Forum Replies Created
Izzgizz,
I have lived in Townsville off and on for quite a few years. In my opinion both North Ward and West End would be considered blue chip suburbs. Parts of West End which are closer to Ingham Road (bordering with Garbutt) are probably not as attractive though as there are some small industrial buildings in that area. The strand is basically Townsville citys beach area. There are many restaurants and a few hotels and bars along the Strand and it's beautiful early in the morning for a stroll or run.
Good luck.
Gus
Hi Amanda,
Thankyou for the info.
I thought that assets sold by trusts did not attract the 50% CGT discount but I cannot recall where I read that.
I am still confused about the GST and also whether the trustee can retain income and how that is taxed.
I have approached our accountant but we are waiting for a response.
Cheers,
Gus
We are going through one at the moment near Newcastle (LMCC). Our estimated costs were provided to us by our surveyor who has been involved in adjacent subdivisions. A ball park figure provided to us was about $70k / block (based on 8 lots).
Council contributions $20k / block
Construction (roads, services etc) $40k / block
Surveying, flora, fauna, archeological, landscape architect, bushfire etc etc $10k / blockThis is my first attempt and it is still in progress so these are by no means final figures. Ours is a tricky site from an environmental perspective.
I imagine each site will be different, council contributions and construction costs will differ dependant on the complexity and size of the subdivision. But like I said this is my first one…………novice!!!
I did a small labouring job for a chippie in NQ. He layed the decking with reeded side down but he laid the outer border with reeded side up. It looked fantastic!!
I thought I would shed a little more light on our deal just to get some opinions on figures we have been quoted. Also would be nice to get some constructive feedback and hopefully a warm and fuzzy feeling that we are heading in the right direction by those that know alot more than us. Although we have invested in property previously this is our first attempt at a subdivision.
The property – 9 acre lot to be subdivided into 8 lots, located about 15 mins south west of Newcastle city in well established suburb.
Lot yield
1 lot zoned environmental living approx 1.84 ha
7 lots zoned residential between 1300 – 3000 m2The figures
Purchase price 575 000
GST 57 500 (refunded)
Acquisition costs 30 000
Holding costs (interest on 645 000 loan with Colonial) 100 000 based on 2 years
Surveyor and other professional costs 70 000
Council contributions 160 000
Construction and provision of services 320 000
5% contingency 65 000
Selling costs 80 000
Approx total cost 1 480 000 (175 000 / lot)We will need an additional 450 000 for the council contributions and construction phase upon development consent.
Sales of similar blocks in the adjacent subdivisions have been around 280 000+. Estimated cash back not considering tax etc should be 700 000+.
The DA will be submitted to council this week and we have planned for a 12 month approval process. We have a good team of surveyor, REA, solicitor and accountant.
What costs have we missed and how does the deal sound? Is the margin acceptable by normal standards?
TIA
Thanks Terry
ttman,
Sorry to jump in on your topic but can someone also elaborate and tell me which organisation sets the land value and how can you find out what it is?
TIA
Sorry guys but I am a little confused from the last 2 posts. Please correct me if I am wrong. It is definately a discretionary trust.
The loan and the title should both be in the name of the trustee??? What are the implications of getting this wrong?
TIA[wacko]
Thanks for the information Richard.
Presently we have borrowed approximately 30% of the gross realisation but need that to go to about 50-55% to complete the development. This would include the council contributions of about $20k per block. I assume that council contributions would be borrowed using the construction loan product also?
When we receive development consent what is our next step? Should we seek a new valuation or just leave that for the lending institution? What information will the bank require? I have read that the development consent and a construction quotation are required. Is there anything else?
Cheers,
Gus
