calm down Mini – I didn’t seriously consider a trust in Bologivia (which isn’t even a country!) to be a serious option. Apologies for the accusation of tax dodging – my discussions with friends are frank enough to realise that minimisation and dodge is a fine line and perhaps I was a bit casual in this regard. If you didn’t want to take it offshore – well good luck with the positive thinking, IMO there is limited time in a day and you need to allocate it to that which will produce the most profitable outcome – tax MINIMISATION is not up there, as personally I belive it’s all been looked at before.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
ausprop,
‘come back, all is forgiven’! OK, well I knew that you were much too smart to not get it.
So anyway yah offshore. Because my devlopment happens to be overseas AKA offshore, a structure in the country I am building in seems rather boringly ordinary rather than trickily ominous, and all the rest of that stuff was ‘for entertainment purposes only’.
I realise that the implication when one says ‘offshore’ is Uraguay, I don’t even know how to spell it, and NZ is deeply non-glamourous in comparison (though dead cute) so best not be starting a company in Uraguay eh.
So anyway, last thought is, everyone’s posts revealed how deeply and utterly you all tend to jump to conclusions, leaving me battling all the ass-u-m-ptions you all made rather than having fun forging ahead. Best to watch that in future, eh. And BTW all Kiwis say eh at the end of the sentence, eh.
no probs Mini, I look forward to many more spirited discussions!
Canadians also say “eh” I think… maybe just in some regions. a strange shared trait.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
A LOT of information Mini, er… where do you find the time to actually do a Development?
[biggrin]
Baz
An unfashionable short post next.
As just a citizen you will be doing PAYE tax returns: not a professional developer.
Maybe a partnership next, doing a property or two but mostly income from personal services/contracts. Not yet.
Then one day the Tax Office says, hey, you are earning most of your money out of property development. Then you are a developer, probably needing a compny set-up and a good accountant. If you have been honest to that point, tax won’t be much more.
Slightly longer:
The way we do developments is to look for adding value. We’re not into renting after developing nor do we expect much capital gain.
We look for properties where an existing dwelling is do-uppable and there’s room for a second. We get dev. permits for 2nd dwelling and sub-divide into two lots then build the second.
We use pro planners whose office is close to council offices and assume they all drink together and know each others business. They tell us if it’s a goer before we buy.
For some reason you can buy a reno with room for the second for about 200k to 285k. 25k does up the first, 15k for permits etc and 100k will put up a modern 2 b’room unit.
Outlay, say, $390k. Sell for about $500k the lot. The properties are not selling at their realisable value, but much less sometimes. The real money comes when you get a cheapie that needs a little teasing out to work, structurally that is.
And you can do a bit of work yourself on the reno front while the 2nd one is put up by the pros.Because of Melbourne 2030, councils are very co-operative with all this, two lots of <350m2 is not uncommon.
“where do you find the time to actually do a Development?”
the glib answer is ‘watch less TV and sleep less’ but the real answer is, I ‘work’ for myself (if you can call being an entrepreneur work – it feels like a great big game most days) – so I can always prioritise what needs to be done soonest as I have complete freedom as to what I do with my time.
cheers-
mini
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