Does 285m2 qualify under your council’s LEP for separate titling? You will find that unless there is a specific exemption or mention, the minimum block size may be 400m2 and you will be well short which is why the developer went the way that they did.
So the deals are inflated by $20k in addition to the money you’re paying to a biased buyer’s agent who is already in bed with a builder and possibly the land owner. Not independent advice IMHO.
Go to an independent BA who will provide options which meet your requirements.
You can borrow to purchase but cannot borrow to renovate (make sure that you have sufficient funds to complete the works without tying up all of your capital).
Will you being converting to residential (restrictions on what you can do in super) or will your business be renting it from the SMSF. Any rent paid will go to the fund (less any tax payable).
$40k is much less than what is required to be effective for a SMSF, you won’t get a land tax exemption either.
After reading the rent review clause, go to abs.gov.au and get the CPI table download. This is an Excel file.
Use the all groups Adelaide
June 2019 ÷ June 2016 × current rent.
113.7 / 107.5 = 1.0576744186 x rent
You will also need to do a back rent calculation for the period after the rent review to current (even if this is prior to your ownership, it is in arrears).
By the sound of it you intend to run the business of a builder, you will need a builders licence. Owner builders licences are restricted to PPOR not flipping.
Stamp duty (at market value for the % that you are buying), legal fees (you, sister & mother all require advice), provision for capital gains tax (payable by your sister), discharge of mortgage.
It’s a bit late now. You should have raised this matter with your building & pest inspector prior to settlement and also with your solicitor. The vendor has got the cash and is well on the way to Bermuda.
@cubster_2 – have you checked whether he holds a builder’s licence (for the type of work that he’ll be undertaking)? Reference check?
Has he taken out home warranty insurance? If not you may have little recourse through fair trading/VCat other than stopping them undertaking more work elsewhere.
Scott No Mates.
Scott No Mates.
