Eligible business owners can obtain relief in the form of a reduction in rent. A landlord can only charge a business rent, equal to the turnover they are currently making based on a previous no-covid period.
With a turnover of 40 per cent of pre-pandemic levels, Tenants will only be charged 40 per cent of its rent. Of the balance, at least half must be waived, with the remainder deferred.
There is also a freeze on rent increases and evictions for not paying rent, which are banned until 15 January 2022, where the tenant is eligible.
To find out if you are eligible, refer to the Victorian Small Business Commission Website.
Landlords Hardship fund re-introduced
The Victorian Govenment is waiving Land Tax of up to 25 per cent to landlords waiving rent for their tenants. Eligible landlords will also be able to defer any remaining 2020 and 2021 land tax until 31 May 2022.
Small landlords who experience hardship as a result of waiving rent between 28 July 2021 and 15 January 2022 under the Scheme will be eligible to apply for a grant of up to $6,000 per eligible tenancy (and in severe cases $10,000) as part of the Commercial Landlord Hardship Fund 3.
To find out if you are eligible, refer to the Victorian Small Business Commission Website. Here you will also find a letter to forward to your tenant to complete to assess if they are eligible.
Stamp duty discounts were introduced by the Victorian Government last year to encourage the property market during lockdown, This has now come to an end as on 30 June 2021.
Unfortunately from 1st July 2021, Stamp duty will not only go back to the normal rates, but properties over $2 million will be charged 1% higher.
If you have had a pre-approval from a bank, you may need to re-apply to confirm that the bank can lend you money to cover the extra stamp duty as of tomorrow. This will avoid potentially losing your deposit due to lack of funds as a result.
The Residential Tenancies Amendment Act 2018 reforms were delayed due to coronavirus (COVID-19). The amendments will now be introduced by 29 March 2021.
The new reforms give the renters the right to minor modifications to the residential property as well as the right to have pets within the property without the Rental Providers (Landlords) permission.
Refer to the Consumer Victoria website for the Summary of the changes to Residential Tenancies and a copy of the The Residential Tenancies Amendment Act 2018
Will you be eligible to pay less stamp duty? Now may be the time to buy.
The Victorian State Treasurer Tim Pallas announced the cut in stamp duty would apply to home sales under $1 million only.
New residential builds valued under $1 million will receive a 50 per cent waiver on stamp duty up to $27,500.
Buyers on existing residential properties will secure a 25 per cent saving of up to $13,750.
Need more information, please call us on 9650 2115 to find out how you can make the most out of this saving.
Caveat Emptor or buyer beware are often used expressions. But do you really know what this means?
Before buying, as a minimum, the following should be thoroughly checked. This includes:
1. Measuring the position of and the size of the land,
2. Checking the building for structure and for pests,
3. Checking your own finances – finance to purchase and finance to renovate,
4. Having the legal documents read to you.
You may want to also check other things such as, has the Council approved the use of that shop to sell fish and chips. Environmental and heritage concerns may also apply.
Cooling off period
The cooling-off period will not always save you, particularly when you are buying 3 days before or after an auction, industrial or commercial use property or a farm larger than 20 hectares. If you try to cool-off, you will lose some of the deposit. Many people try to cool-off after the 3 – day period has expired. There is usually no cooling-off period when buying a business.
The section 32 or section 52 disclosure statement doesn’t always tell you what you need to know. For a business, it is important to understand the business and ‘trial’ the business. Two weeks of takings are not usually representative of the turn-over of a business and can often be quite misleading. The existence of asbestos in building materials will not be evident in the disclosure statement.
Illegally constructed building extensions aren’t disclosed in the Disclosure Statement or in the Council’s building department’s report. If no one applied for a permit, then the building department will have no record of the building works. The Council inspector could well ask the Purchaser to demolish the illegal structure and pay a fine.
The Purchaser will inherit all of the responsibilities of the property from the day the Purchaser signs the Contract. When you are paying so much money, it is worth thoroughly checking. Even check the lights and water supply. It is important to retain and even improve the good-will of the business.
Do you own property in Greece?
Property owners around Greece as well as those living abroad will find out the amount of taxes they will pay for this year.
Refer to link for further information.
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