Seeking advice

[YayYay]

Hi there,

My first post, so apologies if any errors.

I would really like to purchase a 49ac rural property in NSW that is currently being operated as a holiday letting. However, I have some concerns regarding council approvals and the like.

The property consists of an original (apparently approved) late 70's timber 2 storey bush house (habitable, but in need of repairs), and a mid 2000's 3 bedroom house, which is not approved (due to dual occupancy v's land size restrictions) but built to standards. Apparently council is well aware of the houses existence, as they have checked on the associated septic works.

The newer house is the one that has been successfully rented out for holiday use over the past 5 years, with an associated website and listing on popular booking site. The property is insured under a 'farm policy' with the newer house classed as a 'shed'. The property is also classed as a bushfire and flood zone.

My plans would be to renovate the original house and adjoining studio, and holiday let all 3 buildings, and building a managers house on a separate clearing on the block.

My concerns are, are the current approval and insurance arrangements sufficient and/or kosher and there ramifications in worst case scenario.
Also what is the process/likelihood to get approval for what I wish to do. Finally what chance of getting finance for property under its current set up?

Cheers
Simon

 

[fernfurn]

my understanding is that if it is registered as a business you would have to pay gst on the purchase price. worth checking out

 

[kum yin lau]

Hi, gst not required if it's a going concern

ky

 

[Paul@PFI]

The going concern basis would need to address that the same business is operated before and after settlement. That isnt always that simple and needs advice. After that go for broke.

 

[Scott_Snap]

What is the Zoning of the block ? Over 25 Acres your number of lenders is limited and they will want a 70-80 % LVR max. based on their valuation not what the current owner or you think it is worth. How will they see the "shed " don't know ? You need to get written confirmation from the council saying they will accept what is there as a non conforming right. It all smells a bit funky to me. We all know insurance companies take money on anything but paying out is a different issue.

 

[YayYay]

Thanks Snap, I am well versed on insurance co's reluctance to pay out... hence that funky smell, I too sense...I will look into written confirm from council, and chase up an independent valuation......
Cheers for your reply....very much appreciated

 

[YayYay]

Cheers fernfurn....It is being sold as a rural prop. the accom buss is just a bonus ... would that make a difference ??