Forum Replies Created
Wow crj it is amazing the amount of people like myself included who are GST ignorant. I have recently spoken to a number of small builders, developers and real estate people who know nothing about GST. A lot have not paid GST which is a massive mistake and they could find themselves up for thousands plus interest.
Just wondering what builder you will be using. I am getting development plans through council at moment I was told four weeks and phoned after four and a half weeks and was told not even been looked at. Had to make a few minor changes still waiting its been eleven weeks.
Great job Joel looked like you roped in some family members to help. I did think the property looked pretty good at the start. The furniture made the house look loved and lived in. I have brought two properties in such a state when I showed my friend she ran out and vomited on the front lawn because of the terrible smell. Where did you get the idea for the kitchen? I started at bunnings looking for a new kitchen and ended up just painting with a special laminate paint. I found the costs associated with buying and selling plus capital gains made holding on to properties more sensible. I may have made $50,000 in three weeks, which I thought was pretty good. I took a big risk and brought sight unseen on the advise of a local agent. I was the second buyer because first got cold feet. Did you have much trouble finding your property?.
It is easier to sell the land than develop. If you held the land more than 12 months you can get capital gains concessions. If you build you have to pay GST when you sell and can not claim a capital gain concession. If you hold for 5 years and than sell no GST is payable. It is a lot of money to develop and hold.
Hi Ladybird
I am in Perth and am using North Point Drafting. I was planning on developing with one of the strata specialist who advertise in the West Australian. I phoned four and had to leave messages had one response after two weeks. I decided to get my own design drawn up and then get builders on board.I have a triplex site and I am getting my own design and plans done. This means I can go to builders and ask them for a price and compare like for like. This means you own copyright for plans. I had to get a feature survey done but before building a site survey where pegs are put down will be carried out.
The main thing is time and energy. I have no trade background but do know lots of trades people. Most things are basic and go in the order you expect. I found most of the trades tell you when they will come because they dont like working around each other. I was invited to inspect a unit development by a builder recently. The units had all been tiled so the painter could not spray the door frames to get a really nice finish. The tiles had about an inch of sand over them from the trades walking back and forth. The end result is an inferior finish because of organisation. I am still looking for a builder because of the time and energy required to owner build. It just annoys me when they all seem to make basic mistakes that even I can see.
The builders all quoted for one electrical and light points,tiles basic and no painting. I have tiles to roof height double power points and loads of down lights and top end taps and vanities. I was amazed myself at the savings and thought builders made about 30%. It was a busy period for building but one builder was going to make us wait four months anyway. I was against owner building but I ended up with a better finished product. I organised the trades and project managed the build. I paid above other builders so trades were all dropping jobs to do mine first and get paid extra. It does take a massive amount of time and energy.
It is very hard to get finance for owner building. I am currently going through the process at the moment and will have to put in 50% and borrow on a line of credit loan which will make loan .10% above variable rate. I have owner built before and found the savings to be about 50% on prices quoted from builders which is an amazing amount.
Hey Lockymac
I am in WA just paid a $1000 + GST for Feature Survey. I think I paid too much after reading your post.I have spoken to accountant and yes I do have to pay GST unless I keep the three villas for five years. I am now looking at owner building. I have hit a problem with financing development because owner building is high risk so will have to put my own money into the build and hopefully get finance on completion and valuation.
I will go talk to accountant he may advise to buy another property instead of developing can always sell with plans drawn up. I have an excellent tenant, a government agency who are great payers and look after property. Just got money in the bank getting low interest at moment so looking at buying or developing.
I will probably have to go talk to accountant. But I wanted to know if I could claim 50% capital gain discount on investment property because held for more than 12 months. Example property cost to purchase 228,000 value now 340,000 Capital gain 112,000 50% 56,0000 Cost of contruction and extras 469,500 selling price $360,000 per villa If you sell a villa how do you work out capital gain
Thanks for information, big tax bill this year and low income for next financial thought I might have been onto a winner. I will see if I can prepay my insurance and rates. Still have big shortfall anyway.
Thanks I willl get agreement drawn up. I can not get enough finance to build without a partner. I have two IPs with capital growth of over $260,000 in twelve months.{Booming Perth}
Thanks for tip SQ
Thanks I will have a read.
