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Great advice Terry,
The only problem i see with trading company is, if i don't own any assets under that company it will be hard to get finances for new properties. But i will definitely look into trusts.
Another question when you have time,
If the building company is trading for few years and has its own builder's licence number, and does couple of projects, and after 4 years i close it down, bring all figures to 0, what will happen to the warranty for those projects completed? If something goes wrong with those houses, would fair trading seek me personally even though that builder's licence number and company don't exist? Home warranty covers when you disappear or die, but what about when company doesn't exist any more?
Thanks Terry,
So it is much safer to have two companies, one for everyday business and other one for investment properties, cars, PROP houses, rather then hold it all under my personal name?
This one developer that i know has 3-4 companies, and each company owns 6-7 properties, so this is probably the main reason why he does it.
So what happens with 7 year ban after you go in liquidation, does that mean you can continue being director of the existing companies but you cant open up new ones in the next 7 years?
Just out of curiosity, will the bank give you loan of 100k or your cash out (no loan) in her case?
Just construction costs, thats your average cost to build two townhouses approx 150m2 each
You keep on mentioning subdivision costs, but i think you will only be able to strata title them in order to sell them separately.
To subdivide the land is a complex, costly and time consuming job, and i think you cant do it on that block of land.Im a builder and i priced many of them, so trust me stick with those figures, they can cost you more but less.
Price may depend on many factors, but without me knowing any of them, thats your starting point.It could be anywhere from 120-180sqm
What you have is a good size, and as i said its all up to the architect.
I've built some properties where i felt sorry for people spending all that money on such a bad design house.To fit two townhouses you need at least 600+ m2 of land, most councils require minimum 900m2 block of land in order to be subdivided, unless you are in inner city area. But you better check this, if this is your intention.
There are heaps of rules and regulations out there, do your figures first, its a night mare.
Two townhouses will cost you 450k to build approx, will you get your money back?
Its always good to start with renovations, and than take it to next stage.
Be careful you don't end up like Filip and Nikola Butkovic, thats what they did, vendor finance with no licence, and now they are all over the net.
I would make it 3bed but third bed can be small, as long as you can fit bed in there and small wardrobe it will sell as a bedroom, and thats what counts, but two beds must be good size, dont make them all small.
Trust me property valuers and REA when valuing your property ,they compare how many beds, baths is in there.
I've just quoted a granny flat 60m3 and its got 3beds so im sure you can fit 3bed in 132m2 but it all comes back to the draft person, sometimes the plans are really bad and you cant fit it.
I would check DA approved plans to make sure that builder has made those changes, it could be that you are looking in Agents plans, or old set of plans which could of been amended.
If the builder has made unauthorized changes, than you could argue it, but i would just request extra works to be done in order to accept it, gates, screens, footpaths or something.
Also i would get Inspector to do a defect list on the whole house, and once all fixed than i would sign the paper.
You will be surprised how many defects is out there, regardless who the builder is.Good idea, there is no many books out there with similar topic, i'm sure it will sell well.
Its also good for us removalists, the more you scare the owners, the more work we have
