Hi Terryw,

So the value of the site/property was $480,000. I paid stamp duty based on 50% of that value.

So would $240,000 be my costbase? Even though there was no monetary transfer to my mum.

Thanks

Hi Paul B
Thanks for the great advice. You're right, I should be looking at short-medium term margins as well. Short term if I were to value at 700k each, i'd say we'd be looking at 15% gain. Medium-long is harder to predict. I know we won't see the exponential growth my parents had in 90's, but I can see consistent growth with this area. It…[Read more]

Thanks mattsta. It will be some time before we take this project on. If we decide to do it that is. I'd be fairly keen to take it on in 1-2 years however it depends of my brother's situation too at that point. I'd be sure to keep everyone posted. 

At the moment I'm about to start a townhouse project in Box Hill South, so I might create a "project…[Read more]

Hi Freckle,
Thanks for your opinion. So based on your expected figures, you wouldn't consider this project if you were given the same opportunity? 

Keep in mind that we have no intention to sell as we are both young on good salaries more than capable of paying interest should the rent not cover it. 

I know most developers look at margins,…[Read more]

Thanks for the feedback. I don't really have a time frame of when we want to start the project. It would be at least 2 years away as I have some other projects on the go. But we will definitely be speaking to drafters, council etc when we are ready to turn the project on. 
Thanks!

Yes, having people in the building game helps a lot. 

I haven't validated any pricing as we don't have plans. I'm going by research on current townhouse prices in the area and concluding that we'll build something similar. 

It's a good area that I believe will continue to grow in the long term. We don't plan to sell, it's very much a long term…[Read more]

Thanks for your advice. Yes the legal part will be something we need to look into if we go ahead with it.

At this stage it is just an option that we are tossing up and doing some feasibility studies. 

We're fortunate in that our parents bought IP's in some great areas when they were very affordable. Now that they are hitting retirement, we can…[Read more]

Thanks for your advice.

I don't think I have underestimated the build. We have some significant advantages with my old man being a builder and my brother working for a large building materials company. Basically get 20% of wholesale price for plaster, timber, bricks, concrete etc etc. Anyways, I really appreciate all the advice! 

We will purchase it without paying for it initially if that makes sense. We will only pay stamp duty based on market value to get ourselves onto the title. Obviously we still owe dad 650k. But when it comes the time that he requires it, we would either sell one of the Townhouses, or just take out a loan. 

Dad will transfer the current house to me and my brother as a gift. We will only have to pay stamp duty, fees etc. Anyways, loan will not be an issue as we have that covered. 

We only want to use the rent to cover interest as well as $400 per week we owe dad. Just let it sit 5-10 years until we are required to start paying principle. 

I just…[Read more]

NHG wrote:
Hmm…Would having a third party place a caveat void any sale of the property?Could this be done asap?

Could you please explain this as i’m not sure what this means?

Thanks,

Thanks guys.

My solicitor is handling it now.

It’s just one of those terrible family situations that i’ve been dragged into. Hopefully it works out.

Cheers,
ksun1985

Thanks,

Do you need a license to sub contract the work after lock up stage? i.e can the builder walk away after lock up stage and leave the rest to me to complete?

I’m asking because I owner built my current residence and know many people on the trade and want to try save as much as possible. (My father is a plasterer)

Thanks!

Do you have any recommended planners/architects who take on the project from initial design to building permit stage?

fda wrote:
Some architects do charge really low. I know someone who charges about $6k for a 2 x double storey town houses town planning which include the planning report. It is a relatively new company but their service is r…[Read more]

Could it be this price because she works from home and doesn’t have the overheads associated with offices, etc?

Interesting. What would you be expecting to pay for this sort of development.

This architect came recommended to me. She has lots of experience with townhouse developments and has been very informative with my questions and design so far.

Terryw wrote:
You cannot change ownership without paying stamp duty – generally, an exemption in some situations is for transfers between spouses.You could transfer half the house, or even less, such as 1% to get your name on title. you will only pay stamp duty on the value of the portion transferred. See if your bank is happy with this first…[Read more]