build and sell OR sell land

Own a 809m2 subdivided land (Corinda, Brisbane) with an old house rented currently.. My dilemma is whether to, sell the house and land as is or

- get rid of the old house
- building 2 new 2 storey house and sell
- quote/house $300k

Question

- what is demolition cost ( house is most likely asbestos build )
- what is the cost of ID servey
- cost for providing services to both the properties

The above 3 components are not included in the 300k build cost

Does anyone have any contacts for good demolition company in Brisbane?

much appreciated
 
Hi

I have recently just done this at Virginia (late 2014 - early 2015), my costs were as follows:

- what is demolition cost ( house is most likely asbestos build ) $16k including asbestos this was for a low set )
- what is the cost of ID survey This was around $3900
- cost for providing services to both the properties $7,198.00 (using urban utilities)


There are also some costs of abolishing gas and electricity they were only around $500


Our demolition was done by:

Danny Cincovic
Able Earthmoving Pty Ltd
0412 376 579
cincovic@live.com.au

Quiet happy with Danny, he would send pictures of updates.

As far as building and selling, I think this gets messy with you possibly being classed as a developer and paying GST and well as income tax. If you are going to move the house I would build and keep them and rent them out otherwise I think just selling the subdivided blocks is a better option if you want to sell.
 
This is great info Letiha. Thank you so much. A few questions, if you dont mind answering

- did you end up selling your properties?
- If so, how did you project what you would would sell them for if you did build and sell, as you went down the path of building rather than selling the land?
- Did you project manage this yourself?
- would the accountant be the best person to question about GST and other taxes you mentioned if i do build and sell?

Due to the circumstances my option is to either sell as is, or build and sell. Just trying to work out what is profitable.
 
Hi there, if the block is on two lots already, ID survey should not be more than 2k including GST.

Letiha the survey you are talking about sounds like a reconfiguration of lot survey. This was about how much we paid for the surveyor component of the DA for a 1 into 2 lot block recently. This included survey, plans, report and sealing with council.

Statewide Survey or WD survey should be able to take care of and ID survey for you for under 2k. We have used them both and both are similar cost/time etc.

Also, servicing will depend ALOT on where existing water and sewer mains run.

For example, if a water or sewer is a "standard" connection (Same side of road on footpath, under 3k should do it for each. If it's across the road, it could add a couple grand to each connection.

If there are some complexities in where the sewer runs (through the middle of your block for example) it could be enormously more expensive to realign it, and/or pay for Build Over Sewer application, and then extra slab work to cantilever slab over it for example if you can't get it clear of the proposed properties. We have paid upwards of 15k on two separate projects in the recent past but this was budgeted for and factored into our offer when we bought the block.

Best thing you can do to determine this (and hopefully find that sewer and water both run nicely along the front of your property, on your side of the road) is do a "Dial Before You Dig" search.

Cheers,
 
- did you end up selling your properties? No, we are about to build on them, plans are with council

- If so, how did you project what you would would sell them for if you did build and sell, as you went down the path of building rather than selling the land? Land where my block is hard to come by, and looking at valuations we have received we are about $40k - $70k in equity on each block. When we build on them we will have 2 cashflow positive properties, I did consider selling them but felt it would be hard to find replacement land.

For my next project (once I find a block) I think we may sell 1 block and build on the other to allow us to do our next project.

- Did you project manage this yourself?
Yes I did, I did get some quotes for PM for about $6k, put I felt I could do it myself, and found the process fairly straight forward,

- would the accountant be the best person to question about GST and other taxes you mentioned if i do build and sell? Yes, but make sure its a good accountant that actually deals with this this type of stuff, you should be able to get recommendations on here.
 
I did have a look at your forum with regards to your build. Good luck and keep going. Very interested to see how the houses turn out. You have been very helpful. I will keep an eye on the progress of your build.
 
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