I'm Doin' it!!

[Viewburn]

Hi Battler,

Great post.

Has the block been subdivied into 2 titles now? If the subdivision has not been completed yet can you then nomiante the wife for the title of the new block?

What is the story with the stamp duty?

Is stamp duty only payable for change of names. If this was the case I would not think the land value for the new subdivided block would not be very high and the stamp duty should only be a couple of $k.

Rate from SRO Vic web site $25,001 - $130,000 $350 plus 2.4 per cent of the dutiable value in excess of $25,000

Was the owner builder permit in 1 or both names?

If the permit was only in name then can you buy another in VIC in the other persons name to be able to get another owner buider permit. The other advantage of keeping titles in only one name is to allow 2 lots of land tax exempt amounts.

Cheers Paul

 

[battler]

Has the block been subdivided into 2 titles now? If the subdivision has not been completed yet can you then nomiante the wife for the title of the new block?

No it's still on one title, it's only going to be dual occ'ed.

What is the story with the stamp duty?

As far as I know it would be payable on transfer to my wife.

Is stamp duty only payable for change of names. If this was the case I would not think the land value for the new subdivided block would not be very high and the stamp duty should only be a couple of $k.

It would be on the total as it's not subdivided, but still may be worth it to allow us to proceed with this project.

Was the owner builder permit in 1 or both names?

Only my name as I am the sole owner and any applicant for a building permit must have their name on the title, but if she had her name on it at this point, I wouldn't have got this far as she has had an OB permit in the previous 3 years which would have stopped me proceeding.

The OB rules are horrific.

If the permit was only in name then can you buy another in VIC in the other persons name to be able to get another owner buider permit. The other advantage of keeping titles in only one name is to allow 2 lots of land tax exempt amounts.

Been there done that, but I'm still restricted by the 3 year rule hence why this one is in my name but the 3 years have expired for my wife now and it could be sold to her to let us proceed, but it's probably simpler to go back to NSW and finish one there in the mean time.

Thanks Paul.

Bureaucracy.........one big cork in the @rse of progress.

 

[Viewburn]

Battler,

I am am sure you have already thought of this but I will through it out there anyway.

If you subdived instead of dual occ then you should only have to pay stamp duty on the land for the new sud division if you leave the exisitng house in your name and put the new sub division in the wifes name. Then hopefully they will allow the wife to be owner build again?? Seems like you have played this game before.

I have seen ads in the yellow pages before of builders that work with o/b. Surley you can find a builder to assist with the paper work it is just about being able to agree to a price for there service.

Is NSW simliar in there time restrictions with O/B requirements? If you do the granny flat thing does that also effect you O/B time clock?

What are your thoughts on dual occ compared to sub divide? From what I can see most seem to like to sub divide because they sell off one or all. My plans would be to hold both and are more rent focused with never wanting to sell.

The disadvantages for sub -divide I see are - possible extra rates and charges depending on the council, I am guessing that the land would also increase in value if sub -divided but I would argue that if a dual occ they could increase the improvment value but land should stay similar. This is more relevant for land tax.

Advantage with sub-div can sell off part if required, can go bank shopping with second title.

 

[battler]

If you subdived instead of dual occ then you should only have to pay stamp duty on the land for the new sud division if you leave the exisitng house in your name and put the new sub division in the wifes name. Then hopefully they will allow the wife to be owner build again??

Yes they should do.

Seems like you have played this game before.

Once or twice

Is NSW simliar in there time restrictions with O/B requirements?

Not sure at this time, but by the time I get organised and get it finished, I'd be free again to complete the one I want to do now.

If you do the granny flat thing does that also effect you O/B time clock?

I would think so as you would still need an OB permit.

What are your thoughts on dual occ compared to sub divide?

We prefer dual occ as we never sell.

From what I can see most seem to like to sub divide because they sell off one or all.

That's ok, there's no right or wrong way.

My plans would be to hold both and are more rent focused with never wanting to sell.

That's worked very well for us for many years, and still will.

The disadvantages for sub -divide I see are - possible extra rates and charges depending on the council, I am guessing that the land would also increase in value if sub -divided but I would argue that if a dual occ they could increase the improvment value but land should stay similar. This is more relevant for land tax.

Yes and land tax can be helped if we jump the border again.

Advantage with sub-div can sell off part if required, can go bank shopping with second title.

Subdividing can certainly give more flexibility.

We've got a property in NSW that was set up for dual occ (all undergrounds etc) a few years ago and is really just a plug in deal for us, as once we have it on the truck it's only another hour or so travelling.

 

[battler]

Hi All,

I've been talking to the people that originally built this house for their elderly parents, and whilst I admit it was only half a house, it was done for $2500 in
the early 70s.

The couple, now in their 80s produced the spare set of curtains for the kitchen as they thought they were better than what was here when we bought.

How goods that!

 

[Slim Pikins]

Hi Battler,

I've been lurking on the site for a while now and have only just joined so only just able to reply to your thread.


You have done a marvellous job mate, and it is fascinating to hear that the original owners only paid $2,500 for it.

I have watched what you have done with interest, and it's great to see the progress photos going through. You seem to have a lot of large gear for your jobs.

Slim

 

[jingo]

Congratulations!

It was purchased for $90k, we spent $30k to extend and get DA approval for a second house at the rear.

The way I see it is that,

1) I doubled the value of it,

2) I doubled the rent return,

3) I gained a block with approval to build another one on.

4) It has cost me nothing in lost wages or other income as I am retired, and I see it is a tax freegain of $65k and extra $100 pw rent above where it started from.

Wow! What an amazing thread. No wonder you are retired!! How many more of these do you plan to do? I spose - just whenever you feel like it!


Regards Jason.

 

[battler]

Hi all, they let me out of Owner Builder jail!

Having had to wait about two and a half years before we could finish this project we finally made a start in September last year.

We moved back into the existing place so we could camp on site.

I changed from stumps and bearers to a slab for the floor to keep the two houses at a similar level.

This cost a bit more than what I said originally but saved us a lot of work as we're getting older and there's only mum and me for most of it.

First off for us was to hand dig the Power and Phone trench to supply the rear house as we couldn't get the machine in there.

The sewer drains went in, then the boxing for the slab.

 

[battler]

The slab was poured including the paths at the same time.

Most of the frames were pre made at home and carted up on the truck, for the longer ones I made a set of wheels to go under mums end so she only had to "steady and steer" rather than having to lift too much.

 

[battler]

I made a pulley on a bracket that clamps over the rafter so we could lift and hold the fascia boards in place as they're a bit hard to handle at 6 meters long.

With the frame finished we started on the doors and windows.

 

[battler]

We continued on and Hardieplanked it while waiting for the plumbers to put the roof on.

Then gave it a coat of paint.

 

[battler]

We plastered and corniced then painted and finished the inside and outside.

I ended up doing a colorbond dividing fence between the two rather than making my own, but it was worth the few extra bob.

We finished it in December 2012 but it took until Feburary to get the power mob to actually connect.

It has been rented since then to the tenant that was in the front house.

We moved on, and the front house has been rented since about then too.

 

[jaspn]

I just read this thread from start to finish. I admire your ingenuity! Well done, and thanks for sharing. I suppose the rent on the front house has now gone up a fair deal?

 

[battler]

Thanks for looking, the rent has gone up over time.

They are producing a little over 11%.

 

[AlmostBob]

Thanks for inspriation