Forum Replies Created
Your place sounds like it might be asbestos sheet – you may need a licenced contractor to remove the material (it can't just go to the tip) – the rules for who can undertake removal have recently changed in some states.
Hardies products have been around since Noah was a lad. Long lasting, will need painting. The type and style you go for is personal preference and depends upon whether or not it will be subject to damage (thicker panels are better if tenants play cricket against it) – note that the old flat sheets were probably 4-5 mm thick, so 7 mm is still more than 50% thicker than the original.
Get some evidence that it is your PPOR – have the bills go there ie gas, electricity & water (all in your name), dept of motor vehicles – change address on licence & regos (you can change it as many times as you like). but you can only claim one PPOR at any time.
And home buyers complain about housing affordability!
I'd go in and see the Council town planners personally just to back up the costs in my own mind. You can't escape the council contributions however the cost to provide all of the infrastructure would be cheaper once it is tendered out to sub-contractors – the tps have only given you an estimate.
Shop around with regard to the town planning & surveyor fees. You might approach a couple of surveyors who are experienced in land subdivision (ie do it on a regular basis) – confirm the works involved, the extent of documentation required, consultants that they would bring into the mix.
CGT applies to the capital gain ie difference between purchase cost & sales price less any adjustments for depreciation claimed
Saw these stats this morning http://www.reiq.com.au/MediaReleases/view_media.asp?media_id=422
If possible, try to get a quote before you move ahead with a purchase so that you know how much it will set you back and how long it will take. Once the contracts are signed you can indicate when you want the job done (after transfer of property) to minimise your downtime.
No harm in asking for a 40% discount – but realistically who would pay $450k for a one bedder on a decontaminated tip near a medium security housing estate and with poor transport links? (ferry is on the other side of the bay isn't it and it takes 30-50 minutes to circular quay, maybe 20 by car on a really good day outside of peak hours).
A drop in the sales price wouldn't translate into a $30m write off unless they were to make a $30M loss (on development cost), it would just decrease the profitability of the project (which has had a 10+ year life already). The losers would be the investors who have purchased at $400k+ when the remain units are being sold at $350k – they will find it difficult to dispose of when they are asking $50k+ above the price of a new unit.
The questions to be asked are: what is the real value of the units? how much fat is there in the deal? How can they get stuck with 300 units? Is there pressure from the financiers to liquidate? Can you get full benefit of the depreciation schedule based on the QS depreciation schedule provided (especially if it shows the land value to be minimal)? What is your long-term investment strategy & exit strategy considering that the price of these units will not increase for several years due to the depressed nature of this localised market?
ffreedom wrote:What are the negatives/positives of buying a house to renovate & re-sell in a very short turn-around time? We have an idea to renovate and resell in order to use the profit to purchase the next property, and so on and so on. We wouldn't be living in the property at any stage. Whats the story with capital gains? And does this plan sound like a good one?
1- apply for any required DA during the settlement period – make purchase conditional upon vendor agreeing to signing a DA. If the work requires a DA after you settle, the holding costs will bite into your profits.
2- get a delayed settlement (to cater for 1)
3- CGT is applicable at your marginal rate of tax on the full value of the profit (house sale price – purchase cost – stamp duty – holding costs – legals etc). If the property is held more than 12 months you recieve a 50% discount. If the purchase is done through a company and this is the business of the company then you will be taxed at the corporate rate of 30% not your mrt and no CGT is payable
4- do an owner-builder course. You will learn how to deal with contracts, trades, organising quotes, project management, budgeting etc.If you can have super in a number of public offer funds there should be no reason or obstacle stopping you from being a director or more than one complying SMSF – probably worth more investigation.
How does the trust distribute profits to non-existent beneficiaries if you are not a trustee and don't have kids? It may not be a problem if the trust does not make a profit but it may if you are paying rent to the trust.
The term 'Owner-builder' relates to a person under the old Builders Licensing Act NSW and under the current legislation – how banks treat you is a commercial proposition regulated by the lenders not a licensing issue under DFT.
Have you approached your bank? Find out from their commercial lenders not the enquiries counter.
SDW, think of caravan parks as a ground lease without a lease. What have you got? Nothing, should the caravan park operator sell subject to vacant possession. Many caravan parks are a mix of freehold and leasehold land sitting on either crown, council or railways land with clauses allowing various forms of usage eg camping but not structures, removable structures etc.
There is generally no protection for permanent site holders, they own their cabin/improvements however it may not be practical to remove them (demolition is often the only option).
If you are that keen, it has great views, improve it, use it, lease it out, claim your deductions and generally enjoy it (maybe sell it at the end of the day) but you will always be under the cloud of an off market transaction giving you 24 hours notice to vacate.
When it comes to selling, you will need to check whether this can be done independently of the site managers – some parks require you to sell back to the site managers (who then keep all profits).
SNM
Good news is it is the STOCK MARKET which is crashing not property. This causes investors, generally, to seek safer/less volatile investment choices ie cash, bonds or property. You would feel more of an impact if Blue Scope advised the ASX that it was pulling up stumps in the 'gong as workers & businesses supplying Blue Scope would be nervous about their long term prospects.
Property, unlike shares, are not transacted or valued on a daily basis and price fluctuations are reflected (reported) historically ie median price for last 12 months as too few compable properties are traded in a particular area within a small time frame (except for new developments).
A 2b zoning may allow greater density if you have a sufficiently large block (not sure whether this is dual occ or multi-res zoning) but it would be worth checking out before locking yourself into a particular path.
If I were selling, I'd be banking the deposit. After all, it has potentially lost me the sale to someone else who has now gone on to another property as this one was 'under contract'.
That is why you get your finance conditionally approved before hand, have a good idea as to how much you can spend, what repayments you can afford etc BEFORE you put in an offer.
There has been a stigma attached to Inala for a number of years, yet the shopping centre trades quite strongly. The area may not see the astronomical rises of other areas however I would expect that it will play catch up in the longer term. Review price movements over the past few years & projections for the next 5-7 compared to other parts of the Brisbane/Ipswich corridor.
There is not a wealthy demographic in the area but you should become more acquainted with it to see if this would fit your investment portfolio.
Inala often cops bad press, a murder in the street is just pot luck, the noise will die down within months (pardon the pun).
Unless Morris Iemma has anything to do with it. Take away council's planning powers, take away S94 contributions, massive rezoning of areas totally unsuited to higher densities, ruin communities all in the interest of 'easing the housing crisis'.
Richard, why would you recommend this type of high-risk product to a first-time investor. Surely it would come down to the viability of more traditional IO vs PI loans before capitalisation of debt would be considered? The risk being tha if your property doesn't increase as fast as you would expect it would place you into the sub-prime category very quickly owing much more than the value of the property.
Jon, in NSW you can not put a property on the market without a contract being available for review by purchasers (std form contract complete with S149, sewer diagram, site survey (not essential)). You can be guzumped only if the vendor is fielding a number of offers (including signed contract) & selects between them.
It would be extremely rare to accept a bid after a property has been 'knocked down' at auction but not unheard of.
Where does Cl55.05-5 come from? Definitely not the BCA.
Is it the LEP? You will need to assess the clause in its entireity to understand teh objective. Does this refer to overshadowing of adjoining properties to ensure they will enjoy solar access on the winter solstice?
It all depends upon what you are building. You will need to use a bricklayer experienced in using AAC & aac glue, not mortar to achieve structural & fire ratings.
I have used it mainly in commercial projects all to varying degrees of success (point 2). Read CSR's website & the Hebel handbook about its uses, meet with their sales rep & discuss how you want to use it, ask for projects to inspect including current ones under construction which match your needs.
