how to make $110k 12mths without quitting my day job

When you have a spare moment would be interested to hear about what council knocked back. Did you try to push outside the box? Rear and front set backs are something I spoke to council about for my development. He pretty much said need to have front and side setbacks spot on, rear set back can sometimes have some flexibility pending neighbour etc.
 
It is as long as you can source finance, and there are some new financial products on the market now that can definitely help.

More available time to source more deals to turnover stock, more money in the door.

If you strategize you could also ensure that you increase your income by holding stock that ends up cash flow positive, once again helps with serviceability.
 
Hi Brady

When you have a spare moment would be interested to hear about what council knocked back. Did you try to push outside the box? Rear and front set backs are something I spoke to council about for my development. He pretty much said need to have front and side setbacks spot on, rear set back can sometimes have some flexibility pending neighbour etc.

Yeah, I tried to push the limit of the front setback for the design of the new build, council came back and has to be 4m min no flexibility there. (I was hoping to sneak in 3m for half frontage and 4m for other half with 5.5m for garage)

I didn't realise for the zone I'm in (Marion R12) council development plan says 6m setback from rear boundary- I designed to 3m off rear - builder has a way of bypassing this by reducing the vacant block size down from 330m to just under 300m sq, and then using the residential code method and have it privately certified- that way council can't refuse- the residential code system has smaller limits for POS and setback from rear (only24m sq POS for <300m sq allotments, and 3m min rear setbacks).
I'll try to upload the fact sheets for the resi code as it is something I only just found out about and it is quite interesting- will make subdividing easier- a good check list for when looking at if a property suits infill development or not.
 

Attachments

  • residential code form 1 infill development requirements.pdf
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  • residential code form 2 single storey new build.pdf
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site plan for anyone that is interested

so this is what the designer came up with to meet the residential code- not constructing this- just to get the subdivision approval through
 

Attachments

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GST issues aside, I'd argue that if you repeat this venture it would no longer fall under capital account (thus CGT concessions), but under income account under ordinary concepts of S.6-5, due to a number of factors such as regularity of activity and seeking to generate profits rather than improve or realise a capital asset, therefore land would be trading stock under S70-10.

I'm not going into specifics of thus but id like to wave the warning flag on this one.....

It may work the second time, but the 3rd time I'm pretty sure you would be in income territory rather than capital..

Best of luck,
Dave

Coming back to this, I think tax will be an issue which will erode profits. As mentioned above, first and maybe even second development like this may be treated on capital account and the CGT concessions taken advantage of, however after that this will constitute a development business and assessed on income account.
Issues surrounding GST registration, tax structures, income tax, asset protection.

I think you should consult a tax professional for some advice on this as tackling this ad-hoc may cost you more than some solid PAID advice up front now. Even if the consultant gives you the "all clear" at least you will have peace of mind.. however I do see short comings in this strategy from a tax point of view, which will diminish the profitability of the venture's strategy..

I wish you the best of luck as you are giving it a red hot go!
 
only death and taxes are certain in life

I think you should consult a tax professional for some advice on this as tackling this ad-hoc may cost you more than some solid PAID advice up front now. Even if the consultant gives you the "all clear" at least you will have peace of mind.. however I do see short comings in this strategy from a tax point of view, which will diminish the profitability of the venture's strategy..

!

No worries, I have a good accountant working for me, we've had a long sit down to go over all the tax implications, and as mentioned earlier, I'm well aware that my profit margin is approximately halved once all selling costs and taxes are accounted for and that all profits are treated as ordinary income.

My mum once said to me "I don't mind paying lots of tax - it means I'm making lots of money"
 
No worries, I have a good accountant working for me, we've had a long sit down to go over all the tax implications, and as mentioned earlier, I'm well aware that my profit margin is approximately halved once all selling costs and taxes are accounted for and that all profits are treated as ordinary income.

My mum once said to me "I don't mind paying lots of tax - it means I'm making lots of money"

Haha exactly!!!
I say this to my clients all the time.
 
so true!

As my Dad says, no one ever went broke making a profit.

Exactly!

And any profit i make on this project is just cream on top of a decent paying day job- i don't intend to give up just yet. It is fun to have an interest and hobby that just happens to make money (eventually)
 
What a **** day

It started at 8am when I arrived for another day of renovating to find the house broken into and all my powertools gone plus some random stuff taken like my ladder and workbench, a box of doorhandles, a kitchen sink and 2 security doors that weren't fitted WTF?

Then dad drilled into the wall to get a massive shower of sparks and realises he has hit an electrical wire, thank god he didn't get electrocuted, emergency electrician out to fix that.

Then dad knocks over the new vanity unit and breaks that.

Someone working outside accidentally turns on the valve for the water supply to the toilet (but there is no toilet installed a the moment as it has been removed for tiling and no one realises the toilet and laundry is filling with water until it leaks into the hallway.

Call out and installation fee for a new door handle and lock which was kicked in on the back door.

AAAAAGGGGRRRHHH, I should have stayed in bed today, it was an expensive day and not much got done.
 
A very wise woman once told me "if you are going to stress, don't do it. If you are going to do it, don't stress"

:D:p

Sorry - couldn't help myself.

These **** days are bound to happen. Hopefully your tools are insured? If not, (expensive) lesson learned. It becomes more understandable why tradies always have trailers and pack away everything before they go home of a night.

Im sure you will look back on this day in, and maybe even chuckle.

No one said it would be easy. Chin up... the sun will rise in the east again tomorrow.

Blacky
 
so this is what the designer came up with to meet the residential code- not constructing this- just to get the subdivision approval through

Critiquing the plans...

The house on the left:
Bedrooms that are 2.8m wide are quite narrow.
Hallway looks rather wide.
Whats the point of the study and the lobby?

Keeping within the footprint of the design, a much better and spacious floorplan can be achieved in my opinion.

The house on the right:
Much better use of space.
I would reduce the width of the hallway so that the bedrooms can be increased in width to 3.1m for both those bedrooms.

And sorry to hear about what has happened. Time to get some guard dogs perhaps?
 
G'day Blacky

C'mon everyone sing along

"When I'm stuck with a day
That's gray,
And lonely,
I just stick out my chin
And Grin,
And Say,
Oh
The sun'll come out
Tomorrow
So ya gotta hang on
'Til tomorrow
Come what may
Tomorrow!
Tomorrow!
I love ya
Tomorrow!
You're always
A day
A way!"
 
G'day Nek

Cheers for the constructive criticism, I'm always open to suggestions.

The house on the left is the existing 1946 double brick residence, I agree, crap floorplan, but that's how they did it back in the good ol' days, and my budget doesn't extend to completely reconfiguring the floor plan at this stage, just need it get it to a tenantable level and that'll do.
 
Hope you are having a better day!!!

I was helping my mate with a bathroom/kitchen reno in a bogan area.....

the houses in the neaby by streets were burnt down because there were no one in it.

that was because of lot of kids with lots of free time and nothing to do but breaking in houses and trashing everything.....

anyhow, the way he deter them was to either live at the house or buy low energy light blubs and a radio and have them turned on 24 hours.

He usually set the radio to the borning old AM channel talk show.

After that he didnt have much problems as the kids thought there were someone in the house.

Oh yes, he also put up flood lights with sensors.

Hope this helps.......

I really do feel your pain coz with all those time, effort and time put in and all is wasted.
 
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