Tax of­fice hits high end sales

The Weekend Post - Real Estate - - Front Page -

NEG­A­TIVE gear­ing has been hit­ting the head­lines through­out this elec­tion cam­paign while a far more in­ter­est­ing real es­tate change has been set into play by the Aus­tralian Tax­a­tion Of­fice. Any­one who sells a prop­erty for $2 mil­lion or more will be re­quired to pro­vide a clear­ance cer­tifi­cate to the buyer from the tax of­fice ev­i­denc­ing they are an Aus­tralian res­i­dent for tax pur­poses. These changes come into force from 1 July 2016. The pur­pose is to en­sure for­eign tax pay­ers meet their tax obli­ga­tions, and buy­ers must with­hold 10 per cent of the pur­chase price – or an agreed ad­justed amount – that would be re­mit­ted to the ATO. There aren’t many res­i­den­tial sales in our re­gion above $2 mil­lion dol­lars but that will not stop this tax­a­tion change af­fect­ing our lo­cal mar­ket. This ATO-en­forced price ceil­ing may in fact cre­ate a very strong eco­nomic rea­son for for­eign buy­ers to look be­yond the cap­i­tal cities to our af­ford­able re­gional mar­kets with strong uni­ver­si­ties, tourism and busi­ness to in­vest in. We can only hope the dra­co­nian methods of the ATO will ul­ti­mately ben­e­fit the FNQ prop­erty mar­ket by means of more ac­tiv­ity from the for­eign in­vest­ment mar­ket and those look­ing to buy and sell real es­tate with­out be­ing au­dited. Ray Mur­phy, gen­eral man­ager, RE/MAX Cairns BUY a block be­fore get­ting car­ried away with a dream home design, says one of Cairns’ top build­ing ex­perts.

From small win­dows and ren­der only used on a prop­erty’s fa­cade to poor light­ing and an un­us­able front en­trance – these are the design mis­takes which can be avoided.

Dixon Homes man­ag­ing di­rec­tor An­drew Thomas said there were a few sim­ple tips to keep in mind when de­cid­ing on a home design.

“In­ex­pe­ri­enced peo­ple tend to pick a house often be­fore they have their land,” he said.

“They end up be­ing re­ally at­tached to the design and i t doesn’t nec­es­sary suit the land.

“As a spec ( spec ula­tive) builder, I look at the land and design the house to suit the land, tak­ing into ac­count the slope, the as­pect and the drive­way.”

Mr Thomas said an­other tip was build­ing a prop­erty which could add long-term value.

“A lot of peo­ple have a ten­dency to put their own re­quire­ments into a home.

“You do what you want for your­self but it often makes it dif­fi­cult to sell.

“Some have dis­pro­por­tion­ate rooms – too big or small rel­a­tive to the house, and the num­ber of rooms – large three bed­rooms in­stead of hav­ing a fourbed­room home.”

He said bold colours were also a com­mon design flaw.

“Colour schemes are one of the big­gest mis­takes.

“Look at the first im­pres­sion of the home – ex­te­rior colours that peo­ple have strong views on or strong colours can be a de­ter- DRONES might be tak­ing to the skies to get ae­rial shots of real es­tate and apps are in­creas­ingly be­ing used to house­hunt, rent be­fore peo­ple even look inside the home.

“Nat­u­ral light­ing is very im­por­tant, the traps some peo­ple make (in­clude) rooms that are too big and not enough nat­u­ral light gets in.

“An­other one is max­imis­ing the frontage of the home on the block, so it makes it look more im­pos­ing.”

While design trends are con­stantly evolv­ing, Mr Thomas said it was often best to stick with neu­tral and well-thought out fea­tures.

“There are al­ways new trends in kitchens and bath­rooms,” he said. Try and steer away from any­thing bold … be­cause it can often date the house. Use clas­sic colours and tiles.” but the most im­por­tant hu­man el­e­ment of prop­erty is tipped to re­main un­changed.

Ac­cord­ing to one of Aus­tralia’s lead­ing in­ter­net en­trepreneurs Daniel Pe­tre, ro­bots will be do­ing most of the jobs humans do now, in the fu­ture.

Mr Pe­tre – who once worked with Mi­crosoft founder Bill Gates – spoke to al­most 4000 agents at the re­cent Aus­tralasian Real Es­tate Con­fer­ence on the Gold Coast and pre­dicted 52 per cent of cur­rent jobs (mostly i n re­tail) would dis­ap­pear be­cause of ad­vances in ro­bots. But de­spite changes in tech­nol­ogy, the real es­tate in­dus­try might be one sec­tor to buck the trend.

“There will al­ways be peo­ple re­quired in real es­tate,” Mr Pe­tre said.

“I’m not sug­gest­ing agents won’t be there; they will be there. But price es­ti­ma­tion will al­ways be done bet­ter by soft­ware than any hu­man be­ing.

“Lo­cal data is pro­vided far bet­ter by soft­ware than in­di­vid­u­als,” he added.

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