Hi all,
I have a few questions regarding a potential sub-division scenario. Would love to hear some input from people who have done this before. Details are as follows:
Current property is an IP in Preston rented out via a real estate agent on a corner block ~ 500sq m. House is situated on the front of the block such that there is appox 250 sq m at the rear of the block (+ ~10sq m easement). I'm considering subdividing and selling both plots individually with plans/permits for a 3BR townhouse on the rear subdivision (subject to council approval of course).
Questions:
(1) Can anyone provide an overview of the process I'd need to go through to achieve this (I found the following link but could not download the flowchart: http://somersoft.com/forums/showthread.php?t=82433)
(2) I'm budgeting approx $20-$25K for this process. Is this realistic? Is this amount a tax deductible expense, or is it only claimable against CGT? (i.e. would there be an advantage in funding this from a re-draw on the existing IP loan?)
(3) Are there any traps or advantages/disadvantages in the order in which I do things for cost / tax reasons (e.g. which subdivision to sell first).
(4) Are there any recommendations on someone that can provide this service (preferably with knowledge/experience with the Darebin council)? How much leg work should I expect to be doing myself? (preferring to minimise this where possible). Anyone had experience with these guys?http://www.propertysubdivision.com.au/
(5) Are there opinions on whether or not a land with plans/permits is easy enough to sell, or do buyers prefer a place already built / being built? Or do people prefer to buy the land and have the flexibility to design their own home? My thoughts were that it is costly for someone to have land sitting there waiting for permits to be approved, whereas I am in no hurry given I'm already renting out the house on the existing half of the property.
Looking forward to hearing your collective thoughts and experiences...
I have a few questions regarding a potential sub-division scenario. Would love to hear some input from people who have done this before. Details are as follows:
Current property is an IP in Preston rented out via a real estate agent on a corner block ~ 500sq m. House is situated on the front of the block such that there is appox 250 sq m at the rear of the block (+ ~10sq m easement). I'm considering subdividing and selling both plots individually with plans/permits for a 3BR townhouse on the rear subdivision (subject to council approval of course).
Questions:
(1) Can anyone provide an overview of the process I'd need to go through to achieve this (I found the following link but could not download the flowchart: http://somersoft.com/forums/showthread.php?t=82433)
(2) I'm budgeting approx $20-$25K for this process. Is this realistic? Is this amount a tax deductible expense, or is it only claimable against CGT? (i.e. would there be an advantage in funding this from a re-draw on the existing IP loan?)
(3) Are there any traps or advantages/disadvantages in the order in which I do things for cost / tax reasons (e.g. which subdivision to sell first).
(4) Are there any recommendations on someone that can provide this service (preferably with knowledge/experience with the Darebin council)? How much leg work should I expect to be doing myself? (preferring to minimise this where possible). Anyone had experience with these guys?http://www.propertysubdivision.com.au/
(5) Are there opinions on whether or not a land with plans/permits is easy enough to sell, or do buyers prefer a place already built / being built? Or do people prefer to buy the land and have the flexibility to design their own home? My thoughts were that it is costly for someone to have land sitting there waiting for permits to be approved, whereas I am in no hurry given I'm already renting out the house on the existing half of the property.
Looking forward to hearing your collective thoughts and experiences...