Ah well - hubby also works in Onesteel ... quite high up the chain at Waratah and deals with the issues of the steel quality and overseas clients ... also spent a significant amount of time time (approx 10+) years flying down, living at, Whyalla trying to resolve the concentrator installation and subsequent problems.
How to go around this situation
- Thread starter sanjayag
- Start date
Two opposing views from equally reliable resources..
For me though...... the pro's simply don't negate the con's so I'll pass..
I doubt we'll ever agree on that one Sanjayag but I can understand why you're so passionate given you are a resident and any changes will effect you directly. But for me... I"ll stick with my major city based commercial for the moment and be happy at that.
All the best to you and your friend.
Cheers
B.D.
For me though...... the pro's simply don't negate the con's so I'll pass..
I doubt we'll ever agree on that one Sanjayag but I can understand why you're so passionate given you are a resident and any changes will effect you directly. But for me... I"ll stick with my major city based commercial for the moment and be happy at that.
All the best to you and your friend.
Cheers
B.D.
Back with the questions
Hi all,
I just searched this thread (started by me few weeks back).
So, after due deligence, my friend is going to buy this commercial property for his dine-in restaurant.
PP is $260+GST.
Question 1:
The broker has indicated, If my friend buys the property in his name and the lease to his business, he can show earning from the property and hence can get a higher LVR (may be 75-80%). Can he do that? Is it a good suggestion?
Question2:
Will he get the GST back, if he buys in his own name and lease to his business? I think he & his wife are the sole trader with business name which is registered for GST. But I doubt he or/and his wife are themselves registered for GST.
Question3:
The conveyancer said stamp duty will be applied at PP+GST and not at only PP. Is that correct? Double dipping by government?
Thanks
Sanjay
Hi all,
I just searched this thread (started by me few weeks back).
So, after due deligence, my friend is going to buy this commercial property for his dine-in restaurant.
PP is $260+GST.
Question 1:
The broker has indicated, If my friend buys the property in his name and the lease to his business, he can show earning from the property and hence can get a higher LVR (may be 75-80%). Can he do that? Is it a good suggestion?
Question2:
Will he get the GST back, if he buys in his own name and lease to his business? I think he & his wife are the sole trader with business name which is registered for GST. But I doubt he or/and his wife are themselves registered for GST.
Question3:
The conveyancer said stamp duty will be applied at PP+GST and not at only PP. Is that correct? Double dipping by government?
Thanks
Sanjay
Not sure about question 2 or 3 but lenders do not like lending on commercial properties where the tenant is the landlord. They reduce the LVR on these type of deals.
Oh and 80% LVR on a prime commercial property is pie-in-the-sky unless you want to pay double digit interest rates. And even less likely if the tenant is the landlord. Unless of course you don't tell them...
Oh and 80% LVR on a prime commercial property is pie-in-the-sky unless you want to pay double digit interest rates. And even less likely if the tenant is the landlord. Unless of course you don't tell them...
Hi all,
I just searched this thread (started by me few weeks back).
So, after due diligence, my friend is going to buy this commercial property for his dine-in restaurant.
PP is $260+GST.
Question 1:
The broker has indicated, If my friend buys the property in his name and the lease to his business, he can show earning from the property and hence can get a higher LVR (may be 75-80%). Can he do that? Is it a good suggestion?
I supposed it's possible however as Aaron has stated, if it's uncovered you'll either see is lowered LVR or no loan at all (depending on the lender) as most financial institutions see their risk as doubling in that scenario.
Also bear in mind the bank will wish to see a copy of the lease and may wake up to your illusion once they see the lease beginning on the same day of settlement.
In that scenario, they may rescind their offer and your mate will be left hunting around for finance at the last minute and the potential of losing his deposit.
Question2:
Will he get the GST back, if he buys in his own name and lease to his business? I think he & his wife are the sole trader with business name which is registered for GST. But I doubt he or/and his wife are themselves registered for GST.
In VIC, if it's a "going concern", meaning there is an existing lease in place, no GST is applicable. If however it's empty, then GST is applicable and you will need to apply back to the Govt to have it refunded in your next BAS and if you need to submit a BAS, you'll need an ABN. If it's the later, then prepare for the the following:
* You'll most likely be audited by the ATO as they hate seeing large sums of money being returning without a normal history. It won't be a problem but be prepared to wear the cost from your accountant when it happens.
* To register for an ABN, you'll need to have a paper trail with names attached which could lead to complications regarding your scenario in Question 1.
Muddy waters indeed....
Question3:
The conveyancer said stamp duty will be applied at PP+GST and not at only PP. Is that correct? Double dipping by government?\
I also suspect this may be correct as I vaguely recall complaining about this on our last purchase.
Horrible to think that the govt is charging taxes on taxes too but it does happen...
Thanks
Sanjay
..............
Hi all,
My friend bought this property. Actually, his accountant set an investment trust (friend's wife is director and he is nominee) and the trust bought the property financed by CBA at 70%LVR. Trust is leasing the property to the business owned by my friend and his wife.
Currently being renovated.
My friend bought this property. Actually, his accountant set an investment trust (friend's wife is director and he is nominee) and the trust bought the property financed by CBA at 70%LVR. Trust is leasing the property to the business owned by my friend and his wife.
Currently being renovated.
still going very good
I was reading this thread again and want to report progress:
1. The restaurant is going good.
2. Apart from my friend and his wife, they have 3 more employees.
3. They have got visa approval for another chef to come from India.
4. The total cost of buying plus renovations went to around $400K but business is thriving with around 50% increase in turnover in comarison to his old takeaway shop.
5. Got a liquor lisence....planning for wine promotion.
6. The land block has got vacant portion in the back of this property, he is going to build a caretaker's residence there. Got the planning consent from council and going thru' building approval process.
The outcome:
1. He created more direct and indirect jobs with this venture.
2. the residents are happy to have a good facility.
3. The Govt. is getting more taxes from his income.
I was reading this thread again and want to report progress:
1. The restaurant is going good.
2. Apart from my friend and his wife, they have 3 more employees.
3. They have got visa approval for another chef to come from India.
4. The total cost of buying plus renovations went to around $400K but business is thriving with around 50% increase in turnover in comarison to his old takeaway shop.
5. Got a liquor lisence....planning for wine promotion.
6. The land block has got vacant portion in the back of this property, he is going to build a caretaker's residence there. Got the planning consent from council and going thru' building approval process.
The outcome:
1. He created more direct and indirect jobs with this venture.
2. the residents are happy to have a good facility.
3. The Govt. is getting more taxes from his income.
