Hi All, Looking for advice on how to go ahead with this development.
Here is the scenario.
I bought an investment property on a big block few years back. It had good development potential given its size and proximity to train station and shops. Few months later, the guy next door approached me with the idea of developing the 2 sites combined for a greater yield. After exploring this option, we went to the council with a 10 townhouse proposal, 5 on each block with a driveway down the middle. However due to recent changes, the council was looking for a higher density development in the area. So finally after a long and expensive town planning/VCAT process (due to neighbours objections) we finally have a permit (DA) for a 30 apartment building.
Now I own my block in my personal name and my neighbour owns his in his personal name. Question is what is the best way of developing it through a company so that we retain a few apartments each. Also how can we develop it so that the entity developing and selling the apartments is a company, but we retain the land in personal names until the actual sub-division occurs. One suggestion has been that we can do this thru a JV between the land owners (us) and the company directors (us again) to satisfy the banks and avoid the stamp duty.
Finally, We realise we have to seek professional advice on this before we proceed any further. However it will be good to be armed with some ideas/suggestions from you all.
Here is the scenario.
I bought an investment property on a big block few years back. It had good development potential given its size and proximity to train station and shops. Few months later, the guy next door approached me with the idea of developing the 2 sites combined for a greater yield. After exploring this option, we went to the council with a 10 townhouse proposal, 5 on each block with a driveway down the middle. However due to recent changes, the council was looking for a higher density development in the area. So finally after a long and expensive town planning/VCAT process (due to neighbours objections) we finally have a permit (DA) for a 30 apartment building.
Now I own my block in my personal name and my neighbour owns his in his personal name. Question is what is the best way of developing it through a company so that we retain a few apartments each. Also how can we develop it so that the entity developing and selling the apartments is a company, but we retain the land in personal names until the actual sub-division occurs. One suggestion has been that we can do this thru a JV between the land owners (us) and the company directors (us again) to satisfy the banks and avoid the stamp duty.
Finally, We realise we have to seek professional advice on this before we proceed any further. However it will be good to be armed with some ideas/suggestions from you all.