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Welcome to Property Investment Lawyer website


What is Property Investing?

They say that there are two kinds of people– people who are property investors, and people who would like to become property investors!

Property Investors make money by collecting rent, by renovation and property development. Property Investors improve their properties, and develop their properties to boost cash flow. Property investors use joint ventures. Property investors use trusts as their preferred structures for asset protection and for tax efficiency.

In this Property Investment Lawyer website, we look at the legal side of property investment. We look at buying, at the landlord’s side of renting, at asset protection structures, at property joint ventures, at finance for property investment, at landlord insurance, at real estate taxes and at property development.

We at Cordato Partners Property Lawyers do conveyancing for Property Investors who love Investment Property. In our conveyancing practice, we do all kinds of real estate work and are equally good at purchases and sales, leases and financing, joint ventures and set up all kinds of property investment structures!

We love feedback and queries. Contact us via our website, or by telephone for a free 15 minute consultation – click the contact us page.


Why the family home is Australia’s favourite tax haven

For most Australians, the smartest investment decision of all is to buy a family home. One reason why is that when it comes to sell, no capital gains tax is payable on the sale proceeds.

Family homes have always been exempt from tax when they are sold. This exemption was both preserved and restricted when capital gains tax was introduced on 20 September 1985. The restrictions include: moving into the new home as soon as practicable, a time limit of six years after moving out (without buying a new home), and ownership in personal names (not in the name of a company or trust). If the restrictions are not observed, capital gains tax is payable.

Family homes used to be subject to inheritance taxes (death duties and estate duties) when the house was inherited. But inheritance taxes were abolished in the early 1980s and were not replaced except in one instance: If the family home is inherited and is not sold within 2 years of the date of death, then capital gains tax is payable on the increase in value from the date of death. The 2 year time limit does not apply (and no tax is payable) if the home becomes owner-occupied or if the home was purchased before 20 September 1985.

Family homes are exempt from land tax.

And when it comes to retirement, family homes have a special status for the age pension means test: they are not counted as an asset, no matter what their value.

Click here to find out more


Will interest-only loans soon become a thing of the past?


ASIC has taken its campaign against interest-only loans to a new level by taking legal proceedings against Westpac.

ASIC wants Westpac to pay a penalty for the interest-only loans it made to home-buyers between December 2011 and March 2015.

Click here to find out more

New laws for old for strata apartment owners

The NSW Government is introducing new strata laws will impact mainly on management of strata schemes but will also cover building defects in new buildings and renewal of strata schemes.

They will affect: * General Meetings * Strata Committees * Strata Managers * Strata Funds * Maintenance, repairs and renovation * Strata By-Laws *Building Defects in new strata schemes and * Redevelopment of existing strata schemes

Click here to find out more

This decade is all about income!

It seems that these days, everyone is looking for passive income & more time!

A lot of younger people are looking at setting up income streams to provide lifestyle choices and want to build wealth.

A lot of older people had great jobs and businesses and needed tax effective investments to reduce tax. But now they find that that their negatively geared properties are a negative cash flow trap they would rather not have.

For all, frugality, minimalism and positive cash flow are becoming the new cool!

This decade, property investment is returning to the basics – it’s all about income, not capital gains.


Video: Why this decade is all about income


What are the new renting options?

Is rentvesting or rent to own the best way to get into the housing market

Click here to find out more

 

Fixing water leaks in a strata apartment or villa can be tricky - not only to find the leak but also to convince the body corporate to fix the leak.

Click here to find out more

 

How Property Owners can walk away from sale options if the paperwork is not right

Are you a property owner who is wondering if there is any way to walk away from the sale option you agreed to and take back the property?

Click here for more information

 

How Airbnb is empowering Boutique Hotels and B&Bs to build their business

Click here to find out more

 

Are you thinking about using Airbnb to rent out your property?

Click here to find out more about the legalities.

