Browse Forums Real Estate 1 Jan 18, 2016 3:17 am So, hubby and I are in the middle of a new house build in the southern suburbs of Perth. We have had a few problems like things being stolen from our site (we are only up to the bricking stage!!) and we are reading about a LOT of crime happening in the area we are building in. Things like repeated break ins, home damage, animals baited, property stolen (including an entire front yard of fake grass!), cars broken into and stolen, needles and dirty nappies left at parks etc. This is on a daily basis! We are now NOT very keen to move into the area. We are trying to find some information online about if we can sell the house once it is completed (without having to move in). We would be happy just to sell it for what it cost us (not for profit, just to sell it so we don't have to move in!). Has anyone finished a build and sold it after handover? What is involved? Do we have to pay CGT? Would it be worth keeping and renting out instead? Any ideas or feedback is very welcome. We are so confused and don't know how to handle the situation if we eventually decide we don't want to move in anymore We're gutted as it is our dream house... but seems to definitely not be our dream location Thanks! 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 2Jan 18, 2016 5:50 am Hi Sorry to hear about your situation. It must be so disappointing. You probably need to get advice from your accountant. As their are number of things you need to consider. - Have you rented the property out (if there was an old house on the block) - Have you claimed or currently claiming the property to be an investment property and claim any interest deductions in your tax returns? - How long have you held the property for? - Do you currently rent or own another property you live in (i.e. Do you have another house that you claim as primary place of residence) Generally if you buy own an investment property and sell (being newly built is irrelevant) then you need to pay CGT at your highest marginal tax rate. If you have owned the property for over 12months you get 50% exemption on CGT. However you don't pay any tax on sale of your primary place of residence. Good luck viewtopic.php?t=78985 Re: Wanting to sell house after handover (new build) - ADVIC 3Jan 18, 2016 9:10 am You won't be paying any CGT unless you make a profit. So the main thing is you need to have receipts for all the costs involved in the project. Given it hasn't been available for rental, I expect things like interest and rates payments haven't been tax-deductible, and so instead will form part of the cost base for CGT calculations. So try to add up all your costs, including purchase and sale costs, and see how it compares to the resale market in the area. If it's looking like you would make a substantial profit, then it may be worth considering moving in and making it your principal place of residence, or look at what happens if you offer it for rent, but more likely you'd be best to just pay a bit of CGT if you happen to turn a profit in it. You may want to consider hiring some furniture to at least partially furnish the house to sell it. Renting is an option, but you'll have to consider what the tenants would likely be like in that area. Then if you are renting a house out, you need to consider the capital growth in the area, and guess whether it's an area that's likely to go up in price with time Re: Wanting to sell house after handover (new build) - ADVIC 4Jan 18, 2016 10:26 am WhatOneJohn says is correct regarding CGT. There should not be any issue selling the house without moving into it. I have seen this done many times, especially when people knock down and put two or 3 houses on the block. Did you get any FHOG for the house, if so, that will more than likely have implications attached to it. Cheers Mark Re: Wanting to sell house after handover (new build) - ADVIC 5Jan 18, 2016 12:56 pm Yeah I am pretty certain we won't sell for a profit at all... as it was our 'dream house' we added lots of extras and I would be surprised if we can sell for what we paid for it. An no, no FHOG attached as this is our second build. Thanks for all your advice! We will monitor the area for the rest of the build but yeah sadly we are quite hesitant to move into an area with high crime happening 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 6Jan 18, 2016 1:12 pm If you do make a loss, I think there'd have to be a good case that it's a capital loss for the purposes of taxation, which you can then use to offset any capital gains that you might make in that year, or carried forward. Re: Wanting to sell house after handover (new build) - ADVIC 7Jan 18, 2016 1:30 pm Thats an interesting thought oneJohn... I didn't know that would even be a thing... 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 9Jan 19, 2016 9:32 am We are building in Wellard. Im in a few Facebook groups and pretty much every day there is posts of some sort of crime. 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 10Jan 19, 2016 10:55 am There is crime every day in every suburb. Things move on and people move out. There are listings that show the number of burglaries per 1000 dwellings and you will see that no-one is spared. I think that as the area matures it also has an impact. Best is not to allow yourself to be taken. Scan through the other suburbs and you will see that none of them are spared. Re: Wanting to sell house after handover (new build) - ADVIC 11Jan 19, 2016 11:06 am I agree with Aussiemark - no point in making a loss on your dream home on the chance something *might* happen. if you are in an estate, crime stats are also trumped up as the include theft from building sites. Get a good alarm, install visible CCTV, have a secure fence, and for gods sake park your car in the garage instead of using it for storage. You'll be fine. I also joined my areas local Resident FB groups when I moved in. Crime that was reported to those was avoidable with a bit of common sense. Peoples cars were broken into because they wanted to park on the nature strip, expensive trees left in movable posts in the front yard, stuff was stolen from garages that were left open and forgotten about and burglaries happened to houses whose occupants were not smart enough to not advertise to the entire neighbourhood that they were going on a holiday interstate. When providing some advice to those people that perhaps they should park in garages, not leave expensive trees in pots in the front yard and plant them in the ground, keep their garages closed and pack the car for a family holiday in the garage, I was met with cries of "why should I, I have a right to feel safe in my own neighbourhood!". people still hold beliefs around how things should be without applying some common sense in how to prevent these unfortunate events occurring. I left those groups not long after, people will do what people do and then complain about the consequences Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: Wanting to sell house after handover (new build) - ADVIC 12Jan 19, 2016 1:28 pm Ponzu you are correct... and it is that thinking which keeps us going back and forth so much! I am hoping that it will just be 'teething' problems being a new estate and that it slows/stops once its established. Yes we will definitely have our cars secured and an alarm. Have considered the cctv. Thanks for everyones advice! Much appreciated! 