good as the area in general – they will not appreciate more than other houses. It may be worth going through all of the motions with DHA, finding out where the houses are (usually near barracks or other facilities) and buying nearby eg Williamstown, Townsville, Richmond. find out long term plans for the military base eg expansion, consolidation, closure etc.
There are many service industries which rely on large industries like the military so there will always be a need for housing of allied services (not necessarily through DHA).
Basically, the vendor is trying to recoup land tax that they have paid – there is no obligation to pay unless you have agreed on the contract (I usually nominate that as it will be a PPOR then I won't be taxed so I shouldn't bear this cost – confirm with your solicitor & accountant). There is no benefit to you for paying someone else's tax bill.Depending upon how the vendor owns the property it may or may not have the benefit of the land tax threshold (eg company). However if you do have to agree to reimbursement of land tax, do so only on a 'single holding basis' so that the amount to be reimbursed takes into account the threshold – again, speak to your solicitor to frame this correctly. (Single holding basis refers to a threshold above which tax is charged eg current threshold is $359k total holdings, so in your case $650-$359 = $291k x 1.6% = $4600 vs $9,100 if no threshold was applied).The reimbursement is calculated the same way as rates etc – eg if the land tax for the whole year was $12k, settlement is 1 April, then the reimbursement is only for 9/12 of the total.If the only area to conclude the sale is land tax, present the agent with a signed contract with your preferred (no land tax) ticked. He will be obliged to pass it on – good tactic to use to get a hurry on. Make sure that you write your conditions onto the contract (seek your solicitor's advice) and put a sunset clause (expiry on the offer).
There are a number of threads on DHA investments Louise. Typically they are set & forget however you pay a premium for them, ie higer purchase price as well as higher management fees. It depends what you are after – the ups and downs of the market with vacancies or a 10 year lease with annual reviews backed by a AAA tenant and all outgoings, repairs and maintenance paid for.
We engage a PM to do what they do. You give them specific instructions as to the type of people you want to lease the property (within reason) ie you can't ask for a specific however the area may dictate a specific type of tenant eg area for migrant settlement or itenerant workers etc.
The PM will keep you informed of the types of tenants and will discuss them with you (after culling out the non-suitable ones). At the end of the day, you can request that the PM provide you with a copy of the front page of the lease with all of the tenants details.
Hit and run. If you are prepared to sit on $50k investment/risk in the company, take your profits now (and keep them), leave the balance ie $50k there if you want to carry the risk again of the price hitting the target – it will still be worthwhile to you.
See the answer to MK's question and contact http://www.osr.nsw.gov.au
AO, assuming that you are in NSW, then it can be either y/n. Basically, it means that the vendor was the owner as at 31/12/07 & has been assessed for land tax (which they may have already paid). They are seeking reimbursement of the portion from settlement thru to december ie 75% of it. There is no benefit to yourself in reimbursing the vendor and you can't claim it back. Contact the office of state revenue to check http://www.osr.nsw.gov.au You are within your rights to submit your offer conditionally that you will not reimburse land tax or on a single holding basis (if the first isn't an option). The Threshold is $359k and it is charged at 1.6% of the land value – not of the sale price. Land tax will not be significant unless you are buying an expensive property
See today's Sydney Morning Herald – $80k in Qld or WA, no experience. $80k+ food/accom for truck driver/water cart.
Land tax is levied on all combined holdings above $359k (with a limited exception for your PPOR) refer: http://www.osr.nsw.gov.au/taxes/land/rates/. Cost and land content are two different things. Have your registered for land tax? (there may be penalties involved if you haven't). Review the budget for the body corporate's sinking and operational funds to see if they pay land tax or query the strata manager.
14% would be unreasonable, refer to Option 1 or 3, don't just accept it, especially if it is $60 over 2 years (if they think that you will wear it, they will do it again next year and the rent will be so far above market it will be hard to re-lease at that level).