 

The property buyers guide to Contract Deposits

How much is needed, does it need to be a full 10%, what ways are there to fund a deposit, and what happens to the deposit after it is paid?

Click here

 

The property buyers guide to Cooling Off

By law, home buyers and residential property investors have a 5 business day cooling off period to change their mind about buying the property. What is a cooling off period, and how does it work?

Click here

 

Without liability insurance, home owners are exposed to million dollar law suits

Click to find out more

Is now the right time to buy off-the-plan apartments in Sydney? Or do you wait until the property bubble bursts?

Will the new apartment market in Sydney continue to be a story of demand exceeding supply, or is it a property price bubble which is due to burst when a glut of new apartments comes on stream?

Follow this link to find out the right time to buy as-new units in Sydney at a 30% price discount.

 

How long do you have to make a building defects claim against the builder of strata apartments?

The new Strata Schemes laws in NSW will make it compulsory for a defects survey to be carried out within a year. This is a link to my article Don't wait until it's too late to make a Strata Scheme building defects claim.

 

The Landlord’s Guide to Renting – residential property

Renting advice for tenants / renters is plentiful.

Renting advice for landlords / owners is scarce.

In a tenant’s world, landlords need a good guide! The Landlord’s Guide to Renting is written for landlords - property owners - property investors, who need to know the ins and outs of the law of landlord and tenant, to maximise their rental property income.

Click for –

Part 1 – Repairs

Part 2 – Rent Increases

Part 3 – How to end a Lease

Part 4 – Quiet Enjoyment, Tenants breaking a lease

Part 5 – Rental Bond claims

Part 6 – Strata Renting

Part 7 – Landlord Insurance

Part 8 – Tax Guide for Rental Properties

And also click for a specialist article – Why landlords and tenants face special risks when leasing strata shops, offices and industrial premises

Click here to subscribe to the FREE Property Investment newsletter.


How to make settling your home unit purchase smoother

Click Here


When buying commercial property, you need to know if the price inclusive or exclusive of GST

Click Here


Joint Ventures for Property Investment

Joint Ventures are made for property investment! And they are easy to put together.

All that is needed is this information:

  • How do you put a joint venture together?
  • What do you need for a joint venture agreement?
  • What is the best legal structure for a joint venture?

Click here for the Investor’s Guide to Joint Ventures for Real Estate.

Did You know?

  • Joint Ventures flourished in London Coffee Houses in the 1750s
  • Lloyds of London Maritime Insurance began in Edward Lloyd’s Coffee House in 1688
  • Joint Ventures are used for trading enterprises and in mining, finance and real estate

Property Investment Structures

Do you use personal names or a property investment structure to buy property?

There is no black and white answer, because it depends on individual circumstances.

What is important – is it asset protection, is it tax efficiency, is it low cost or is it borrowing ability?

Click here for The Investor’s Guide to Buying Property – In whose name do you buy your next property?

Loan alert - Why are loan application forms such hard work?

Have you noticed how loan application forms are asking for more and more information? How employment, income, credit card, liabilities and assets need to be more fully disclosed? And how much paperwork such as payslips, tax returns, tax assessments, BAS Statements, bank statements, rent and loan statements is required?

The reason is that the regulatory authorities - in Australia being ASIC, are requiring lenders and loan brokers to comply with more rigorous responsible lending practices when assessing loan applications.

Lenders and loan brokers are responding with more detailed loan application forms, more supporting documentation, and more follow up. This is a summary of the legal requirements under the National Credit Act:

  • The lender must make reasonable inquiries about a customer's requirements and objectives
  • The lender must make reasonable inquiries about a customer's financial situation
  • The lender must take reasonable steps to verify the customer's financial situation
  • The lender must make a preliminary assessment
  • The lender must provide a credit guide

To find out more, click here


Why missing a credit card payment makes it hard to qualify for a property loan


The rules for credit data privacy have changed.
Lenders are now able to swap and share borrower credit histories.

