Organising an ABN For Purchasing a Property From a Business

In certain situations, it’s extremely important to secure a tax bill in relation to the sale of property. For instance, somebody could be buying a commercial building for $1 million subject to existing tenancies. The contract states that the sales are not taxable supply since the vendor is neither registered not required to register the GST. They are not listed for GST sometimes and the buyer is in the same situation like a vandal and does not have to be, even after they have bought the building. The rental price of the building is significantly less than the GST tolerance of $75,000. If you’re within this situation, what would normally happen is the fact that your accountant might explain that you could be registering when you purchase the building, since you be holding to the enterprise of rental, but that you consider you’ll be better off not joining as the expense of paying GST to the rent would be higher than the main benefit of input tax breaks to the acquisition of the building.

You may get a call in the tax office about a random audit. One of many requirements of the tax office has is that details of an exchange of a commercial building. Now you’d be confused because there would be no need for the bill can be a sale wasn’t susceptible to GST. Your accountant might say, and truly point out that you need to register for an ABN because of the withholding tax issue even though that it’s nothing to do with GST.

In Australia, taxation government regulation under section 12 190 supplies in short that when payment is perfect for property or products or services supplied by the class or furtherance of the company continued in Australia by the supplier, individual of the present must hold an amount until the supplier estimates the ABN or tax file number. If you are in a situation because you may be compelled to pay the withholding tax to the purchase price which could be a catastrophic imposition on you that is obviously not attractive. Fortunately, you must even be able to check out the abbey and utilising an ABN, but it takes a quick thinking; you must try this under pressure. Watching these basic facts reaps reward of not coming across these seemingly simple problems later on when it become a huge problem.

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Off Plan Property: Apartments Off the Plan Can Be a Good Purchase

Real Estate today is volatile. The financial crisis has impacted buyers and sellers, there’s no doubt about it. One avenue some people choose to explore is that of buying property off the plan.

So what does off the plan mean? Basically, when you buy off the plan, you are buying the property before it has been built. This is a very attractive method of purchasing apartments, in particular, because there is often a good deal of money to be saved. Developers often market their properties this way because it provides the funds necessary to do the construction. Also, many banks won’t loan money to developers without at least 70% of the available units pre-sold.

Everyone wants a good deal so how this becomes a good deal for the apartment buyer is that the purchase is often discounted. Assuming the property market is stable or grows, this often means that the value of your off the plan apartment is worth more at completion than you paid for it. You have to admit, this is a good thing. Also, you usually get some say as to the fittings like the bathroom floor tiles and can speak to the kitchen designers in Melbourne to discuss colours which you wouldn’t have if you waited to make the purchase after the building was completed.

On the downside is that the actual construction can take a few years to complete depending on the size of the project. It’s also possible that the market value of your apartment could even go down. But, again, the upside is that you are buying at a cheaper price than you normally would and you also have several years to continue saving for the day your beautiful, luxury apartment is finished and the closing process begins.

Apartments are usually a better investment when buying off the plan. And, if the apartment you buy is on the water, or has a water view, they traditionally maintain very good value.

There are always risks when buying real estate and this is no different. Even if you bought a house today, there is no guarantee that it will hold its value or increase in value in the coming years. Historically, it will improve but that is not a guarantee.

Off the plan, property has a lot to offer and the benefits can outweigh the risks but that is for you to decide. Have your solicitor review any contracts before you sign anything. Off the plan, apartments are a great way to leverage yourself into the Real Estate market. Investigate your options and then make your move.

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