Have a lovely break from it. It's going to be a busy year for you doing 2 projects so recharge the batteries.
Someone is bound to have a Christmas Barney and split up and need to sell their block
Duplexes 6 & 7
- Thread starter Rockstar
- Start date
Have a lovely break from it. It's going to be a busy year for you doing 2 projects so recharge the batteries.
Someone is bound to have a Christmas Barney and split up and need to sell their block
Hi Toby, I can PM you though this agent has shown me the site even though I was aware of it prior to the inspection. Not sure where we stand there? I would say you have to wait till the agency agreement has lapsed otherwise the agent will demand commission from you.
Maybe others here would have experience with regard to this situation?
Did you have 2 blocks for sale next to each other? I think the 3rd block was another owner in the family? This was the one I almost had the agreement on.
Maybe others here would have experience with regard to this situation?
Did you have 2 blocks for sale next to each other? I think the 3rd block was another owner in the family? This was the one I almost had the agreement on.
Time to update. I've had issues with council regarding House 1 upper floor level. Byron LEP states that upper floor level can't be over 4.5m above natural ground level. My architect believed this to be ok as long as the majority of the floor level complies. Not so according to planners at council!
Difficult to deal with when you're faced with a steep slope.We have cut the house in a bit and reduced the lower ceiling height from 2.7m to 2.4m. Still we found that a portion of the house was over the 4.5m. Not keen to lose any more of that ocean view!
So this is the story. If LEP standard can't be complied with we have to lodge a SEPP1 objection to justify our breach. If this breach is less than 10% of the standard then council planners can approve if reasonable. If the breach is above 10% the DA has to be approved at a general meeting of the full council. We have some deck areas above 10% breach so we have to wait for the next council meeting to find out if either rejected or accepted.
Our council planner has been good and is recommending the DA for approval so I'm feeling confident that it will get the rubber stamp and we can begin construction. Council meeting is April 11 so should be ramping up soon after that date.
Still haven't secured a second project though we are close in negotiations on an existing 3 br house with excellent potential to build a second dwelling and strata subdivide. May be able to stitch this up early next week if vendors are reasonable.
No, not yet. I currently have standing offers on 5 vacant blocks and 1 house and land. Getting pretty close on a couple of these to an agreement.
Hi Rockstart,
I have to come back to you again regarding the 50% CG discount on the property you sell one year after it's built.
Do you claim GST input credits on all the costs involved and do a GST adjustment annually? You have been doing development for some time, is your development activity treated as a business by ATO?
Is your development considered as a mere realization of a capital asset or profit undertaking. If your units/duplexes are treated as trading stocks, you will not have the 50% CG discount but have to pay full income tax instead.
Have you sold any duplexes you built within 2 to 3 years? If you have, do you still get 50% CG discount?
Now I have to sell two townhouses I built 2 years ago for my next development project and my accountant is telling me that I have to pay income tax because I have not hold the properties long enough to convince ATO I didn't build them for a profit. More information in the following thread, and welcome your comments.
http://somersoft.com/forums/showthread.php?t=86525
I have to come back to you again regarding the 50% CG discount on the property you sell one year after it's built.
Do you claim GST input credits on all the costs involved and do a GST adjustment annually? You have been doing development for some time, is your development activity treated as a business by ATO?
Is your development considered as a mere realization of a capital asset or profit undertaking. If your units/duplexes are treated as trading stocks, you will not have the 50% CG discount but have to pay full income tax instead.
Have you sold any duplexes you built within 2 to 3 years? If you have, do you still get 50% CG discount?
Now I have to sell two townhouses I built 2 years ago for my next development project and my accountant is telling me that I have to pay income tax because I have not hold the properties long enough to convince ATO I didn't build them for a profit. More information in the following thread, and welcome your comments.
http://somersoft.com/forums/showthread.php?t=86525
Yes, on some we do mate. We are gst registered for this.
It can be either - as we choose. No 50% discount if trading stock is correct.
Yes and Yes
If you put tenants into them I can't see why they would be considered as trading stock.
When we build a duplex we never know if they will be sold or rented. Our accountant treats them individually according to what eventuates with the course of action. If they are sold then they are treated as trading stock. If they are leased they are treated as an IP. If we move into one they can be treated as PPOR.
Good news!
DA was approved by delegated authority prior to council meeting. Must have been given some special exemption being such a minor issue with no objections about views being obstructed.
I am now working on construction certificate and hope to be on site in 2 - 3 weeks.
We have also just negotiated a deal for Project 2. Contracts are being issued and we plan to exchange within 2 weeks. We settled on an existing house with room to put a second dwelling. I will post more details after exchange.
