Restrictions placed on land, esp those in very good locations, are quite common here in WA. However, I’m not familar with the other states. The reason is you stated. Speculation.

However what is not clear is that why did the developer need to drop the price by so much if the location is that good?

It is cheaper to build on a land you have as there is less stamp duty involved. The idea of submitting a plan before the house is build is to maintain a certain standard. It is not a bad concept actually as that tends to hold the property value.

Pardon my question, but what exactly is a D A Approved site?

Depends on whether you have previous experience with rentals. If this will be your first one, suggest your wife buy out her sibling. While this property is rented out, take the opportunity to look for others.

I once boght a block & build on it for rental. My accountant claimed for all the interest costs including when the block was vacant.

I think the logic behind that was the original intent was to have an income producing property on it.

It is not common to have duplex with joint garages anymore. Suggest you drive around Yokine, Doubleview & Innaloo to see what can be done on small blocks. Also speak to builders like Scott Park or Dale Alcock. They can be most helpful.

Tim is right. A shelf company costs abour $1,000 and the trust deed will cost about $200. Also, it is the company that acts as trustee for the trust. If you had purchased a commercial property, you’ll also need to be registered for GST & get an ABN.

Interesting question, Vinh. I spoke to my banker who advise borrowings are based on your salary plus rental income. Apparently they take about 70% of your rental income into consideration. That includes the new property that you may be buying as well.

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Depends if the property is +vely geared or -vely geared. Suggest it be in your name if it is +vely geared. If it is the latter, then preferably that it be in hubby’s name or even jt names.

I tend to agree with Terry that it is of a capital nature and should be added to the costs of the house. To me, it appears to be the reverse of a selling agents fees, which is capital expense. Hope this makes sense.

Interests on vacant land are generally not tax deductible. However, suggest you talk to your accountant. In particular, reference is made to Steele v FCT97 ATC 4239.