Dual Occupancy - How to Calculate the Cost Base?

[Canberran]

Hi all,

We have a dual occupancy block and are in the process of subdivision.

Purchase price is $400k for the whole block. We keep the existing one and build one at the back. The total cost of DA, building, and etc will be about 300k.

1. The formula to calculate the cost base. (What is the rough figure of cost base if we are going to sell the new one after complete?)
2. Who needs to be involved in the process (Valuer/accountant??)?
3. If we live in the new one for a year before selling, do we need to pay CGT?

Thanks

 

[tcocaro]

more details needed

Your question is to hard to answer without providing more details i.e. inclusions, type of construction etc.

In canberra builders go of living square i.e. 9.3 sqm (or thereabouts). Most builders in canberra charge approx $1500 a sqm. Therefore for a 140 sqm dwelling it could cost you about $210k

Ontop of this you have to add garage $16 approx for single and 32k for double.

The pricing structures differ with the type of builder you get i.e. project home builder or a more commercial builder.

For a project this size i would strongly recommend a project builder you can trust.

I hope this has helped in someway but without knowing where the block is i cant even guess to what type of inclusions e.g. red hill will differ from dunlop etc.

I have developed over 50+ dwellings in canberra mostly in Gungahlin\Mckellar\Dunlop. If you need any help in getting a builder i can put you in contact with mine, hes the cheapest in Canberra and i honestly beleive the best, hes no fuss and all he does is build. (Hes one of the bigger builders too).

I also know of a good agent (which is crucial to any development) if you choose to sell during construction, before or after.

To be clear, I don't get commission (i cant be stuffed playing that game to be honest), im doing this because i like to keep everyone happy i.e. the agent likes me for throwing business his way and so does my builder. The benefit you get is cheap construction and a good agent, a process i had to find out the hard way myself.

Regardless wish you the best in your build.

 

[Canberran]

Thanks tcocaro for your comment and info.

I am not asking the cost to build the house. What I am asking is : how to calculate the cost base if we need to pay CGT when we sell.

The builders we've got quotes from approx. $1000-1100 per sqm for a 20sq house plus a double garage. The inclusion will be very basic as the market we are targeting is not at the high end.

Maybe I need to post this at different category.

Cheers

 

[stumunro]

Thanks tcocaro for your comment and info.

I am not asking the cost to build the house. What I am asking is : how to calculate the cost base if we need to pay CGT when we sell.

The builders we've got quotes from approx. $1000-1100 per sqm for a 20sq house plus a double garage. The inclusion will be very basic as the market we are targeting is not at the high end.

Maybe I need to post this at different category.

Cheers

purchase price + major building works - depreciation (regardless of whether you claim or not)

(please check this with an accountant first)