The 'steps' of a purchase.

[WebBoard]

From: Justin Conaghan


Hello everyone,
I was wondering if anyone might have the time to point out to me,the stages in buying a property. I'm not sure at what stage you actually pay to obtain a building/pest inspection etc. On that note, would building/pest inspection companies be doing multiple reports on the one property for all of the interested parties(and make a packet in the process), or is there some way to obtain a previous report.
I was led to believe that none of these-any costs will be tax deductible until the time i actually start receiving rent from an IP (I don't have one yet). Is this true?

Regards,
Justin.

 

[WebBoard]

Reply: 1
From: Guy Wood


Justin,
You can ask the selling agent if he knows of anyone else who has had a report done on the property. You may get a no, but if yes you can offer 1/2 price for a photocopy & save yourself a day or two ass well as some $.
Guy

 

[WebBoard]

Reply: 1.1
From: Sergey Golovin


You might be right there Justin,
You might not get anything (tax deductions) until property is yours.

Yes you do need all that info for your initial research, to buy the property you really need and why would you spend all those money if you won’t get penny back?
May be the reason is to stop/prevent people spend money left right and centre and be it more careful?

I am not sure about tax deductions, but it could be the case.
So, spend as little as you can before you purchased that property.

Better ask your accountant as Michael suggested.

Here is bit more info (very general, but..):

http://www.moneymanager.com.au/mortgages/buying/index.html

Serge.

 

[DaleGG]

Reply: 2
From: Dale Gatherum-Goss


Hi

Unfortunately, the cost of a building inspection report is not tax deductible as it forms part of the cost of buying the property - not holding the property.

However, if you operate a business in IP and you do not go ahead with the purchase of an IP that you have paid for an inspection report then the cost of that report will be deductible.

I'm sorry to bear bad news.

I hope that this helps

Dale

 

[Rolf Latham]

Reply: 3
From: Rolf Latham


Hi Justin

Step 1

Crawl before you walk.

Get your finance bedded down first )

Ta

Rolf

 

[michaelg]

Reply: 3.1
From: Michael G


Hi,

Believe ME, listen to Rolf - not fun having to pay in cash for a property, while you wait for a loan tends to slow your wealth creation down somewhat

Michael