[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 17, 2003 - 5:44 am

Hi abbee

Happy to help if you would care to email me.

Cheers Richard
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November 17, 2003 - 5:31 am

Hi crashy

I presume you are referring to a Brissie property.

Depending on the zoning (i assume it is not Res A) you would need a full DA / BA and the a builder to perform the work.

After that you would need to lodge the title into the Dept of NR and get separate title to the unit before you can sell it.

Make sure that the underneath complies with the Building Act or otherwise you may have to raise the house. The reason why a lot of houses have the downstairs as a garage / storage is that they don’t comply.

If you did the work and kept it and it didnt comply you might have a real issue with Public Idemnity if there was a fire and you werent not covered.

Email me if you want further details.

Cheers Richard
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http://www.fhog.com.au

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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 17, 2003 - 4:17 am

Hi Jarvis

We purchase and develop LMR / RB3 / RB4 sites in Brisbane for a living and don’t think you will find it as easy as you think.

Stock availability is getting short at the right price. Why don’t you pick a particular area or suburb and really research it and try and find the small lot subdivisions or LMR sites that the larger players think to much effort.

If you want any more info please feel free to email me.

Cheers Richard
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 14, 2003 - 8:13 am

If you sell the property within 12 months and 1 day from the date of the original contract you will be liable for CGT.

I am not sure where in Qld you are referring to but why not consider building on the property and gearing up with the increase in equity you will now have to buy your first few positive cash flow properties.

At least with a house on the land you will have income and something to depreciate.

If you need anything else email me.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 14, 2003 - 8:05 am

Wayne

No worries.

Phew all this exercising on a Friday afternoon.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 14, 2003 - 8:04 am

Creach

1) If you dont have title you won’t be able to borrow. This may not be an issue as $25 – $30K isnt much.

2) If you don’t have title and you are doing work to the property you are the one who will have to chase up your profit. What happens if the Vendor decides not sell after all but just rent the property out again and he can’t pay you back.

Cheers Richard
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November 14, 2003 - 7:59 am

Wayne

You got it.

Put Option only exersizable at Expiry.
Call Option exersizable at any time.

And yes if Party 2 fails to notify or does not bother to notify Party 1 then Party 1 exercizes.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 14, 2003 - 6:29 am

Wayne

It is standard practise in development site acquisitions to incorporate both a Put & Call Option into the same contract.

Usually Party 1 is the owner and grants Party 2 an option to purchase the Property (Call Option). At the same time Party 2 grants Party 1 and option to sell the Property (Put Option).

The Put Option is usually exercised by Party 1 if the Option agreement has not been terminated and Party 2 the Buyer has failed to exercise the Call.

Sound complex enough for ya. We have always found when dealing with large dollar values of real estate its always best to legally protect yourself. Also the Put Option avoids double stamp duty in Qld when it is time to enter the Contract.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 14, 2003 - 5:42 am

Sunshine

You are bang on it is from the date of the Contract.

Cheers Richard
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November 14, 2003 - 12:16 am

Simon

HQ is based in Milton.

Cheers Richard
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November 13, 2003 - 1:24 pm

fullout

We use Put & Call Options on all of our development site acquisitions.

Whilst over the year we now prepare our own i agree with Mel if in doubt get legal advice.

Last think you want is to find that the Agreement becomes the subject of litigiation and you loose any potential profit as your Option document is not legally binding.

Cheers Richard
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November 13, 2003 - 1:18 pm

Uncivilised

We have wrapped many many properties in Rockhampton. Feel free to email me if you want any advice on the area.

Cheers Richard
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November 13, 2003 - 8:10 am

557799

Bear in mind that you are not living in the property and only looking at the property as a vehicle to generate income.

As long as the building & pest inspection reports appear fine and you are happy with the location then you don’t needd to actually inspect the property.

In ending remember when you do pop upto Qld on holiday ensure that you visit the property so that you can log the visit and cliam the cost on your next tax return

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 13, 2003 - 8:05 am

Depends on the lender and the percentage being lent but most will certainly want to come inside.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 12, 2003 - 2:47 pm

Guys

Please note that you need to hold the IP for 12 months and 1 day and not 12 months to benefit from the halving of CGT.

I have seen client’s come a cropper for the sake of 24 hours. Let me assure you that the ATO will not miscalculate the time the asset has been held if they audit you.

Cheers Richard
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 12, 2003 - 2:41 pm

Jason

Think Terry has expanded on what i was going to say. All I would say is higher the rate of return higher the risk.

Yields on several blue chip stocks would not be to far away from giving you a positive cash flow especially with the benefit of franking credits and in my opinion would be lot less riskier than unsecured deposit notes.

Cheers Richard
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There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 12, 2003 - 2:30 pm

One solution is look inter state.

But don’t tell everyone as we have enough of ya coming North to the Sunshine State. As an example 50% of properties in Stanthorpe are now owned by owners living away from Stanthorpe. In 2001 it was 11%.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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November 12, 2003 - 2:26 pm

Posted twice in excitement i think that means its 2-1 on

Cheers Richard
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 12, 2003 - 2:26 pm

Posted twice in excitement i think that means its 2-1 on

Cheers Richard
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There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

November 12, 2003 - 2:25 pm

Bill

You name the odds i will accept them.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Richard Taylor | Australia's leading private lender