Total Members: 153,581

shangrila00

  • shangrila00 replied to the topic Tricks of the trade? in the forum Help Needed! 11 years ago

    Hi DWolfe,I'm already having problems with my builder, and building hasn't even commenced yet. What I was informed sounds really convenient for someone in my situation, but I don't know how realistic it is (it came from someone in the industry, though).A problem with the slab, for instance, will not be able to be fixed once it's completed, so…[Read more]

  • Sandrat101, sorry to hear about your heartache too. It's definitely frustrating, and very time consuming. It shouldn't be this hard. We'll be looking at getting someone out to the property to inspect and see if they can give us advice on what WILL be approved, or we'll sit down with someone and discuss the issues. Going back and forth through our…[Read more]

  • Have taken all of your comments on board, so thank you all for that. I think a one-on-one meeting with a council planner/officer looking after our application will be the way to go, as they keep contradicting their requirements with us. I.e. If we move one of the houses, then we'll satisfy A, B & C requirement, but not D & E. But if we move it…[Read more]

  • Make sure council knows you by your first name! Familiarise yourself with their rules and regulations, and make sure the plans you send to them are both plans you're happy with and plans they'll approve. Their website should have the necessary documents. Read them! Get a town planner/consultant, so they can give you some pointers. I'm in a similar…[Read more]

  • Hi Andrew, That's an absurd story! I thought our situation was bad, but there's always someone out there slightly worse off than you think you are. I wonder why councils are so difficult? Considering people are actually doing them a good deed – creating multiple lots and doubling, tripling, etc. the council rates they get from what was once…[Read more]

  • Thanks for the replies!It's interesting to find out the different strategies people employ to secure their IP's. Also even more interesting when you consider it from a vendor's point of view, especially if the vendor's an investor, and he's trying to maximise the return he gets on his IP. In that instance I'm not so sure I'll fall for the "That's…[Read more]

  • Hi Tracey B,Thanks for your input as well. You're right with what you've said, but the contract's already been signed (unfortunately for us now). I suspect it's more the individual we're dealing with rather than the actual company he's working for, but I'm also trying to deal with council members directly, and not just take the builder's word for…[Read more]

  • The contract's been signed, so we can't just up and leave. The final plans are still up in the air, as council still need to OK them. This is what's annoying – will council be living in the houses or the owners?!Builder's saying "I told you so" that plans are subject to change pending council approval. In other words – listen to council so your…[Read more]

  • The delays are because of council. First they said this, then they're saying that. What they're saying now is not what they brought up previously, etc. Bit of a mess unfortunately. Other reason for the delays is the builder keeps changing the plans to suit them, and we're not happy.Anyone willing to share their experiences?

  • Hi dougiebuilder,It's 4 months since the signing of the contract, soil reports, etc. So while there is some progress, the actual building is yet to commence.One property will be an IP, the other will be a PPOR. We want to get both of them right. We're also considering the plans from a purchaser's perspective – will a new buyer be willing to pay…[Read more]

  • The ATO rep I spoke to told me to be careful which order I do things in. I'm not sure why, as he didn't elaborate further, but I was left with the impression that that will have an impact on how my tax is determined – whether it's a property development business "event" I'm doing, or just with the intention to build and rent it out.…

  • Thanks Mr5o1!I thought things wouldn't be all that great, but I think my main saving grace here is that the IP will be held for >12 months, so at least the 50% CGT exemption rule will apply.I'm still confused as to why it matters which order I do things in – subdivide and demolish, or demolish and subdivide. Any ideas?

  • I was told the cost base of it all would be valued from the time the PPOR was purchased. This means they'll backdate the valuation to the purchase date, halve it, and find out how much half of the land is worth (the one where the IP will be built). Only the portion of the land used for the construction of the PPOR will be CGT exempt. Might have to…[Read more]

  • Yes, I will eventually be provided with a cost base of the land (backdated to when the PPOR was purchased), but the thing from the ATO that threw me off was that the second portion of the subdivided land (the one where the IP will be built) will be subject to CGT from the time the PPOR was purchased. If there was no IP or second property on the…[Read more]

  • Thanks Terryw! Very much appreciated.

  • Subdivision will occur first, building, then new CT's. It won't be any different to most of the other developments out there. I guess the issue would be how to structure the loans (one against the IP only for both IP and PPR costs, or one against each property), so we can put money aside for tax purposes first, then worry about paying off the PPR…[Read more]

  • Terryw, thanks for the info! You've given me a different way of looking at this.From a loan point of view, though, I personally thought it'd be safer to just offer the IP as security on the loan and keep the PPR separate (not mortgaged), as it's already paid off to begin with (it's not just a vacant block of land, there is a property there at the…[Read more]

  • Terryw, yes, you're right, but I'm not sure how this helps in this case? We don't want to take out another loan against the equity in the PPR to pay for CGT.

  • Duckster,Yes, the intention is to pay off the entire loan (both for the IP and PPR) by selling the IP only and keeping the PPR. The PPR on the land at the moment is fully paid off, and we don't intend on obtaining a loan for that house only, separate to the IP. It's still not clear to me, after having paid off the loan (which will be secured…[Read more]

  • Simple. Thanks.And if it's given away? (Makes for a great birthday present!)

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shangrila00

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