Forum Replies Created
yarpos,
You mean landlord insurance? Not compulsory but I'll have to look into it with such a decent rental return, and in that case, I'm sure they'll check these points. Have to verify even if they've got a bond down.Thanks for that. Have due diligence with the council on my letter of offer as well. And will check for the smoke alarms. Seems they were made compulsory here in Victoria some time ago. Will have to read up some more on the units. Re student accommodation, it wouldn't technically be defined as "student accommodation". It's just a basic 4 bedroom unit at the back of a block…. with a lot of students in it!
Scott No Mates wrote:You may need to check into this but I would suggest get the development approvals etc to maximise the value of the property, then get the place valued by a valuer (instructions that the building is to be valued as a development site with DA/CC in place) – this will maximise your cgt free portion (ppor). Then transfer the property to a new entity (trust/single or multi director pty ltd company) at a price reflecting the development site at the assessed value.So get the approvals before getting the place valued as it is as that should yield the highest value? And when getting valued, get it valued as a development site to maximise the value of the PPOR? I ask as, my fear is that the property (and suburb) has reached its peak for the next couple years. Like many other suburbs in Melb, it's median appeared to drop from Sep to Nov 2007 (effect of rate rise?). Check Domain v Home Price guide's median prices to see what I mean. But I guess the valuing part for this purpose can't be done without the permits being in place which would result in its highest possible value? You may then ask, why do the project? But if I'm right in my prediction of median property/suburb values, at least I know I have two years to time and roughly actually commence building. But I would only start in a favourable point in the market, which I guess would be the time to get the valuation done for its highest value anyhow? But I guess your point is that the key is getting it valued as a development site as that really maximises the value. What kind of entity should I get for the valuation?
Scott No Mates wrote:Undertake the development in the name of the new entity who will then pay tax on the profit (if the MOA of the company allow property development) then if you 'work' for the company add your costs to the development costs to minimise profits on sale.Would have to really trust the directors of the company as well when it comes to what they do with the profit too ey?!
Has anyone got a link for more recent stats like this (the above ones are from 2003/04)? I'm not disputing the west is no more worse than some eastern suburbs argument, I just want these kinds of stats. I remember there was one car insurance site where you could extract some of these stats by changing the suburb you were housing a car in but it took too much filing out!
I live in the north and there are some suburbs here that have pretty bad crime rates. Looking at the above list it seems to be a mix of dodgy outer suburbs (in all directions), a couple extremely wealthly and supposedly 'affluent' ones (that are targeted for obvious reasons) along with a lot of urban suburbs on the fringes of the city in all directions (many of whom used to be classified as rough areas but have gone up heaps in value largely due to their proximity to the CBD).
Elkam,
Thanks. I was a bit presumptious in my post but you've cleared up what I wanted to know. Thanks again.Firstly, thanks for the responses.
elkam wrote:I thought Steve meant money in the bank.
So if you have loans totalling $200K then he recommends having $60K cash available.By "loans", do you don't mean the initial amount or rather what's owing on them?
foundation wrote:The problem with 'equity' is that it isn't cash.I would've thought redrawable money is as good as cash in my example? Well, I guess it depends on the type of loan. This is an offset account where that redrawable money is not equity, it's cash. The place is worth 450-500k but that wasn't factored into my calculation as that implies I'm using equity in the equation.
