So, will minority strata owners be forced to sell?

While the officially the opportunity to make submissions and comments for the Review of strata and community scheme laws has now closed, according to the NSW Fair Trading site, comments and submissions are still currently being accepted.

 

One issue raised in the review process concerns the question of whether minority strata owners can be forced to sell to make way for development.  I’ve commented on this before; I believe the issues I highlighted remain pertinent. 

 

Leesha McKenny in her SMH article today encapsulates the issue by asking can you fairly balance the rights of owners who want their ageing apartment building redeveloped with those of an owner refusing to sell? 

 

Information about the Review is on the NSW Fair Trading site, and a good resource, with online comments and links to submissions, can be found on the Open Forum site here.

 

According the NSW government's indicative timetable, drafting of new laws is to occur by about June next year, with a release of an exposure draft bill in about July next year.  Let's wait and see.

Buying into a franchise? Here's one bit of essential, and free advice!

According to the Franchising Australia 2012 report, published by Griffith University, in Australia there are currently about 1,180 business format franchisors, and about 73,000 operators of business format franchises.  These are big numbers.
 

For many years I have advised and continue to advise franchisee clients, both long time operators and first timers.
 

With new intending franchisees, there’s much to discuss, advise, explain, check, re-check, and so on.  Particularly for newcomers, usually advice ought to be sought from their solicitor, accountant and business advisor.
 

Are you thinking about, or have decided to buy a franchise business?
 

Here’s what I think is probably the best early advice, and easiest to follow and understand by newcomers:

Before committing, talk to and ask as many questions as you can to as many current franchisee operators and owners in the system as possible.

That’s how you often get a real-world sense of how the system actually works with real franchisees, how much real or worthwhile support is provided by franchisors, and if the rewards are actually there to be earned. 
 

Unfortunately, sometimes this can reveal that the reality doesn’t quite match the claims in the glossy brochures.  The time to find this out is before committing to buying into a system.
 

A compulsory document that must be provided by franchisors to prospective franchisees before franchise documents are signed, is a Disclosure Document.  One of the may types of information it contains is the names and contact details of other franchisees, at least in your state, if not nationally.

Use it!

NSW first home buyers' benefits and stamp duty exemptions: make sure your advice is up to date

I’ve had the unpleasant experience recently in having to explain to a number of clients who have shopped for property, experienced the usual anxiety and excitement, seen their finance adviser & assured of finance, that the entitlement or benefit their finance adviser explained they’d receive, that they actually won’t.  Even though it was someone else who provided incorrect or out of date advice, I’m made out to feel like the Grinch because I provided the correct advice as what the current law is!

So, here is what I hope is a quick and simple statement of what the NSW situation is regarding stamp duty exemptions and first home owners’ benefits for contracts made on or 1 October 2012 to date.

First home buyers
Current scheme is the First Home Owner Grant (New Homes) Scheme.

Where the property is $650,000.00 or less, a first home buyer who buys or builds a new home is eligible for a $15,000.00 grant.

This grant reduces to $10,000.00 for contracts made from 1 January 2014.

In addition, there is an exemption from paying stamp duty when buying a new home, or vacant land where a new home is to be built.  This applies for homes priced up to $650,000.00, and vacant land up to $450,000.00.

Non first home buyers

There is now the NSW New Home Grant Scheme. 

Non first-home buyers are entitled to a grant of $5,000.00 if they buy a newly built home (including "off the plan" purchases), priced up to $650,000.00.  If the duty normally payable happens to be less than $5,000.00, the difference is given as a grant.

Non first-home buyers who buy vacant land priced up to $450,000.00 with the intention of building a new home on it are also receive the grant.

 

Regional Relocation Grant

The RegionalRelocation (Home Buyers Grant) is about helping previous owners of a metropolitan property with the cost of relocating to a regional home with a one-off grant of $7,000.00.
 

The price of the regional home must not exceed $600,000.00 (or $450,000.00 for vacant land). There are other requiremnets, but these are the major ones.

 

That’s it!

There’s no more $7,000.00 first home owners grant, no more reduced stamp duty, no more new home buyers’ supplement, no more first home owner boost.

If you’re in the process of buying now and you’re advised differently to what’s above, or there is a question mark about what benefits exactly you might be entitled to, or just to check your eligibility, see your solicitor first.