Hi Redwood, would you say in general terms that one would pay a decent premium for a property that already had approved plans and permits, over one that didnt?

http://www.realestate.com.au/property-house-vic-craigieburn-120824081
Something like this would be perfect for you,if you look long enough and hard enough the bargains are still there.

Thanks for your replies,will suss it out.

The 20% deposit may have something to do with this? Particularly if through Bankwest.
http://www.smh.com.au/business/banking-and-finance/banks-put-brakes-on-investor-lending-20150521-gh6imi.html

The 20% deposit may have something to do with this? Particularly if through Bankwest.

For what time period can a loss be carried forward? Is there a limit of financial years?

Thanks Terry,my understanding now is, if sold in under five years GST would apply,and profits after GST and costs would be added to taxable income for the year. If sold after five years of being rented, no GST would apply and CGT should apply instead of income tax. Seems a better way if can afford to hold them for six or so years.

Thank you both for your replies and clarification, i will look into it further and add in CGT to the calculations.

To do all that for a nice finish level for Kilsyth i wouldn’t expect much change from a million. Also factor in selling costs,and taxation.

Thanks.

Terry, is it rarely that a client will be audited? Or rarely that reason is applied to said audit?

I think a lot of these “professionals” do not know the laws and codes they are bound by,nor the limited scope of their own profession. As always,it is a case of buyer beware,and choose the teams around you carefully.

I won’t be surprised either Colin. I read the other day that the ATO was going to run head on against developers playing with using cgt within trust structures and not declaring profits as income,logical next step to me would be interest only loans and assessing if they are fit for purpose as deductible expenses.

Thanks Terry,finance issues with the trust might turn me more towards the way the new guy did it,keep it in my name and work it all out in 18-20 years.

  Thanks for the replies. JacM, as you said property isn’t the only investment,but over the length of time we are planning on,it looks to be a good one. On the trust issue would it be worth setting one up just for one or two properties?