Phobia

80% at 7.35% reducing over 2 years available.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Shaun

Think your post was 6 minutes late.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

To subdivide a block of land there are many steps:

1) Is the zoning & size of the land suitable to do so. A search of the Town Plan will tell you.
2) The property will need to be surveyed and the plan of subdivision submitted to the Local Authority for consideration. Needless to say “yes” they is an application fee.
3) If approved the Development Approval will contain certain conditions which may include amongst others:

Provision of all services to the new property i.e sewerage, stormwater, electrical and telecommunications

Provision of a driveway and possibly a new road depending on the side of the original block and the number of Lots. This maybe bonded in certain circumstances.

Payment of Headworks and Parkland contributions which will vary from Council to Council.

4) Granting of easements if necesary.

5) Consent from your mortgagee if the land is financed.

6) Lodge the plan of subdivision into the Dept of Natural Resources to seal the new title.

All in all (and this is a general overview) a lenghthy process. We are currently subdividing 2 houses in an inner Brisbane suburb into 18 blocks and anticipate it will take 8 months and another 4 months to install the road and services.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Guys

Watch this space Wednesday morning as i have a wager with BillfromOz that we will not get a 50 basis point increase.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Interesting that you mention Mt Morgan

Funny that a large organisation which will remain nameless settled on 19 houses in Mt Morgan during October. Don’t think they thought it was going backwards

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

We purchased a property in Surat in Qld in June of this year for $32,000 and had it revalued by NAB last week for $46,000.

Looking to wrap it now for $66,000.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Murmur

Another one which appears to have been missed is Building Write Off.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Well guys

Hate to break it to you that England will overcome 1991 and win the Cup.

As a Pom i have had to endure a decade of poor performances in most sports but at last the tide is starting to turn.

Remember what god created on the 8th Day – Johnny Wilkinson and weep.

Here’s to Sunday’s forum fun.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Crashy

Presumably the $35K doesnt include GST on the margin sale?

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

mikeej

Westan is pretty much right.

If you subdivide the front house off the cost base placed on the value of the land on the back 2 blocks will be proportionate to the land area of each bock.

I.e if land value = $100K and total land size is 1000 sq M. Front house – 500 Sq M and back 2 blocks are 250 Sq each then $25K will be your cost base on the rear blocks.

When you have completed building the 2 new houses GST will be paid on the margin between the Sale price and the $25,000. Along the way you wil have course claimed your GST credits from the construction.

As the front house is second hand you will not be liable for GST however will not be able to claim the GST credits for any expenditure made on the front house.

When it comes to IT or CGT depends whether the ATO classify this as a living for you the summary Westan gave is good enough.

There is of course nothing to stop you building the 2 rear houses and moving into one of them and then selling it down the track and classifying it as a PPOR. If you did this you would probably build 2 slightly differently and direct the costs to the property you were going to live in.

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found