First time ever in Australia - Tax deductions PRE settlement
- Thread starter Tony Vippond
- Start date
Keeping you informed
Thanks to all of you who have contacted us on this. As mentioned to those interstate, the Deed of Undertaking will be sent to your solicitors directly.
Since the original post, we have signed contracts for 15 of the townhouses. We have just received written notice from the developer that there will be an $8,000 across the board price increase once 6 more contracts become unconditional.
If any of you are interested, please be quick. This deal rocks.
Cheers
Dave
Thanks to all of you who have contacted us on this. As mentioned to those interstate, the Deed of Undertaking will be sent to your solicitors directly.
Since the original post, we have signed contracts for 15 of the townhouses. We have just received written notice from the developer that there will be an $8,000 across the board price increase once 6 more contracts become unconditional.
If any of you are interested, please be quick. This deal rocks.
Cheers
Dave
Les,
Thanks for your question. How are you, by the way? Long time no see....
As with many projects of this magnitude, the developer needs a certain number of unconditional sales before the project funding is released by the lender. Typically, as in this case, the developer will sell the proerties for a lesser price to get to this point quicker. I have just received notice that the price increase has taken effect as from this morning. Upon our insistance, the rise is only $8,000...not too bad considering the original prices were valued by Landmark White as being 7% below market value.
Cheers
Dave
Thanks for your question. How are you, by the way? Long time no see....
As with many projects of this magnitude, the developer needs a certain number of unconditional sales before the project funding is released by the lender. Typically, as in this case, the developer will sell the proerties for a lesser price to get to this point quicker. I have just received notice that the price increase has taken effect as from this morning. Upon our insistance, the rise is only $8,000...not too bad considering the original prices were valued by Landmark White as being 7% below market value.
Cheers
Dave
Tibor,
The project is sold out anyway. Pity you can't see past the 'sales garbage', which was basically answers to questions asked, to see what was one of the best property investments opportunities available in Melbourne.
If you think you can assess an investment in one minute, you really are a moron...
Dave
The project is sold out anyway. Pity you can't see past the 'sales garbage', which was basically answers to questions asked, to see what was one of the best property investments opportunities available in Melbourne.
If you think you can assess an investment in one minute, you really are a moron...
Dave
Healthy scepticism?? view the properties on mason st newport www.realestate.com.au with castran gilbert $100K+ and these properties are 6 months from completion because of builder delays, sit on your hands and go numb. the reason i didnt reply because it had sold immediately.
Hi All
I have just read this thread and, call me cynical, but I come to only one conclusion. Free Advertising for the Agency.
I mean why not put all the detail here?
They say they don’t have the time but they had to the time to post?
They know the forum and therefore also know we here don’t buy on promises, we want hard numbers!
Also why post to potentially 4000+ viewers across Australia when:
1. They have no time to explain here but happy to field 4000 calls personally
2. The deal is SO great it sold out in a week. Why don’t they have 34 loyal investors on the books to offer first? If my agent had a GREAT deal and told me after telling 4000 strangers I would be p*ssed.
It all don’t add it. Someone more cynical could call it Bait and Switch advertising.
Peter 147
PS The flame at Tibor holds no pain.
Anyone with experience needs only a minute to identify a good deal.
If the agents have any property, not contaminated, not infested, great tenants in a good area in melb showing 15% return after costs tell me now and I do it in less than 1 minute.
Happy to be called a Moron is that’s the deal. I will even change my name here to Moron
PPS How about some genuine posting and stop insulting our intelligence.
I have just read this thread and, call me cynical, but I come to only one conclusion. Free Advertising for the Agency.
I mean why not put all the detail here?
They say they don’t have the time but they had to the time to post?
They know the forum and therefore also know we here don’t buy on promises, we want hard numbers!
Also why post to potentially 4000+ viewers across Australia when:
1. They have no time to explain here but happy to field 4000 calls personally
2. The deal is SO great it sold out in a week. Why don’t they have 34 loyal investors on the books to offer first? If my agent had a GREAT deal and told me after telling 4000 strangers I would be p*ssed.
It all don’t add it. Someone more cynical could call it Bait and Switch advertising.
Peter 147
PS The flame at Tibor holds no pain.
Anyone with experience needs only a minute to identify a good deal.
If the agents have any property, not contaminated, not infested, great tenants in a good area in melb showing 15% return after costs tell me now and I do it in less than 1 minute.