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 13Jan 19, 2016 3:54 pm It's even possible you'll never be a victim of crime in your neighbourhood, after all it doesn't happen to everybody, right? Just relax and enjoy your dream home. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: Wanting to sell house after handover (new build) - ADVIC 14Jan 20, 2016 10:07 pm Hi Sparkysgirl, I'm a long time village person! Don't be put off by what you read on FB. Especially the Wellard Whinge (Wellard Village Chat). I've lived here ages and we've never had major issue - when we lived on a cottage block with a rear carport, my car was rifled through once, we think someone was jumping fences, but nothing was taken. One of the things about Wellard is that it has a really strong community - a lot of people know a lot of people, and every little thing gets reported on FB. I don't know if there actually is much more crime than other areas, it just is talked about more. We also have a great resident's association in the Village, we have been lucky to have financial backing from PEET for community start ups, and they have engaged Creating Communities to coordinate events for the Village people. I know that some people who have been broken into seemed to think that a flimsy flyscreen has the same level protection as a security screen door, or they've left the back door unlocked all night, or the car out the front with a wallet visible in it. If you exercise common sense, you'll likely be fine. What stage of the Village are you in by the way? We are in (the infamous) stage 26A, towards the back of the Village near Somerford Park. Our Custom Dale Alcock build in the Village at Wellard https://forum.homeone.com.au/viewtopic.php?f=31&t=78620 Re: Wanting to sell house after handover (new build) - ADVIC 15Jan 20, 2016 10:10 pm Forget the last bit - I remember now, Wellard Glen. I reckon any crime there now is building site directed. It's a bit out the way so I don't think any petty criminals (and from what I've heard there's a couple of wayward teens on foot) are going to bother you in your secluded estate Our Custom Dale Alcock build in the Village at Wellard https://forum.homeone.com.au/viewtopic.php?f=31&t=78620 Re: Wanting to sell house after handover (new build) - ADVIC 16Jan 20, 2016 10:53 pm Hey, yeah we are in Wellard Glen I do see the good side of Wellard too through the FB groups Thanks for that, everyone's comments have helped ease my mind a bit... even so I know what options there are for whatever decision we make. But at this stage we will move in and see how it goes. 1st Aug2015 - Bought the block!!![/color] 9th Aug 2015 - Signed with Celebration Homes 30th Sep - Prestart completed. 4th Nov - Earthworks completed 6th Nov - Pad is laid! 15th Dec - Brickwork begins! Re: Wanting to sell house after handover (new build) - ADVIC 17Jan 22, 2016 4:50 pm AussieMark There is crime every day in every suburb.. lol and you know this how? None of the suburbs Ive lived in have ever had crime on a daily, or weekly basis. Monthly on occasions perhaps. OP, have you Googled "Perths worst suburb" or similar terms like that, you usually good a good idea of what a capital cities worst areas are by doing that 9assuming you're not a local). I cant find anything on the net to suggest Wellard has a bad rep generally. But i did find this, if it helps. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Re: Wanting to sell house after handover (new build) - ADVIC 18Jan 22, 2016 4:59 pm Well if we're going to pick on a generalised statement that was made to allay the OPs fear of becoming a victim of crime, let's add to it. Crime happens every day in every suburb because people break the law all the time. It doesn't always get reported. Domestic violence, drug use, drug sales, accessing illegal exploitation material through TOR, local hoons doing burn outs at neighbourhood intersections etc. How do you know crime doesn't happen in every suburb every day? Doesn't have to be reported for a crime to have occurred Just saying. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: Wanting to sell house after handover (new build) - ADVIC 19Jan 22, 2016 5:09 pm Neighbourhood Watch stats tell me what crime goes on. And before you continue with your Texas sharpshooter fallacy, dont even bother arguing about what constitutes crime stats, as clearly only those which are reported can be used. Do not shift the goal posts and start talking about unreported crime just to start an argument please. And I dont think "accessing illegal exploitation material through TOR" is what is giving unease to OP about Wellard. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Re: Wanting to sell house after handover (new build) - ADVIC 20Jan 23, 2016 8:15 am qebtel AussieMark There is crime every day in every suburb.. lol and you know this how? None of the suburbs Ive lived in have ever had crime on a daily, or weekly basis. Monthly on occasions perhaps. I was just making the same type of argument based on this. Published crime stats by police or neighbourhood watch are not always representative and crime stats are actually known to be problematic in their sample, ask any mathematician who has modelled crime, or look it up. Apart for the known fact that many relevant crimes go unreported, a lot of it is either under reported or over reported as well. Car theft or theft from cars is typically over reported for insurance shenanigans, and drug use is typically under reported because some cops can't be bothered with paperwork on what some considers a moral issue and not a worthy crime. Assuming you've lived in an area where crime doesn't happen every day based on problematic published statistics is naive. As to exploitation material access, such individuals could go on to commit crimes against a families child next door. It happens. So to dismiss this typically unidentified and unreported precursor crime as something one isn't worried about is also naive. Your misuse of the texas sharpshooter falacy is ironically delicious. Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. 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