Forum Replies Created
Agree with Adam however I will add that a property settlement is not a ‘sale’ which is either willing, without undue haste or of the entire property (only of an interest), hence the valuation may not reflect the CMV.
Time spent on a val does not neccessarily mean that all issues are not considered or less accurate however it is a reflection of the use to which the valuation is put – a bank/investor may sue for losses realised due to poor information/advice .
it may pay to visit your tafe/uni law or conveyancing bookshop. There are other sources like smokeball etc as well.
I'd agree Henley, there is no point getting a DA unless it is for the highest & best use of the site (but the product has to be designed to be the most cost effective as well).
I'd be recommending Contractors all risk insurance (covers public liability, tools, materials on site etc). PL insurance will not cover personal injury to workers – so you will need to ensure that anyone working on the site is a P/L company with workers compensation insurance or at the bearest minimum personal injury/loss of income.
secureserver1 wrote:Capitalise that at 7-8% and you can work out the extra value you've just created. ($10,000 pa in increased rent capitalised at 8% adds $125,000 to the property value).….provided that it can be capitalised in perpetuity not just for the short term of the lease. That is, if the improvement will diminish in value to zero over 3-5 years you cannot claim it to add value past the useable life.
The vendor is under no obligation to disclose the depreciated value of any item within the premises hence you only pay a peppercorn for them and take whatever warranties are available to you as the purchaser. If you require a depreciation schedule, contact a QS. The only exception is if the vendor is selling new investment units, they may provide a depreciation schedule for you.
If you want a valuation speak to a valuer, if you want a guesstimate speak to a dozen real estate agents.
Rules (for NSW) are contained within the relevant real estate act – you should be able to get a copy from VCAT
It will depend upon the instructions that you provide to the valuer: ie if the valuation is for insurance purposes, asset valuation purposes, divorce/property settlement, sale, rental value, mortgage purposes etc – each will result in a different outcome as different criteria are used.
Simple, are you registered for GST? Did you pay GST to the builder/suppliers/subbies? Have you claimed GST credits during construction?
It is more than likely that you have already paid GST on the construction and as you will not be making a profit, it is probable that you won't have a gst liability.
Captain M wrote:No dishwasher or AC. Yes that is true, a secure front yard would appeal to families with children. Pets are fine.Pets & children require secure fencing.
If the front yard is a bog, get it fixed (even something will turn into a bog later on will be better than a bog today).
People live without dw & AC so these aren't critical.
Speak with the agent, LISTEN to what they say – some things will be dead simple. What has been the feed back from anyone who has inspected?
For the little it will cost you (and the lot it will save you if you get it wrong), I'd recommend that you go to an accountant for your tax return this year as they are more across the calcuation of cgt and losses (which must be carried forward as they must be offset against capital gains and cannot go against other income).
It may just be the busiest time of the year for the ATO so you will need to persist.
JS – you don't just jump in to commercial property on a whim. There is a lease in place for a period of 4 years plus another option period – that means the tenant has a right of occupation for the duration of the lease and option period (if they choose to exercise the option) – so basically you cannot occupy the building until the earlier of the expiry of the lease (if the option is not exercised) or the expiry of the option period – you can only end the lease if the tenant breaches the lease (and does not remedy the breach).
The terms of the lease will dicate the rent reviews, frequency and type – so no, you can only adjust the rent according to the lease. How do you know the tenant is paying 'enough' – by this I assume the tenant is paying a market rent, you can ask other agents how much ($/m2 or weekly rent for the size) similar properties would rent for (check out websites etc), conversely how do you know if the tenant is paying enough – check the rent in the lease.
A property with a 'lease on foot' is bought for the cashflow generated – market research (talking to agents, valuers etc) will establish the capitalisation rate (net yield) to establish how much that you should be paying for the property.
I'd be seeking confirmation from my accountant before claiming interest as the interest would generally be capitalised and offset against any capital gain upon sale unless you can prove that the property is income earning not just speculative investment.
If your joists are at a standard spacing over the entire area ie 450 mm or 600 mm centres then the floor to ceiling height is measured to the underside of the joists. If however the floor to u/s joists exceed 2400mm over the majority of the room, then the areas of insufficient ceiling height would not affect the room being classed as habitable.
Ask who ever is doing your conveyance, if it is a solicitor or conveyancer they won't charge you any more for questions esp if it is going to save you $1000
I generally deal with Home & Housed in Gladesville. Most of the time i talk to them via skype or phone rarely do I go to his office.
Buyers complain when they aren't kept informed of progress with a sale, it seems like they also complain if they do.
Jacqui, I'd agree. If you have full details of your costs (eg a rated bill of quantities & plans) it would be a doddle for a qs to provide your depreciation schedule.
Is it really a case of you get what you pay for? Does an online form give the same result as a full inspection? You will never know unless you use both services from the same company. That is, does the on-line form utilise photos to check all 4 walls in every room or improvements in the back yard whereas a QS visiting the site will?
I would maintain, that an inspection of the site is invaluable as it would indicate condition and would always reveal more than a non-visual inspection relying wholly on opinion.
When you are paying a 'premium' for a physical inspection (or more correctly, getting a discount for someone not doing their job or cutting corners) are you really getting value for money or just a cheap job (and losing out on write-offs and depreciation)?
