Kit Home Duplex Development - Rockstar No.3

Hi Bill, The rock work is my profession but I don't work for others much anymore. I still do some in my duplexes just to add a nice touch to the houses.

Here are some progress shots from yesterday. Today I finished the rest of the boulder and step shapes and will post some pics when I get the chance. :)
 

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And here is a sample of some of my varying applications for replica rockwork.
 

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Well we settled as planned yesterday which brings this project (and thread) almost to a close. I still have some outside touch ups do do - once the weather fines up. An aquaintance has rented the new home privately from the new owner for $330/wk (appraised at $350/wk) so I can finish the final small things at my leisure.

From my second post in this thread. 19/12/09

Feaso

Land 260k
Total Construction incl strata costs 200k (100k x 2)
Council 20k
Holding costs 50k
Contingency 20k

Total 550k

Todays Market Value 700 - 750k

Todays Rental Value 650/wk

Rough final figures are:

Land + purchase costs 260k
Construction and development costs 235k
Holding costs 60k (ouch)

Total 555k

Sales (net) 745k

Todays rental value 700/wk

The experience I have gained from this project is invaluable and I am grateful for the strong support from Mrs RS. She is my "dream pusher" :D

Will try and get some inside shots for the final post. :)
 

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How are you handling GST ?

No gst involved 2dogs. All done as an investment (not development) when I purchased the site 3 yrs ago. Ended up being forced to change plans and sell. Therefore I will just pay cgt after receiving 50% discount for holding more than 1 yr. The first one of the pair that we built was sold in previous financial yr to spread the load. ;)
 
Don't you like it when they describe it as a hidden secret

Guess the local market is now reporting what you know from your IP experience....

Yesterday's paper has a story on the region's property market and quotes a REA in your town saying that retirees downsizing and young families find the town attractive.

In contrast my patch was described as the third most affordable area with a median of 325K & having the largest number of sold properties in area.

Funny how they can put spin on a story.

One thing I do know from talking with casual aquaintances is that downsizing is in their retirement plans, mainly to get rid of mowing yard & weeding gardens.



Cheers
Sheryn
 
One thing I do know from talking with casual aquaintances is that downsizing is in their retirement plans, mainly to get rid of mowing yard & weeding gardens.

Which is only a problem only if they can't afford to get a gardener in.

Getting someone to mow the lawn is so cheap that some people don't bother doing it themselves anymore
 
I think this is the 4th time I've read this thread! Love it!

Hi Rockstar, I've read all your threads a few times each, I really enjoy revisiting them to see if there's anything else I can learn. Thanks so much for sharing all your knowledge and experiences.

A couple of questions:
1. what would you have done if you didn't get approval for 2nd dwelling (or is that problem long out of your mind)
2. Would you recommend the method of building one dwelling at a time if that's all finances allowed for? I'm planning to do similar to this while I'm on maternity leave later this year. I think we could only afford one at at time to start with.

I have so many more questions...... I'll keep reading through your threads to make sure I'm not asking questions already answered.
 
A couple of questions:
1. what would you have done if you didn't get approval for 2nd dwelling (or is that problem long out of your mind)
2. Would you recommend the method of building one dwelling at a time if that's all finances allowed for? I'm planning to do similar to this while I'm on maternity leave later this year. I think we could only afford one at at time to start with.
1. Yes, long out of mind so I had to reread the thread myself to check the info. Obstacles can be an opportunity to strengthen your character. You can't read the into future so you must manage the situations as they present themselves. I've had much larger obstacles than your above hypothetical "what if". They bring opportunity in sometimes strange ways as long as you maintain the right attitude and take responsibility for what has happened. eg: We purchased our first investment around 20yrs ago for 100k and ended up with a bankrupt tenant and had to drastically reduce the original rent to attract a new tenant (it was commercial premises). We sold the property a few years later for a meager 50k just before it boomed. What a lesson - though it didn't put an end to the passion to use property as a wealth building tool. Having a tenanted shop at least helped us secure a loan for a residence that we renovated and doubled our money in 4 yrs - more than what we lost. This enabled us to purchase further property and on it went from there.
You have to examine what results you are receiving in your life. If you want better you have to keep advancing yourself. Apart from gaining knowledge I believe that one needs to venture onto the path of self improvement which includes development of morality, gratitude, responsibility, charity and humility. Believe me, I am a long way from perfecting these ideals but I am making efforts to realise them and it has really helped me reach higher levels of contentment and satisfaction along with increasing net worth. :)

2. Yes, it is a great option if finances are stretched and your capacity to borrow money is limited.

Best wishes with the venture - and bub. :)
 
Well it's been quite some time since I posted on this thread - and for good reason. I have not posted about the ongoing dramas as no one could have solved my problem except myself.

I am understanding more and more why developing is not for most people. Plenty of hurdles to jump over and the one I came across came out of the blue while I was away for a long weekend in the Blue Mts.

Some history. As I reported at the beginning of this thread, a friend of mine was also building a kit home duplex in the same town. He was a few weeks ahead of me and completed his house before me. He also had a contract in place for the sale of house 1 and had submitted a "development contract" to council which accompanied his strata subdivision plans. All was progressing slowly but smoothly through council and his application was approved and a Strata subdivision certificate was issued by council. They also signed the strata administration sheet which was to be sent to Land Titles Office. My application, at this stage, had also been lodged with council but was some weeks behind. So once my friends' documents had been approved he had to then send them to the bank to be signed in order to release the original title to enable the strata subdivision to be registered at LTO. This all takes time - especially as it was a Macquarie funded loan. After a couple of weeks he had everything he required to send off to LTO and his solicitor lodged the subdivision application through an agent. Anyway I received a call from my surveyor while I was holidaying and the news was quite a shock - it was actually news about my friends lodgement as we use the same surveyor. The LTO had rejected his application! They told him that council had misinterpreted the subdivision laws and had wrongly made him (and me of course) go through the lengthy and costly process of creating a Strata Development Contract which was unacceptable to LTO. :eek::mad:
Sooo.. of course, according to council, LTO had been allowing these to be processed in the past so it wasn't their problem!:mad: Here we had both council and LTO shirking responsibility with my friend, me and, apparantly, 10 other applicants in the council system in no mans land.
Well, that was around 24th Sept. Fast forward to now and we have just managed to, after much negotiating, a section 96 and an 88b, get the revised plans (without a development contract) ready for lodgement to LTO. I will give out the info in another post about how it was solved if anyone is interested.
The good news is now we are around 3 weeks away from getting this subdivision registered so we can settle on the first house and throw some money at the 2nd house to get it built. All of this business is also holding up the purchase of our next block of land which is subject to the settlement of House 1. :(

I know it is an old post, however your experience is very valuable to me that I read the post and attached Dual Occ doc carefully and research the LTO site.

According LTO, stage 1 of the development does not require a development contract but plans and administration sheet.

You already have the DA for staged development, why you need to submit the s96?

What has the S88B to do with a strata subdivision?

Do you mind to shield light on how it was solved?

I have a DA approval for strata subdivision for two detached dwellings which is not a staged development. We built one and lived in for years.
I would like to register the strata subdivision with LTO so I can sell the house to fund the 2nd house.

I think I need to:

1. lodge s96 amend the DA for staged development
2. preparing the staged development strata plan
3. apply for strata subdivision certificate for 1st stage development (the
built house).
4. Survey certificate
5. Apply to register the strata plan with LTO accompanying the plans and
certificates
 
just writing a comment in here so I can easily find this thread in the future : ) could come in handy, also thankyou for sharing the info
 
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