澳洲Australia property Subdivding in the ACT | Sydney


在澳大利亚 Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int


Acey has been looking at coucil requirements on subdivding in Canberra, and he's found something odd.

Apparently, whenever you change the title on a property, the governemtn takes 50% of the captail gain (when yoju realise it) as a title change fee.

Take that with 50% CGT and developers are left with zilch!

There has gotta be something else here, otherwise there'd be no developers in Canberra at all!

If you've changed the title in Canberra, or have some adivse (other than the obvious not selling) - help?

Jas  

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Hi Jas

Here is some info on the "Change of use" Charge.

http://www.palm.act.gov.au/plandev/land_leasing/info/charge.htm

For years it was known as Betterment Tax. Some times it varied between 50% to 75 % (and also 100%. thanks to the Greens).

In my previous life, I have changed the lease purpose clause of a number of blocks in Canberra and yes you can still make good money. It's all in the maths.

Cheers


Brinkdude  

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How's the after value calucalated? Is it like CGT where you can take costs into account?

Jas  

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Hi Jas,

As a developer in these parts I'll give you the drum - no charge.

Firstly developers avoid change of use if at all possible, if not we are off to the AAT armed with our respective before and after valuations to argue the amount of cap gain. This is usually less than PALM would like ;)

Most (all?) small scale developers don't subdivide in the ACT they strata title. They purchase a suitable block within the parameters of DV200 and do a dual occ which they then unit title. PALM will not allow a standard res block to be subdivided, only strata/unit titled. When you unit title a block and there is no lease purpose clause change involved, there are no betterment charges :D

regards, MC  

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Hi Michael,

'In your humble opinion' can you see good opportunities in developing in CBR at the moment ?. Do you think land is overvalued ?

There seems to be quite a bit of land (in the Weston Creek Areas) with good attributes (location, views etc). DO you see any 'upside' to developing in these areas ?

Cheers  

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Jas, Michael, this is the latest planning change on dual occ
This operates from June 16th

New clause on subdivision:

The new clause will close the loophole that currently exists which has often allowed leases for dual occupancy and other forms of multi-unit housing to be subdivided under the Unit Titles Act 2001 without being subject to change of use charge (CUC). The
new clause reads as follows:

'A subdivision of a lease under the Unit Titles Act 2001 may only be approved where the lease expressly provides for the number of units or dwellings provided for in the proposed subdivision.'

This clause would mean that a 'residential purposes only' lease could only be unit-titled if it was first varied to expressly specify the number of dwellings permitted. For example, before
a dual occupancy development could be unit-titled, the lease would need to be varied to specify that it expressly provided for two dwellings. The implication of this is that intensification of development on ‘residential purposes only’ leases would no longer be able to avoid paying CUC except where they did not propose to subdivide.

Because the new policies relating to dual occupancy represent a significant departure from the proposed prohibition on subdivision contained in the original version of DV 200, it is proposed that the 5% rule be retained until Variation No 200 is finalised and ecomes part of the Territory Plan. The existing plot ratio (35%) and minimum block size (800m2) controls will be also retained until the Variation becomes part of the Territory Plan. However, on
commencement of Variation No 200 under the Land Act, the new sliding scale plot ratio control would take over and the 5% rule would cease to apply.


Jas, this means that, given the scenario discussed with me yesterday, CUC will apply.

Michael, the developer's CUC holiday is over.....(sadly, cos I had plans to do dual occ a property myself)
:(  

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Thanks for all your help guys!

Jas  

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