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Hi Dave
PM me the address and I will have a look and see what I think can be done.
If you want to rent it and the house out separately your chances of getting an enforcement notice from council stopping you doing that, even if your building was approved is almost negligble.
If you want to get retrospective approval for a secondary dwelling, can be very doable. There are a whole load of variables.
If you are happy for me to strip out the identifying information, I will respond through the forum so that others can see if they can get something out of it.
D
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Depends on area it is in.
Non-complying use under Brisbane City Plan and they are running a huge operation on this at present.
regards
D
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If up to 5 unrelated people come together to enter into a single tenancy agreement with a landlord, that is a house. If there are separate agreements, that is excluded from definition as a house, more likely multi-unit dwelling.
see ADD Design v Brisbane City Council 2012
Qld Court of appeal, discusses well, case was about houses with 10 rooms rented out separately, but same principles apply.
D
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Your list of nots includes most 1 into 2 subdivision sites in Brisbane.
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Hi
Many people make great short term gains subdividing, gives a good kick start to your equity.
regards
D
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UPDATE
The New Town Plan is not going to help people with this, in fact it is even worse.
Any development for a secondary dwelling is:
(a) a maximum of 80m2 in gross floor area;
(b) located within 20m of the dwelling house;
(c) occupied by one or more members of the same household as the dwelling house.
Household is defined as
An individual or a group of two or more related or unrelated people who reside in the dwelling, with the common intention to live together on a long-term basis and who make common provision for food or other essentials for living. The term does not include individuals living in rooming accommodation.
It seems fairly clear that BCC's intention is to not allow separate renting of secondary dwellings, even if the primary dwelling is owner occupier.
Darryl
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If it rents well and you are concerned with the tax bill, you could always sell it to an entity controlled by you.
You have had no CG so CGT is not an issue, but would have to pay stamp duty and legals on purchase in the new entity.
$400k property would pay $16k in stampduty, and your new entity would borrow as much as possible and you would have an injection of cash and entity would have tax deductible loan.
However, as it has not had any CG, it may be better to sell it and buy a new one in an entity.
The worst scenario would be selling it and not replacing it with some sort of investment.
You have time, research all possible scenarios and that will help you make the best decision
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From a Planning Law Perspective, a premises is defined by its use in most states.
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Hi Ashley
Looks Great.
Will be a great resource for many people on here,
Cheers
Darryl
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I always found it hard to find great people with a decent knowledge of property investment, development etc, whether they be brokers or accountants or lawyers etc.
That is before I joined a property forum back in 2004, and just like this one, full of good sources.
Richard will sort you out, once he recovers from the icy blasts of the home country anyway.
Good luck
regards
Darryl
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Hi
This is a great place to start. One advantage about your situation is that it might not make sense to buy immediately, which many do without taking the time to educate themselves and get setup.
While paying down your debt and getting ready to buy, I would suggest learn as much as you can about the following
-different types of property, areas that you want to purchase in and how to identify a good investment property.
-structuring both entity structuring and finance
-Self Managed Super Fund, although not large, your employer contributions would be and that combined with the 90k in the account may allow you to setup an SMSF and buy a property in it
-your strategy, what you want to acheive, what your risk profile is, how do you think you might acheive what you want to, do some goal setting etc
good luck and great spot you live by the way. I had a weekender in Burleigh for years, problem was that with my kids getting older and doing more and more on weekends I just wasn't using it, so had to flick it.
regards
Darryl
D
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That should mean
2 Year lease with 2 year option, followed by another 2 year option. Its a 6 year lease if it is not optional.
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That should mean
2 Year lease with 2 year option, followed by another 2 year option. Its a 6 year lease if it is not optional.
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SMSF is a highly regulated area, buying deeds off online providers is a scary process. If an accountant, lawyer or someone else stuffs up, you have their insurance to help. If you do it yourself you are on your own.
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Hi Ross
There are multiple possible structures, the state the property is in will affect choice of structure also but a Unit Trust is often a good vehicle in these situations.
If a Unit Trust does turn out to suit best, I would strongly recommend a Unit Purchase Agreement, this is an agreement signed by all the parties and outlines all of the what if's and how to's for when issues arise. There are various other versions for other structures.
Again, depending on the state, it may prove beneficial for the units to be purchased by discretionary trusts. Land tax can be a big influence on this decision, especially if property is in NSW.
regards
D
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Depends where you are
Brisbane
$1500 per sqm
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BE VERY VERY Careful in Qld, especially Brisbane City Council Area. I am currently dealing with a large number of Show Cause and Enforcement Notices for what BCC considers illegal uses relating to dual living arrangements
There was a Qld Court of Appeal Ruling which came through in 2012 (ADD Design v BCC). The Court stated that the Definition of a House that the Planning and Environment Court has used for years, although convenient and somewhat practical, is wrong.
The Key part of the judgment is in relation to the term "discrete" individuals or groups or households. The judgement found that a house can not be used by any of these discrete categories. What does that mean, leasing a house and grannyflat out separately or leasing out a house as dual living areas, changes the definition of the use from House to multi-unit dwelling. If you site is zoned low density residential, you will require 3000sqm of site to be able to do this.
I can not see the BCC letting this go, they are trawling real estate listings at present for references to dual living and duplex and going from there.
Sorry to be a bearer of bad news. If you have a dual living, duplex or granny flat arrangement in BCC at present, send an email to my planning address and I will see what I can find out for you.
regards
Darryl
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Flexiblity is the key
Many put the negatively geared property in the high income earners name. Which is great, unless you get capital growth and when you go to sell it, CGT is at top taxable rate.
Discretionary trusts are bad for Land Tax in some states (Hello NSW)
I love it when other people's clients have stuff in personal names. When I am putting together a commercial litigation case ,there are often multiple parties that have done wrong or partners etc. We will sue all parties. It is not really our job to apportion blame, we are out to get damages for our clients and don't really care who pays. But it is very reassuring when one of the parties that have all these properties in their personal names that comes up on our searches. It is possible some of the other parties have $2 companies and no assets, so a judgement against them is worthless, but the smart cookies who have used their own names for all this residential stuff, they look like having to cough up. There can be findings that the parties were "jointly and severally liable", like is the case for partners. Each of you are up for the whole debt/judgement if the other party was a $2 company and you were in your own name, you pay the whole amount.
You do not know what you are going to be doing in 10 years time, if you are holding property in your own name or do business in your own name, it is risky. In 10 years time it will likely still be very expensive to get your property out of your name and into a trust.
You need specific advice, from someone in your own state or who practices accross borders in that area.
good luck
D
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Hi
Agreed
Find lawyer in your state as 1st port of call, make sure the asset protection and the entry, exit and what if it all goes bad stuff is going to be sorted. IF they work with good accountant even better
regards
D
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My only comment is, that if you are confident of the DA, why not sell them now. Will need a solicitor to draw up a OTP, proposed lot or whatever they call those contracts in SA
D
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