DA was approved by delegated authority prior to council meeting. Must have been given some special exemption being such a minor issue with no objections about views being obstructed.
I am now working on construction certificate and hope to be on site in 2 - 3 weeks.
We have also just negotiated a deal for Project 2. Contracts are being issued and we plan to exchange within 2 weeks. We settled on an existing house with room to put a second dwelling. I will post more details after exchange.
CC approved a week ago and we have got things rolling on the duplex. I noticed a few rocks just sticking a little above the surface of the ground so decided to go with a bigger machine than usual for the excavation. Fortunately this was a good decision since we found many rocks - and a few big boulders. My driver happily took them away for free apart from the monsters which we will use for features in the garden.
Dug step footings for back house on Thursday and then got an inch of rain. Lucky we hadn't put in the steel yet. Drained away nicely though a clean out is needed.
Framing has been ordered and hope to have posts up for front house by end of next week as well as footings poured for back house.
Already have an interested buyer who likes the plans and the position which is encouraging. Would be nice to sell one before completion.
Dug step footings for back house on Thursday and then got an inch of rain.
Lucky we hadn't put in the steel yet. Drained away nicely though a clean out is needed.Framing has been ordered and hope to have posts up for front house by end of next week as well as footings poured for back house.
Already have an interested buyer who likes the plans and the position which is encouraging. Would be nice to sell one before completion.
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Here are some more pics.
Project 2 will settle next Friday and we'll do a cosmetic reno before either moving in or getting tenants. After that we'll begin surveying and planning for the second houses DA.
We have now secured private finance for this aquisition.
Project 2 will settle next Friday and we'll do a cosmetic reno before either moving in or getting tenants. After that we'll begin surveying and planning for the second houses DA.
We have now secured private finance for this aquisition.
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I'm well overdue for an update. Been a hectic time lately since we have been struggling with intermittent wet weather on a steep slippery site and Have also taken on the 2nd project which ended up being an existing house with land to build a 2nd unit.
I'll run a few posts to cover this.
First some pics for Project 1 - Front house.
I'll run a few posts to cover this.
First some pics for Project 1 - Front house.
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Rear House has been a bit of a saga with the steeper slope, tighter access and complicated stuctural base (at least for me! ) We had to build large step footings with a concrete block wall. This had to be filled with metal dust and compacted in layers. Then the garage slab was poured on top. A lot of work just to get to ground floor for half the house!
My blocklayer is 74yrs old and still going strong!
) We had to build large step footings with a concrete block wall. This had to be filled with metal dust and compacted in layers. Then the garage slab was poured on top. A lot of work just to get to ground floor for half the house!My blocklayer is 74yrs old and still going strong!
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More of rear house. We came across more large rock and some of our pier holes had to be dug out, filled back in, then rebored. The auger won't drill through boulders unfortunately.
Around 60 cubic metres of metal dust had to be trucked in and packed under the slab.
Around 60 cubic metres of metal dust had to be trucked in and packed under the slab.
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Had some dramas with the deliveries and craning all materials into the rear house. Two semis turned up together and created a bit of traffic havoc - especially when one of them stalled in the middle of the road and held up traffic for ten or fifteen minutes while trying to get the truck going. Resulted in complaints and an email from council calling for traffic control application. The site is on a major thoroughfare through the town and on a steep hill. Combine this with wet weather and a churned up nature strip and it presents challenges for deliveries of materials.
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2nd project is also underway. We purchased a small 3 bed/1bath/1gar house for 330k on a corner block. There is around 400sqm on the side to build a second dwelling. Survey is nearly done and we shall proceed with DA in the coming month. Likely to do a vacant strata lot with approved plans. We are currently renovating the house and will move into it within 3 weeks. Once the strata is approved we can begin construction of the new home and put the existing house on the market. We expect to sell the existing house for around 350k after spending around 15k on the reno.
Projected figures are as follows:
Existing house 330k
SD and legals 13k
Reno 15k
New house 120k
Interest 20k
Contingency 22k
Total 520k
End val
Existing house 350k
New house 350k
Total 700k
Equity gain 180k.
Profit will depend on whether we sell new house or not - ie: potential gst and agent fees could add to cost.
Existing house will be our PPOR so no tax when we sell it.
Back to work!
Projected figures are as follows:
Existing house 330k
SD and legals 13k
Reno 15k
New house 120k
Interest 20k
Contingency 22k
Total 520k
End val
Existing house 350k
New house 350k
Total 700k
Equity gain 180k.
Profit will depend on whether we sell new house or not - ie: potential gst and agent fees could add to cost.
Existing house will be our PPOR so no tax when we sell it.
Back to work!
