Thanks Richard – I am trying to find construction costs for other building around Charters Towers, it seems that not a whole lot is going on there at the moment.  I will be going for a drive in a few weeks to pay a few builders a visit and to have a closer look at the house.

On a side note I have just changed my other loans to interest only to help free up some cash for this project, and hopefully we can buy in the US as well very soon.

I think I have a property addiction now…I just want more and more and more.

Thanks Scott

The intention is to achieve positive cash flow and hold onto the units, using the equity created to purchase more property.

Is the staged plan a good idea? or should we just borrow a little bit more to cover repayments during construction (say 6 months worth) and do the whole lot in one go?  Can you defer payment during construction, or negotiate with a builder to pay a significant portion on completion? 

I have also considered giving the builder 4 of the 9 units as 'payment' for the construction, or even 2 units plus cost of materials etc although I think it would be better to have control over the whole lot.

If we hold on to all of the units should we still go through the strata title process?

We will be going 50/50 on all costs, what do I need to have documented?  I know people always say to have things set in concrete – even family – but I am not sure what is required.

I was planning on not using an architect for this project,  I have drawn up a few sets of house plans and have a good structural enigneer that I use who certifies the engineering side.  Is this a wise move?

Is it worth getting the townhouses to 'lock up' stage through a builder and then organising the fit-out myself and the fencing/landscaping?  I have just gutted a house I bought and pretty much done a full fit out quite cheaply.  Buying in bulk should also help to reduce fit out costs.

I am assuming headworks charges will be approximately $10k per unit, and the driveway/entry will cost approx $30k.

I have thought about the idea of pre-fab units (the block is large enough that we don't need to go 2-storey townhouses – but I like this idea as it frees up space for a possible swimming pool etc).   Any thoughts on this?

I would like to have the units/townhouses built for approx $110k and then headworks charges and connection costs to be added on top of this. 

Thanks Sonya

Reducing my tax sounds like a good idea, I thought about doing this a while ago, but I do like the lump sum return every year – I guess forced savings.  I usually put it towards a good cause.

I am considering my next purchase in Melbourne (Richmond/Prahran/Fitzroy/Carlton) , OR possibly Orlando, Florida.  I need to do a lot more research before I dive in again though.

Looking forward to learning a lot on here.