Hi all,
As I’ve never sold a property before, I was wondergin if any of you could help please?
I built my 1st property in VIC and moved in on 15Dec07.
To claim the FHOG I need to live there until 15Jun07.
I wish to put the property up for sale next week.I wish to sell the property asap. What options do I have for my contract? Can I dictacte a settlement date of 15Jun07 or are settlement dates usually a length of time. eg 60 days, 90 days etc?
What do buyers generally expect? Would an exact date around 120 days deter buyers?
I wish to put the property up for sale asap but wouldn’t want to lose potential buyers due to y settlement date being too far into the future.
Many Thanks
Why do you want to sell so quickly? If it's because you believe you've made a capital gain and want to move on to another investment, then forget the FHOG and just sell it now. I just can't imagine what situation you'd be in that would make this strategy a good one for you. Perhaps you can explain?
trakka wrote:Why do you want to sell so quickly? If it's because you believe you've made a capital gain and want to move on to another investment, then forget the FHOG and just sell it now. I just can't imagine what situation you'd be in that would make this strategy a good one for you. Perhaps you can explain?Hi Trakka,
I recently built as want to sell quickly as I want to take advantage of capital gain and move to NSW (where the FHOG is $7k as opposed to $12k here in VIC).
The property is my PPR, and so I won't be moving onto another investment. I'll buy a PPR in NSW next year.
So a difference of $5k in FHOGs is a motivating factor, especially seeing if I put it up for sale now, I wouldn't settle until April at the earliest (60 day terms). So thats only a 2 month wait for for June for a $5k gain.
You can only settle in the future, so I assume you mean 15 June 2008
And you can settle whenever you wish if you can find a buyer willing to agree. Generally investors would be happy for a long settlement as the price can be agreed upon now and they can receive any capital growth between now and settlement.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hello Touchingcloth,
My son is in a similar situation to you, but in Tasmania. Because he didn't fulfil the six months residency he has to repay ALL of the FHOG and stamp duty he received. But because he didn't inform the State Revenue Office (purely out of ignorance which they acknowledge) he has also received a 25% fine. The only way he could have avoided the fine was to let SRO know that he was not living there for the full six months, but then he would have had to still repay the full FHOG and stamp duty he received. If SRO believed he was trying to use the system he would have received a fine of 100%.
Read through your FHOG literature to see what you can and can't do in your state. You might be losing your current FHOG and be ineligible for it again.Best wishes,
Ann
Terryw wrote:You can only settle in the future, so I assume you mean 15 June 2008And you can settle whenever you wish if you can find a buyer willing to agree. Generally investors would be happy for a long settlement as the price can be agreed upon now and they can receive any capital growth between now and settlement.
Thanks for the reply guys. I have a another question.
So to my understanding, I accept a written offer and then can have a dispute over the settlement date, so the offer then becomes non binding.
At what point are settlement terms negotiated? Surely they would have to be included in the offer for the aforementioned reason.
Yep, the settlement date has to be decided up front. There are often clauses which state if the contract is not dated, settlement is to occur xx days from the date of signing – 42 days in NSW usually.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Getting back to your original question, does the occupancy time run to contract date of the sale (like CGT) or to the setttlement date?
Even with the standard 6 week settlement period, the either party can delay and the other party will have to serve a Notice to complete.
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