If the original owners were not subdividing then they may not have had the same restrictions imposed as you are getting as your request is different. For example, I am currently building a duplex behind an existing house, and subdividing them off. As such, I need to have a 6m driveway to the rear duplex and subsequently have to move the power pole…[Read more]

Please PM me the details. I have a JV interested in moving into industrial deals,Mick

Sorry to point out the obvious, but in 3.5 years when you sell it for $400K, you will in theory be losing money as it will surely be worth more than that. Apart from being benevolent to your Father, is there any reason you would do this? You need not worry about CGT as it is your PPOR and you wouldnt pay it anyway if that was the motivation for…[Read more]

You also need to check out the insurance. It falls under a different catagory to normal rentals. Also double check that it is listed as such a rental with council. There are different fire codes etc that need to be addressed if there is more than a certain number of unrelated persons in the house, ie less of a straight residential and more towards…[Read more]

also look up margin scheme for GST. As for holding, it is my understanding that if you sell a new building in under 5 years then GST is payable even if it is rented out, but check with your accountant and if you get a different answer, please post it.Mick

Unfortunately, I think it was up to you to determine what was and wasnt up to scratch. Try checking your contract and see if it states if all works were approved, if so you may have recourse, if not then…………….What was the advice of your sol/convey.at the time?Good luckkMick

ditto, except I add the lower bowen basin in QLD. Deffinitely +ve cashflow from day 1 with potential to improve with a cosmetic reno. Prices have not yet reached those of the upper Bowen basin and rents are onthe increase as the new mine goes aheadMick

Speak to your accountant about the margin scheme

Double check on the sale of the property. As they would then have cash in their account (or elsewhere) it may be considered "income" and impact their pension. My MIL recieved a compo payout ($70K) and her pension was restricted ($70K divided by pension rate = number of years she was considered to not require the pension). As a suggestion, call up…[Read more]

Hey duckster,Why the need to go to a police station or is it a victorian thing? I have bought and sold many in NSW and QLD and have never needed to do that. Just curious.Mick

I assume that it is in a residential area? If so, I find it odd that the council has allowed a block to be sub divided off and not provide services and road access. Nevertheless, if this is the case and it is reflected in the cost of the land, then a trip to the council will give you the costs you are after. They would be refered to as headworks…[Read more]

They look pretty neat!!!! Any idea on cost for them?

Its all about picking your market. The block of land I purchased in Novemeber for 90K has just had an offer of $150K, so I wouldnt go global on the doom and gloom front just yet. As usual, there is money to be made by those who get off their butts and look for it.

Write out your offer and include:1. price and terms (ie you ask $250K I offer $255K with a 8 month settlement or $$260K for a 12 month settlement)2. Conditions (ie, vendor to allow access to block for survey, soil test etc, vendor to agree to sign council paperwork as required)You will need to see it from their point of view as well, and may need…[Read more]

I would reread your info. If you are carrying out a "buisiness" of realestate then you are considered trading and as such not entitled to the 50% discount. Well, at least that is my understanding.Mick

The advice of our accountant when asking the same question was that there is only a tax deduction AFTER a property is purchased. That is you cant go looking and claim the trip. The exception is if it is recognised that this is your JOB (and then you start getting into problems with trying to retain the CGT reduction).But hey, despite there being…[Read more]

It is of use when running a short to medium term development project to allow the project to be self sufficient whilst waiting to be completed and settlements to occur. Of course the obvious problem is if they dont sell. All comes down to the numbers and what risk you (and the beank) are prepared to wear.Mick

Hi Michael,The lease that the current tenant is on stays put under the current arrangements, your name is merely changed in the bond documents, and you notify them on however you decide to collect the rent (using a managing agent or yourself)A couple of questions, if it is tenanted at above market rates and this tenant does not renew the lease,…[Read more]

You will find as soon as you mention your plans, you will be bombarded with well intentioned though unsolicitored advice. It goes with the territory. It will be a matter of tuning out or just not starting the conversation inthe first place. If there is a sound basis for the comments then ask them to explain further but if it is an armchair…[Read more]

Give the ATO a call and ask them to send out the latest CGT booklet. it has a lot of examples init and will help you see al the different scenarios. It is free. You can search it also on line, but the booklet is easy to flick trough.Tammy