Forum Replies Created
CGT = Rip off
Great post by the way, good idea!
regards,
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
michj wrote:Hello All18 months ago my partner and I purchased a property using Keystart finance. As our combined income was too high to finance through Keystart we were forced to put the property into my name alone. We have sinced moved out of the property and are leasing it out. We have also had a child and i'm on maternity leave therefor earning no income. The property is considered our PPOR as we are renting the house we are living in. We are in a sticky situation as Keystart require us to owner occupy the house, they granted us a 12 month period to lease the house out before we either have to re-occupy the house or sell it. We have moved 600km away and do not plan on returning to the property. The problem is we can't refinance it as it's in my name and i don't have an income, if we refinance into my partners name we would have to pay SD and then would also we eligible for CGT as it would become an IP. My question is, can we use the equity in the property to buy a house where we are now living, in my partners name or joint names? Obviously we don't have the cash deposit as our money is tied up in the other house. We plan on selling the other property but would like to buy another house before we do so that we can make full use of the equity. Is this possible?
Sorry its very long winded but there are lots of complications it seems and we don't know where to start.
Any advice would be appreciated.
Cheers
Michelle
wow! a bad situations to be in…i never liked keystart; yes i know they are aimed for lower house hold owner since they are manged by WA Department of Housing….sigh
Yes it is possible to buy another place under joint name- use your equity ( if any) plus use her income to support the transaction. The sell your current PPOR with no GCT and move into the new one – PERFECT but…The only way around this is to take out a bridging loan! because without looking at your income i doubt your partner’s income can support 2 mortgage? am i right….
If that is the case, a bridging loan will take in consideration that the old place will be sold – so serviceability is slightly better, and affordable.- One of the main condition to a bridging loan is you got 6month ( some lenders up to 12month) to sell the place; till your “FORCE” to pay the 2 mortgages and force to sell.
It’s a good idea to see how much equity you have in your current home first and to see if a bridging loan is possible for your situation.
Email me if you want more help/details- i can send you a flyer and a step by step guild if required.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
willister wrote:Hi,I'm pretty much in the same boat, only difference is being in Melbourne. I think with commercial property, biggest difference I felt vs residential is that the vacancy rates are much higher and longer!
It's up to the 7th month mark and I have analysed everything that has "gone wrong" with the property and put it in the best position to be rent out, fixed everything that could be fixed, revised the marketing plan as advised by other members here and also pressed my agent to "work smarter" on renting out the property.
Still fingers crossed for me…
Regards,
Will.
That's true, hence why commerical properties has a higher interest rate due to risk….
But 4 years?!? that's nonsense….
Willister- let us know how you go with your property ie…did you lower rent etc….so another memebrs (including me) can learn if we encounter a simliar problem.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Fair enough….i learn something new everyday
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Monty1 wrote:Hi folks.
Sorry, complete novice here and wondering if I could get some very broad stroke/ball park ideas on what we might be up for if we were to consider subdividing our block.I haven’t even had a chance to work out our exact measurements, so they too are ‘ball park’……
We are in the southern bayside suburbs of Melbourne and we are on approx 650m2 land (can’t remember if it is 647 or 674??). Our current house probably takes up a good 2/3 of that land (including front garden area and small deck out back) so it would leave very approximately 220m2 available out the back to fence off for subdivision.
My first questions are :
1) is this enough land to build something on? It would most likely just be a 2 bed/1 bath unless we built double-storey but probably couldn’t afford that. But of course we would try to utilise the land as best as possible. Just wondering, in general, if that might be enough space to do ‘something’ with.
2) what sort of costs would be be looking at JUST to get the subdivision approved (an estimated price range is fine, but if you could add any comments as to why it could be at the upper end of what ever price you suggest so that we can keep this in mind).
3) Then what sort of costs would we be looking at to get the land ready for build – ie drainage, power, any other considerations.
I guess we just need to know what we might be up for WITHOUT factoring in the actual building/design costs of the building itself at this stage.
4) Is there a ‘guide’ as to what sort of return you expect on a subdivision? We would probably have to subdivide the land, sell our house on the front block to fund building the second – rent while building the back property – then sell the back house – then we would have to buy all over again for ourselves.
Of course we want to do as much homework as we possibly can before jumping in and then finding out that costs are double what we budgeted for – or along those lines.
So I am just trying to get a feel for it all to see if it is even feasible to entertain the thought of subdividing before we delve further.
Sorry to be a bit vague, but I just need to start gathering my info. We might be facing some financial difficulties in the very near future so we are starting to consider subdividing as a way to make some money. I am happy to answer any further questions if it helps to answer mine.
Thanks for any info you can throw my way – or point me in the direction if all of this has been answered over and over for newbies like me
Monty
1. The question is what is the ALLOWABLE size and height your COUNCIL will approve?? you can build anything larger then 100 squ meters, because you can go upwards and dig under ground as well…..it just depends what your council allows? — is it a 60:40 rule? or 50:50 rule etc…. speak to the council.
2. $10,000 just for the approval process and drawing plans etc. – NSW- Hornsby council.
3. $20,000 -$40,000 if you have a flat land, good soil.
4.Depends on the area, and the total cost of your “project” – i know 2 couple who made a LOST! from the subdivision
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Im guessing your talking about a SMFS.
I haven’t tried this, but i dont think it;s possible as well?? because;
Every purchase needs to be authorized by your Accountant and the Financial planner of the SMFS – and i doubt any of them will allow this lol
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
