Forum Replies Created
Hi
I want to be an owner builder (say builder manager). I can read drawings and coordinate people. One of my subdivisions has been approved and a notice of decision issued. The second one should have a result in 3 months(hopefully).
How can I learn to build so that I can be builder after say two projects are completed? What kind of course can I do? What steps should I follow in the two developments that are under process?
All help is appreciated.
Thanks
Rakesh
Hi All the wrap experts,
I need help to start on wrapping. I have a property which is being subdivided. Hope subdivision would be over in two months. The front house is valued at about 250k (East Melbour e Lilydale area) and rented for $240/wk. Weekly rent is too low for any meaningful installments with a low deposit.
How do I start?
All help wouold be appreciated.
Rocks
Hi
The data can be obtained from http://www.localwise.com.au
All real estate agents are members of this site. Just find out how you can pay for it and do your search. Its not that expensive.
Hi
In Victortia, http://www.reiv.com.au gives you suburb profiles free of charge. One of the real estate agents used to send me every quarter published data from REIV showing both suburb price movements and rental (including occupancy) details. So talk to a real estate agent and get data.
Rakesh
Hi resiwealth,
Quick turnaround means buy a house with big land. get subdivion done in 4-6 months, then sell off subdivided land after 12 months are over (for 50% rebate of capital gains tax).
I have seen one work out this way.
The only pitfall is if IP is in an area where planning permit is needed before subdivion, as that takes time. But if the old house is sited correctly and clear subdivision is done, its profit all the way!
So why can’t it work? Please give me pitfalls in this strategy.
Regards,
Rakesh
Thanks, this is what I arrived at. I am planning to develop a kind of model on this principle of subdivision and quick turnaround. If I can do one such thing a year, I dont need to work. Is this right and achievable?
Rakesh
I am doing two subdivisions in Melbourne. But I am finding that building a house on the subdivisions is a wastre of time and money, selling the land makes money. By building a house on subdivided land, you only recover the cost of subdivided-revalued land. So why build?
Any other person having similar experience?
Rakesh
Hi!
Project mobs build only standard houses, which are replicated many times, so are cheaper. Townhouses are normally custom designed, with specific planning approvals, not just building permits. So, project mobs don’t touch them. Is this the reason town houses are expensive?If you look at Metricon’s prices, even double storey houses of standard design cost about 40% more than single storey houses.
Someone please advise.
Regards,
Rakesh
Hi!
My accountant has advised that:
1) if your previous ppor was say A and you rent it out later.
2) you buy and move to another house B, but do not change ppor
3) You can change ppor to B, sell and pay no CGT
4) You can move back into A later on, stay for 6 months and sell again with no CGT.Just recheck once again with your accountant.
Hi!
I am doing two backyard subdivisions in Melbourne. I find that it is profitable to sell the land rather than build and sell. In Mooroolbark area of Melbourne, I can sell a 600 m2 back yard for say 120-130k. If I build a 3 bed basic house, it costs about 150k (with driveways/landscaping) totalling say 280k. I can only sell it for 275-280k. So why build?In Forest Hill area probably there is margin of about 40/50k for building a house and selling.
Does it mean a development outside say 30kms of Melbourne is only profitable for a builder owner or if only undervalued land is sold out?
Please help me clarify the thoughts.
Rocks
Hi Michelle,
I am in Eastern Melbourne suburbs and want to start in wraps/leasing? So how do you start? We have a negatively geared property but I can’t imagine people paying so much money weekly for Melbourne properties? All examples I have seen in books are for properties costing 40-70k. If properties are worth more than 300k, renting 240-250/wk, a wrap structure would probably not work?
Is this right?Rak
Hi!
While doing developments, I find it is easier and probably more profitable to subdivide land and sell and move on.
If I think of building by employing a builder, I find profits come down.
Is this correct or am I missing something?
Thanks