And, instead of having to wait 60 days to mark a default on an individual credit file, just 14 days after a payment is due is now enough for a lender to mark a missed payment – and affect a credit rating. Just 14 days – in the USA it is 30 days!

We also cover credit files, credit scores and the essentials of qualifying for a property loan.

Click here for Why missing a credit card payment makes it harder to qualify for a property loan.

Do you need credit repair or debt consolidation? Is it best to use a firm or do it yourself?

Click to find out more

 

Will your swimming pool pass the pool safety tests under the new laws if you sell or lease?

Click to find out more



Tax issues for property investors

Tax must be factored in at each stage of a property transaction.

  • When buying, Stamp Duty and purchase costs are payable.
  • While holding the property, Income Tax and deductibility of Interest and other expenses, Depreciation and Land Tax are important.
  • When selling, Sale Costs and Capital Gains Tax are important.

Click here for a Tax Guide for Rental Properties.

Exactly what expenses can a property investor claim, particularly a small property investor?

A recent Administrative Appeals Tribunal decision really opens up the scope for small property investors to claim a wide range of tax deductions if they can demonstrate they are carrying on a business of letting rental properties.

What is the business of letting rental properties and what expenses are claimable as tax deductions if you are carrying on that business?

Click here for How do you tell if you are carrying on a rental property business?



Are you looking to sell your home or investment property?

10 Frequently Asked Legal Questions answered

Q 1 What legal paperwork do I need to have so that I can sell?

Q 2 What Certificates do I need to have for the Contract?

Q 3 How do I decide upon which real estate agent will do the best job?

Q 4 What do I look for before I sign a sales agency agreement?

Q 5 When does the Contract for Sale need to be prepared?

Q 6 What items need to be covered in the Contract for Sale?

Q 7 What are cooling off rights and how do they affect a Contract for Sale?

Q 8 What tax traps do I need to keep in mind when selling a property?

Q 9 What needs to be done to discharge the mortgage?

Q 10 Do I need to be present at the settlement?


How short stay, Airbnb style accommodation combines rental returns and capital gains

We all like property where we enjoy both a strong cash flow and high capital gains.

What defeats most people is that cash flow tends to be poor in areas of high capital gains, and cash flow tends to strong in areas of low capital gains.

To give an example, rental returns of about 3% are common in city beach suburbs such as Bondi, Bronte and Coogee which are areas of high capital growth, and about 8% in regional NSW towns such as Tamworth, Dubbo and Albury, which have low capital growth.

The answer is not to avoid the areas of poor cash flow, but to work out a way to boost cash flow in the high capital gains areas.

Airbnb style short stay accommodation provides one answer – in tourist areas such as near city beaches, or areas with good transport links to a business hub, a property owner can boost yields by 50% to 100%.

And yet, you enjoy the same capital gain as your next door neighbour who doesn’t use Airbnb.

For more information, click here

 

Who are Cordato Partners, Property Investment Lawyers?

This website has been produced by Cordato Partners Lawyers, as part of its Property Law practice.

We specialise in conveyancing – the sale and purchase of properties for owner occupancy and for investment, vendor finance or seller finance, mortgages, caveats, strata and land subdivisions, commercial leases, joint ventures and syndicates, mortgage and property disputes, and property litigation in NSW.

Cordato Partners, Lawyers also has Business Law, Travel & Tourism Law, and Wills & Estates practices which deal with transactions and court work.

Contact us by email – info@propertyinvestmentlawyer.com.au  or by phone (02) 8297 5600. Our office address is Level 5, 49 York Street, Sydney NSW 2000 (near Wynyard Station).

Disclaimer: Because this website contains advice of a general nature, it is not intended to be relied upon for any specific situation. For specific situations professional advice should be obtained. Liability limited by a scheme approved under Professional Standards Legislation.



© Copyright 2017 Cordato Partners