"buy, renovate, sell"
- Thread starter Jude H
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From: Keith J
According to Dec/Jan API mag Paul Eslick did it 6 times in 11 months! I don't remember reading about that particular problem though.
From: Keith J
According to Dec/Jan API mag Paul Eslick did it 6 times in 11 months! I don't remember reading about that particular problem though.
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From: The Wife
~Pitfalls~
Under estimating renovation/cost required!!
Buying it cause its a 'great' renovator, but a terrible area , no one wants to buy it of you, so your stuck with it.
Doing the work yourself(can be a pitfall for some)
Buying it and someone from the heritage listing people pops up and says "YOUR HERITAGE LISTED!!"
Paying a contractor up front.
Paying a contractor, and THEN checking the workmanship.
Employing a non licensed contractor( when they stuff up, they really stuff up)
Employing a family friend to do some of the work.
I'm sure there are lots more!
Do yourself a favour and do a Geoff Doidge workshop,
or corner Michael Croft, and bleed him for information, I havent told Michael he is coming to the "Big BBQ" yet, but I'm sure he will,the brains of his outfit, his lovely wife, will come along for a natter, so I'm sure he will tag along as well, catch him there!
)
PS: Pitfalls....I have done ALL of the above.DOH!
From: The Wife
~Pitfalls~
Under estimating renovation/cost required!!
Buying it cause its a 'great' renovator, but a terrible area , no one wants to buy it of you, so your stuck with it.
Doing the work yourself(can be a pitfall for some)
Buying it and someone from the heritage listing people pops up and says "YOUR HERITAGE LISTED!!"
Paying a contractor up front.
Paying a contractor, and THEN checking the workmanship.
Employing a non licensed contractor( when they stuff up, they really stuff up)
Employing a family friend to do some of the work.
I'm sure there are lots more!
Do yourself a favour and do a Geoff Doidge workshop,
or corner Michael Croft, and bleed him for information, I havent told Michael he is coming to the "Big BBQ" yet, but I'm sure he will,the brains of his outfit, his lovely wife, will come along for a natter, so I'm sure he will tag along as well, catch him there!
)PS: Pitfalls....I have done ALL of the above.DOH!
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Reply: 2.1
From: Steve Goodman
Hi Michael!
You should know better than that! No matter how bad the market is, never give it away for free - on either count! ;-)
From: Steve Goodman
Hi Michael!
You should know better than that! No matter how bad the market is, never give it away for free - on either count! ;-)
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Reply: 3
From: Michael Yardney
Hi Jude
I'm not an accountant, we should get a response from one who reads the forum, but I guess you are asking the question with regard to the tax implications.
As far as I know, the tax man decides how you are taxed partly on your motives for going into the project.
If you bought a property to live in and renovated it and then sold it as your primary residence you would not pay capital gains tax. Lots of people do this over and over.
If you bought the property to renovate and sell, even if you only did this once, you are taxed on this profit as your motivation in buying the property was to renovate and make a profit.
Do it more than once and it would be hard not to be classed as a trader.
But what's wrong with that. You can now claim lots of tax benefits because property is your business.
Have a great weekend....
Michael Yardney Metropole Properties
From: Michael Yardney
Hi Jude
I'm not an accountant, we should get a response from one who reads the forum, but I guess you are asking the question with regard to the tax implications.
As far as I know, the tax man decides how you are taxed partly on your motives for going into the project.
If you bought a property to live in and renovated it and then sold it as your primary residence you would not pay capital gains tax. Lots of people do this over and over.
If you bought the property to renovate and sell, even if you only did this once, you are taxed on this profit as your motivation in buying the property was to renovate and make a profit.
Do it more than once and it would be hard not to be classed as a trader.
But what's wrong with that. You can now claim lots of tax benefits because property is your business.
Have a great weekend....
Michael Yardney Metropole Properties
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