Happy to be called a Moron is that’s the deal. I will even change my name here to Moron
PPS How about some genuine posting and stop insulting our intelligence.
Hi all,
I'm with Peter here.
It is almost 2 years since Tony's first post when he had 34 wonderful bargins for sale. He comes back today and they are STILL for sale.
Just because you ask for a higher price does NOT mean the value has increased.
Oh and thanks for your valuable input into the forum, 2 posts in 2 years both advertisements.
bye
I'm with Peter here.
It is almost 2 years since Tony's first post when he had 34 wonderful bargins for sale. He comes back today and they are STILL for sale.
Just because you ask for a higher price does NOT mean the value has increased.
Oh and thanks for your valuable input into the forum, 2 posts in 2 years both advertisements.
bye
1. The suburb is in the inner west, 8km out. Those of you who are familiar with me and my views on the Melbourne market will know which areas we believe are relatively undervalued and are therefore targeting.
2. If you have equity in property, $1000 will secure a townhouse for you. This is not with a deposit bond. In fact, deposit bonds are not allowed as a deposit. If you don¡¦t have equity, you will need the full 10% in cash. No bonds or bank guarantees.
3. Regarding my comment re Price Waterhouse Coopers. Of course there is a list of qualifications. This isn¦t a loaf of bread we¦re selling. A quote from the in-writing confirmation we have from PWC on 20/2/03 includes, "In our opinion, potential purchasers who qualify as investors under Australian Taxation Law will be able to claim a tax deduction for the interest incurred during the construction period" This is provided certain documents are correctly executed (which we make available to a client's solicitor). And, they do recommend independent taxation advice.
4. Interest incurred during construction will be approximately $21,500. The amount you can claim back obviously depends on your taxable income. Eg, it¦s around $6500 if you pay 30 cents in the dollar.
5. The financial arrangement is structured between the developer, AMP, the purchaser and their solicitor and executed by contracts and a Deed of Undertaking. This Deed is made available to a purchaser's solicitor when they proceed. And yes, contracts can be signed subject to a satisfactory assessment of the document by your representative.
6. There is no rental guarantee (which is preferable) on these townhouses. The expected yields are 5-5.5%. There is no oversupply, as the population is growing and the most common property type is detached houses. Couples with children are the most common household type.
hi dave,
as a general rule,what other procedures are in place for determining the ture market value on these propertries..
willair..
2. If you have equity in property, $1000 will secure a townhouse for you. This is not with a deposit bond. In fact, deposit bonds are not allowed as a deposit. If you don¡¦t have equity, you will need the full 10% in cash. No bonds or bank guarantees.
3. Regarding my comment re Price Waterhouse Coopers. Of course there is a list of qualifications. This isn¦t a loaf of bread we¦re selling. A quote from the in-writing confirmation we have from PWC on 20/2/03 includes, "In our opinion, potential purchasers who qualify as investors under Australian Taxation Law will be able to claim a tax deduction for the interest incurred during the construction period" This is provided certain documents are correctly executed (which we make available to a client's solicitor). And, they do recommend independent taxation advice.
4. Interest incurred during construction will be approximately $21,500. The amount you can claim back obviously depends on your taxable income. Eg, it¦s around $6500 if you pay 30 cents in the dollar.
5. The financial arrangement is structured between the developer, AMP, the purchaser and their solicitor and executed by contracts and a Deed of Undertaking. This Deed is made available to a purchaser's solicitor when they proceed. And yes, contracts can be signed subject to a satisfactory assessment of the document by your representative.
6. There is no rental guarantee (which is preferable) on these townhouses. The expected yields are 5-5.5%. There is no oversupply, as the population is growing and the most common property type is detached houses. Couples with children are the most common household type.
hi dave,
as a general rule,what other procedures are in place for determining the ture market value on these propertries..
willair..
Any investment advertised on the basis of "tax benefits" is something to run away from.
The tax benefits are designed to attract inexperienced investors, and to mask the poor prospects of the investment.
There has been many cases where the advertised tax benefits have been disallowed by the ATO and the poor "investor" is left with an expensive learning experience.
It may be just my opinion, but I would encourage people to be extremely careful with "investments" of this type.
Cheers,
The tax benefits are designed to attract inexperienced investors, and to mask the poor prospects of the investment.
There has been many cases where the advertised tax benefits have been disallowed by the ATO and the poor "investor" is left with an expensive learning experience.
It may be just my opinion, but I would encourage people to be extremely careful with "investments" of this type.
Cheers,
