Forum Replies Created
Hi all
Thanks for the comments
the point of this is to obtain finance. Parents no longer work, therefore no way to get finance to construct.
Big four banks are preferring applicants as opposed to guarantors, plus only 50% of the income of guarantors can be commited to the construction loan
Therefore, only way for a bank to be comfortable (and even then some are saying that all applicants should have an equal share in the title) is to be on the title and therefore have a registered interest – and cheapest way to do this is via having a 1% ownership in the property
I am getting conflicting advice regarding the tax implications. The ATO said, that as long as it has always been parents' PPOR and post construction the house is used for a minimum 3 months as a PPOR, then the whole process/transcation/capital gain event will not incur CGT. The ATO said this to me via phone on 3 separate occasions by 3 separate pople.
They even said, that although the title is changed [Yes, capital gain event] (via adding the children as 1% shares), us (children) have always lived in the house and still live in the house to this day. Post construction we will all (as a family) intend to live in it for a minimum 3 months or more to qualify for CGT exemption, and therefore, if everything I am saying is correct, than upon selling the house, there will be no CPT applicable, given it has always been the PPOR of the parents (pre-title change) and was the PPOR of the children (post title change) during the time that they were on the title. Also, it is not feasible that we live on the land during construction, however I understand the ATO has exceptions for this given people obviously cannot live on a property whilst the house is being built.
The ATO said that although I am demolishing and constructing, this would not affect the pre-CGT given the house has always been PPOR and, given its state of dis-repair, a new house would not affect CGT.
My problem is, this ATO advice conflicts with the advice I have gotten from 2 different accountants in Sydney, although one other accountant did say something very similar to the ATO
So, my problem is that I still can't find a good accountant – a part from calling Yellow Pages and speaking to them and then getting mixed responses – which just makes me confused as to who is correct or not?
I am considering a private ruling ….
Any advice people??
Hi Quadrant!
How did u go with the sale of your unit?
Did you sell it privately/is it on the market?
Town Planner and Development Consultant
[email protected]Hi Marsmac
Scott No mates has hit the nail
I recommend you get an independent valuation done on the property that also considers the development potential of the site
Also, speak with Council as well to confirm the development potential
Second idea is, have you ever thought about undertaking the development project urself?
Cheers
Town Planner and Development Consultant
[email protected]Hi Scott no mates
I have a contact for an engineer who designs stormwater systems in Sydney
What type of stormwater system are you considering?
Feel free to email me
Cheers
i just realised there doesnt seem to be a private message function
if you like, email me on [email protected]
Cheers
Hi Marty_boyo
What advise has your design consultant/town planner given you? I'd be interested to see the letter etc to know on what basis/legislation Council is seeking compensation?
I'm sure there is something you can do – it just depends upon what Council is relying for the compensation
I am a qualified and experienced town planner and regularly help sort out issues with various Councils in NSW.
Feel free to Private message me and we can discuss further
Cheers
Thanks for your help people
Evolve – where are you based in Sydney? Send me a private message and we can discuss further
Thanks
Hi All
Merry Xmas!
Does anyone have any ideas/hints/suggestions for a tax laywer/accountant in Sydney's inner west???
Please help!
Thank you
Hi All
I have a similar question.
I have never previously built – but have a vague idea of the building process.
I am perplexed to the massive variations in quotes for building a duplex in Sydney – asked a builder mate and they quoted between 600-800k for a 2 storey brick veneer duplex with around and gross floor area of 250m2. This seems incredibly steep and not realsitic?
Then I see project-home builders quote for aorund 200k for a decent looking single storey house. Given a duplex would be a larger house (with double everything and common wall), I though the price would be closer to maybe 300k?
I understand that a builer as a principle contractor for a project would charge heaps more than say an owner/builder using a foreman to manage the difficult parts?
Is this right?
I'm just trying to crunch down the numbers on numerous projects I see – and when I hit the constructin cost area the numbers go through the roof?!?
Bluegrass- I'm not sure if those numbers would apply here in Sydney, but they seem much more reasonable.
Anyone builidng a duplex/similar development in Syd can give me some advice/costs prices?
I may consider studying for a builders license if that would make the process more feasible.
Any advice, would be much appreciated
Cheers
Hi
I'm interested in something similar and am based in Sydney.
I've got a few questions.
How do a legally start up a compnay (Pty Ltd) – does Accountants do this, or can I do it myself? Theres a lot of stuff on the net, but I'm not getting any real luck. Can anyone recommend someone to me in Sydney that sets up a company, e.g. financial advisor/accountant?Wardy – you say you have done many of these projects.
What type of loans did you utilise? As in did you use GVR loans/capitalised interest? etc What was the lending criteria invovled – as in for someone who is attempting their first project, and with the current economic situation, what would a lender (be it a bank or private lender) be looking at (criteria/asset wise) for lending. Do lenders provide loans based on Margin Development cost and business plan, in addition to personal assets(which i would rather avoid collateralising)
Can you recommend me any specific lenders/mortgage brokers etc?
Thanks
Feel free to private message me if you like
Cheers
Thanks Jazz77 for the comments!!!
So they are known as 'development loans' and funds are drawn down at various intervals of the process, with the repayment not due until the pre-determined interval.
Who did you use to finance your development project? Anyone that you can recommend in Aus/Syd? If you like, PM me and can have a more detailed discussion.
Also, what does 'pre sales' actually mean?
The ability to get the project through to approval stage without finance, may mean obtaining finance for the actual acquisition of the site via another loan (unless of course I already own it/under an existing loan etc), and then obtain a separate loan for the acutal development. Would this be feasible, or wouldn't i just be increasing my finance costs.
Would it be preferable to have the whole project (site acquisition, approval, construction, sell) under the one loan?
Thanks for your help Jazz!
Thanks Richard for your advice.
So there does exist loans with Groos Realisation or End Value payment upon completion? Do they provide same type of interest/fixed interest etc.
It must be hard to obtain finance for a developer just starting out. What do they assess your application on?
I will be in touch to find out more info.
Thanks heaps!
