I'd agree with Terry, the vendor has signed the DA, the DA relates to a specific site and cannot be separated  from that site. As you have done the hard work, it is your risk that if you can't settle you don't get any benefit (unless you have a claw-back clause

If you have subdivided your block, you have created a new block and cgt can be assessed on the new block (you will need to engage a valuer to determine how much each block is worth, PPOR & new block). You will also have to pay gst (or have it included in the price of the new block).

What you have interpreted is basically correct. If a new house (of the same quality & size as the existing house on the block of land) would cost $250k to build, the old house is about 25 years old, so would have 25 years of depreciation at 2.5% (about $156k),So if the above is correct, then if the land is worth $150k, the existing (old) house…[Read more]

Didn't the infamous Paul Keating use that one back in the '90's?

I know that this is heresy but if reasonable capital gains have been made on one or two of the properties, a tactic which could be used it to (dare I say it) sell one of these properties in order to pay down debt and get the interest beast under control. The thing to be aware of is timing, in order to qualify for a 50% discount on CGT you must…[Read more]

10 year tax deferred bonds?

Look at the purchase price of the old house, estimate the size, age & level of current maintenance/condition. Get your Rawlinsons out, work out what a similar house of the same size would cost (including landscaping etc), deduct x years of depreciation @2.5% and that would be close to the value of the land (roughly). Add back the cost to build the…[Read more]

Technically, yes – it is the contract price ie the price which has been declared on the contract of sale. If there are mitigating circumstances, like the property has been transacted subject to the exercise of an option/property settlement etc then the full value of the property would not have been reported.

The only cash flow in a ng property is out of your pocket, as Terry points out you will have to weigh up all options & scenarios

This is where engaging with one of the better real estate agents at a very early stage can be beneficial. They can add value with regard to knowing what the market wants (ie what they can sell easily) whether this be 2 beds, 3 beds, 3 + study, single/double garage or carports, auto openers, security features etc. If you hit the market with the…[Read more]

Land size, land size, land size. That is the main constraint. Many councils willnot allow subdivision below x m2 so often you will not have the option of creating separate titles for each block. However, if you are clued up, you may be able to achieve a SEPP5 (or equiv in Victoria) allowing you to create 3 or more over 55's units on a block which…[Read more]

It would be extremely rare to find a lease which would allow subletting without reference to the Lessor. In the commercial sense, the lessor may also need to seek mortgagee consent to the subletting as well.

As above, seek specialist advice. In the first instance you will need to convince your parent even before going to the solicitor. Unfortunately, wills can be changed, even whilst on your deathbed, so you will need to have the right protections put in place well before this eventuality. It also presupposes that your parent will be gifting their…[Read more]

You would probably need to arrange a boundary definition survey, contours/vegetation (trees) as well as services identification & location of adjoining buildings (neighbours houses/structures). In the first instance, it requires the surveyor to put pegs in each corner of the site, the second picks up on any fall/slope/natural features on the l…[Read more]

Not surprising at all really. I've been looking at several 4B around Lane Cove/Lower North Shore. 3 Bed you're dreaming for sub $1m regardless (almost) of the conditions.

A few basic questions:Which area is it in? (state, town & council area)?What is the zoning? (From the council map)What is the minimum area for the type of development under the zoning?Is there a minimum frontage required?Do you intend holding & build, achieving DA & selling or sell without DA?In the case of a) & b) – are you funding the…[Read more]

The development plan is there to control excessive development – it defines what you can or can't do. If you go outside of those constraints it will be rejected. If however you skillfully interpret these guidelines then you can maximise their requirements eg carport extending out to the street boundary providing it does not contact the house…[Read more]

Generally speaking, the more that you can get onto a site the better ie if you can get 2 t/hses for say $270k, you will be getting your return of say 5% rent on ($300K+land) whereas if you only built one house you'd only get your 5% on ($200k+land). You spread your risk over 2 (or more) houses etc. Sure, council will put their hand in your pocket…[Read more]

Why pay for something you don't need? When the time comes for IP#2, use your line of credit or equity in P#1 to fund the deposit.

If you can afford to buy a property for someone else, why bother with rental assistance? Technically you can spend your money however you like however you will be required to explain how you have emptied your bank account and this will affect your ability to receive entitlements for 5 odd years (same as a pensioner having restrictions on getting…[Read more]