Yes!! We got unconditional approval! 4 villa development in Gwelup WA
- Thread starter westminster
- Start date
I don't know Boods figures but the numbers for my development are potentially 40-50%.
The right project can make good figures.
Any update on this one Westminster?
Are you running two projects side by side? You're more nuts than I realised! I love it!
Blacky
No update - just waiting on Building License - so you might be getting some concrete pads before me.
The plan was to do one project at a time but I saw the little block in Highgate and had to have it - it was perfect for my next project. Nuts! For sure! I'll be living off vegemite sandwiches and 2 minute noodles for the year.
7 more for the hoard at the end of the projects
UPDATE:
Private certification for engineering and 6 star enviro should be finished next week then onto Building License.
I didn't think it would take this long but I guess it does
Small chance of pads being down end of March - most likely early April.
Private certification for engineering and 6 star enviro should be finished next week then onto Building License.
I didn't think it would take this long but I guess it does
Small chance of pads being down end of March - most likely early April.
My plan too was to hold as the rent would cover the mortgage but like you I have been considering selling one at the end if the market sentiment is good. I'll get appraisal done at end and decide whether the GST and CGT hit makes it worthwhile.
I doubt there would be any CGT, surely this is an income making exercise and not a capital one?
I guess it boils down to how long we think prices can keep growing, when i see 50sqm apartments in inglewood selling for $500k i cant help but think it isnt sustainable long term.
Now see this is why I don't sell because I am yet to wrap my head around tax implications. I do recall my accountant mentioning something about GST if I sold within 5yrs but I don't know how CGT and the Trust will work.
Sounds like it's all going well Myf, good work!!
I am so jealous... after we missed out on getting a loan for our villa in December, I'm getting itchy feet to buy but can't.... oh well! I guess these things happen for a reason. We will definitely be looking for an investment savvy broker to assist us in the future so this doesn't happen again.
Anyhow back onto the topic - how do you get a six star enviro rating? I realise it's probably not straightforward so a brief summary would be great
I am so jealous... after we missed out on getting a loan for our villa in December, I'm getting itchy feet to buy but can't.... oh well! I guess these things happen for a reason. We will definitely be looking for an investment savvy broker to assist us in the future so this doesn't happen again.
Anyhow back onto the topic - how do you get a six star enviro rating? I realise it's probably not straightforward so a brief summary would be great
Sounds like it's all going well Myf, good work!!
I am so jealous... after we missed out on getting a loan for our villa in December, I'm getting itchy feet to buy but can't.... oh well! I guess these things happen for a reason. We will definitely be looking for an investment savvy broker to assist us in the future so this doesn't happen again.
Anyhow back onto the topic - how do you get a six star enviro rating? I realise it's probably not straightforward so a brief summary would be great
Thanks Jen.
6 star energy rating is a newish thing. The Westminster triplexes were built under compulsory 5 star and now 6 star is the go
http://www.buildingcommission.wa.gov.au/consumers/sustainability/6-star-energy-efficiency
There are 2 main checklists that cover all the things but in summary
- insulation in roof and walls (depending on wall structures)
- colour of roofs (ie lighter is better)
- water efficient appliances/tapware
- energy efficient design
- windows to north
- windows shaded from summer sun
- breeze flow via windows/doors
- appropriate width eaves
It does take time to be certified but at the end of the day you are making a home which is more suited to our weather.
http://www.buildingcommission.wa.go...bca-2012-part-3-12-check-sheet---option-2.pdf
Bit of homework done and I was confusing myself really
Trust pays no CGT as it will distribute income and then I pay tax on distributions. Highgate will have GCT as that is in my name not Trust (because I have a CGT loss I'm carrying forward so I thought I would use that)
Might be worth double checking that Myf. I'm no tax expert but I suspect buying a block of land, immediately building 3 apartments and then selling some would be considered developing not investing and so they would be "trading stock" if I remember the term correctly.
You would then have to pay income tax and not CGT which also means you can't use any retained Capital losses. If that's the case having it in your name could be painful as you could end up paying 45%.
Terry or coasty should be able to give a more informed answer.
You would then have to pay income tax and not CGT which also means you can't use any retained Capital losses. If that's the case having it in your name could be painful as you could end up paying 45%.
Terry or coasty should be able to give a more informed answer.
Yes so I would only consider selling one of the Gwelup. Highgate will be to hoard and consider selling one after 12mths but I would say I will still want to keep then. I'm thinking one of Highgate will be a furnished short stay, the other 2 will be standard lease
Hmmmm all the certification was finished and just waiting on CofS to to do building license ...... any day now.....
Then first draw down on construction is on and I get some concrete!
In the meantime I'm taking solace in the news that the Perth market is rising and Hegney are touting 15% rise this year
http://www.hegney.com.au/uploaded/files/client_added/Panic buying hits home in Perth.pdf
All good news for me. I need to revalue when they are complete so that I can uncross the loan and get the 2 Westminster villas off as security.
Then first draw down on construction is on and I get some concrete!
In the meantime I'm taking solace in the news that the Perth market is rising and Hegney are touting 15% rise this year
http://www.hegney.com.au/uploaded/files/client_added/Panic buying hits home in Perth.pdf
All good news for me. I need to revalue when they are complete so that I can uncross the loan and get the 2 Westminster villas off as security.
Bring on the concrete!! How long are you expecting the build to last?
I daren't guess seeing as I'm so crap at it so far. Maybe 6-9mths?
Myf
How long will it take to complete these builds. Am thinking now that developers are jumping in builds will take longer than norm.
I was told once I have permits etc. it will take 6 months to build my 3 units, I was surprised that's not long.
