Greetings All,
Too lazy to troll thru search engine for this topic previously only to find the answers/suggestions are not applicable so will start fresh and be prepared to cop some agro for my tardiness!!
* Ready to buy land and build single home with builder/partner. Checking out Saturday and then proceed ing with Deposit etc.
* Need structure/partnership???? to begin???
* Buy land outright and then take deeds to different bank for “build ” finance or finance all in one parcel at same bank???
Have enough equity available for either step.
* Bank to site plans and value finished product for loan amount determination???
* What else to be aware of??? Imagine there will be heaps so do your darndest and “Hit Me With Your Best Shot” “Fire Away”
* Will structure determine Capital gains , or any GST to pay with one or other structure???
* Settlement or Exchange , relevant date for Land Tax????Thats enough for now,
‘Cheers LenHi Len,
You asked to be swatted.
What is your aim? To build and sell?
How much can you make? 20% ??
Where I am, I will probably pick up 10 % over the next 18 months just by waiting for the market to drop.
There you are – that was my best shot!Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
hi len
I got my bat out for this one.
single house build and sell flick or ppor all are different.
builder/partner any cash from the builder 50/50 again different structure.
can you option the land to get the da thru (min cost).organise finance first to do land and build together or double valuations maybe required.
not one for buying out right and them re valuing unless you have change it in some form da, built or added value check out a couple of lenders different banks are better or worse in different areas nab are good with small developemnts put not on things over duplex, suncorp ok on dev sites but want 1.5 the value of the site but neg direct on the rate, mostly over 10 units.
bank west are grabing market share so shop around.
hope this helps if not.join a discussion group If in sydney There was one recently.
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Okay giddo,
the aim is to build and sell-yes.
I believe the return is there and still doing sums and realise that doing for less than 20% return is waste of money so on those figures and that advice have found 2 blocks of land for 2 separate house builds. Know land price and build costs to be clarified , now am wondering about other costs, eg CGT etc. Any more info please??
Cheers Lengees Len I think I am just feeling unmotivated at the moment and reckon it it is easier to pick up 10-15% for doing nothing but waiting, than to going thru the uncertainty etc.
Sounds like you have a handle on what you are doing though.I have seen your name on this forum before and you are probably a more experienced investor than yours truly.
CGT – 50% discount if in your own name I think.
Your tax rate when you sell will determine CGT. Have a lazy year when you sell.
So much to think about eh??!Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi giddo, Do not really have the time to wait—looking to finish full time work in 12 months–and also do not want to wait–looking forward to keeping busy doing other things beside working . At the moment it is only 4 days per week and that is 2 days too many. Cheers Len
Hi Camder,
I haven’t developed before but have been looking into it. Thought I’d throw my 2 bobs worth in anyway.
I would imaging if you are doing this as a partnership you would want a clear contract between the 2 of you from the outset. CGT discount only applies if it is in your own name and you have held property for >1yr. Hence need to weigh up cost of holding vs CGT discount.
If you decide paying full CGT is OK for a quick sale then a company structure would allow simple distribution of profits, limit tax payable to 30% and provide some security too. Could also claim GST for build (although I presume you would pay GST on sale too – I haven’t worked this part out fully yet).
Good luck! Let us know how you go!
Cheers,
Jenny
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