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You don’t need to convince me about the benefits of multiple occupancies on one title. I can buy multiple occupancy in a major regional city on a gross yield of 10.6%, with a net of around 7.5%. Much lower risk. I was just stating what kind of gross return I would want if I were to take on the risk of a small western nsw town dependent on agriculture and irrigated cropping where there is going to be little opportunity for capital gain and where I’m probably going to need to put 40-60% down. I quite like Warren as a town.
Seems a bit overpriced. 3.1% costs = 11,000 approx. If poor rural season and say half vacant the gross rent would be less than $24,000 – take away 11,000 costs, net return 3.8%
Maybe gross return of 15% based on the average annual rental received over the last3 years would be closer. If the properties had been fully let without vacancy this wouldbe closer to $286,000.
Suggest you start with a good mortgage broker to see whether this is feasible. Give them as much information as possible.
Think outside the box. May be you might be better to buy and lease out for a year. i understand stamp duty on conveyancing in the ACT is tax deductible on IPs because it is actually transferring the lease.
Complying with fire regs. You will need fire separation between the flats including in the roof space. Suggest you get a competent building certifier to inspect and say what the regs require.
1. Deliberately lying on loan application ie saying there is/will be income (rent) that there won’t be. Obtaining money under false pretences.
2 & 3 No effect from CGT or Land Tax
Try and find some people who signed up for the $28k and ask them for their experience. It would be good if you could find some people who have not been recommended by the company.
Steve, thank you for taking the time to describe your weekend to us.
May I suggest you do some due diligence first. One of your posts suggested wedon’t ask for advice. You could post on this forum or another forum asking for people to recommend newzealand buying agents, accountants, lawyers etc.
Second, if you are tax resident inAustralia and make capital gains overseas you will be taxedinAustralia. A trust structure might not prevent that. In fact you might have to consider what the tax implications are for an overseastrust controlled by an Australian tax resident.
You have not acquired the original property before 20/09/1985 which is what your link refers to. Do what TerryW says.
You could easily end up $30,000 out of pocket. Why was the land on that side excavated? Was there a pollution issue etc?
If the developer will buy the land back and pay back the settlement fees that sounds like a pretty good deal. This would seem to be a defect in quality rather than in the Vendor’s title and whether you would be successful might be questionable. Your best chance might be if Australian consumer law applies. Also should the Council have consented to the excavation on your site. Bear in mind you will end up out of pocket in a court case anyway as not all your legal costs will be recovered if you are successful.
From memory, the unemployment rate is based on people looking for work, not simply jobs. Jan/Feb would have more people looking for work – finishing uni, school, etc etc. Also from memory ABS doesn’t count you as unemployed if you are working minimum 1 hr per week.
Mining could result in subsidence. You would need to see what effectthst would have on development
You haven’t given any time frames showing when your father needs to settle or what he needs to make it happen. What does he need? Does he need to find say $280,000 plus to get 20% equity in properties 3 and 4.
a. can you or someone else lend it to him;
b. can he onsell any of properties 2, 3 and 4
c. can he sell his house and/or property 1 to come up with what he needs
d. see a good mortgage broker
e. get legal advice whether any of the contracts can be crashed
f. can he negotiate an extension on settlement for Properties 3 and 4
g. has he something else he can sell
h. can he get a TTR pension from his super
i. is he old enough to get a second job, resign from it and trigger a release of superannuation
- This reply was modified 3 years, 3 months ago by crj.
What does your lease say about how the payment for gas by the tenant is calculated
what state check ehether you can pass it on if the flat is not separately metered
interesting question…..so is a special levy deductible if the property is rented at the time of payment or when youa re first made aware of it.
the deductibility of a special levy might vary for each owner eg if you had purchased the unit last month it would probably be an initial repair
is this a problem the building had when you purchased even if it wasn’t known
is what the levy is doing a repair or an improvement as defined by the case law
is you moving into the second property something that can be challenged under Part IVA
there is some good information on somersoft of some of these issues
If they still have 10 months to go then you are unlikely to be able to increase the rent.
So I decide to sell the Melbourne Property and nomianate that property as my PPOR. the sale proceeds will be CGT exempt.
What if, after 2 years, I decide to sell my Brisbane Property that I’m currenytly residing in. Will the sale of the Brisbane Property be subject to CGT?
You couldinthis case add to the cost base of your Brisbane property expenses relating to that property that you have not claimed as deductions eg interest, rates, insurance
Having a pool is a great feature but not all tenants look for it in a home.
So this may hurt your chances in finding the right tenants plus there are also the extra maintenance costs.
Also it will restrict you in the future if you decide to extend or construct a granny flat at the back.
True, but if you get a tenant who wants a pool, they want a pool. We rented our PPOR with a pool to tenants who wanted a house with a pool. 7th anniversary of them being in house comes up next week.