Building a house in WA

I intend to build a house in WA to live in it for a while and then use it as an investment property to rent and then sell.

I will probably be taking a job overseas in 18 months or so as my company wants to send me as an expat so I will have to leave the house here to rent it.

A few questions:

I am considering a strata titled property. It is not common walls or anything just independent houses on lots. Is it better to buy into a strata or a green title in my case?

Does buying into a strata have any advantages?

Will it affect the resale value if I am forced to sell?

Thanks
 
Are you talking survey strata or built strata? For all intents and purposes survey strata and green title are very similar and in most suburbs you won't find values being affected. What area and price point are you referring to?

Built strata are also more accepted nowadays, I did a couple of villas in maylands under that arrangement and no one had am issue with it.
 
My ppor was a similar situation you're describing. It was a vacant strata titled block that I bought and then built on. The other residents there and I all chose our own builders and own house designs ourselves. The only common property is the road (culdesac) that runs between.

I dont think it had any negative effect when the bank revalued it for my equity release. They went by comparable sales in terms of block size, bedrooms, bathrooms, age, etc etc

I doubt type of title makes much difference. As Sanj says might depend on suburb or price point.
 
I will probably be taking a job overseas in 18 months or so as my company wants to send me as an expat so I will have to leave the house here to rent it.

Pirlo
Ignoring your actual question, and taking the thread slightly off topic, if you are taking an expatriate role overseas have you thought about your Australian taxes?

The new rules on being a non-resident can make life tough. Its worth while getting your ducks in a row now, by talking to a foreign tax expert up front.
I didn't do this when the rules changed and had to go suffer through a tax audit. It cost me about $10k for the ATO to decide that I was in actual fact paying the correct taxes.

Just a thought

Blacky
 
Thanks for that Blacky.

I will have to look into that as well. The country I will probably be working in is tax free if that makes any difference.
 
Thanks for that Blacky.

I will have to look into that as well. The country I will probably be working in is tax free if that makes any difference.

Unfortunately it doesn't. Being considered a non resident for tax purposes is not a simple task, I'd definitely follow blackys excellent advice here and get some advice upfront
 
Thanks for that Blacky.

I will have to look into that as well. The country I will probably be working in is tax free if that makes any difference.

As Sanj said - paying 0% overseas means squat if you are still paying 30/40/50% back here in Australia.

Becoming non-resident of Australia for tax purposes is not as simple as leaving. Or spending xx number of days outside of Australia. In fact - you can spend 365days of the year outside Australia and still be considered resident.
Being audited by the tax office is not fun.

PM if you want a recommendation for a good international accountant.

Blacky
 
Back
Top