All Topics / Help Needed! / Extending Existing Strata Building

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of MichaelPMichaelP
    Member
    @michaelp
    Join Date: 2010
    Post Count: 7
    February 15, 2011 - 11:05 am

    Hi,
    A really green question here….

    I'm one of a small group of owners of an existing strata complex in Perth.
    There's a large area of unused land to the rear of our complex and I've had this idea to building an additional 2 units on this land. I've never done any developing/building previously but before I approach the other owners to get their opinions I would like to ensure that this idea is at least feasible from a financial/legal/planning etc perspective….and I don't want to spend any/much money to do this.

    As part of my feasibility assessment I've looked at the dimensions of the area and confirmed that a building here will tick all the boxes in the local planning codes, I've looked at locations of existing underground services and don't believe there will be issued in this area, and I've roughly priced the job and compared this to expected selling prices for the units to see if the project is financially feasible.

    I don't know what to do next.

    I would like to get a second opinion on the expected cost (including all the hidden costs I'm sure I'm unaware of), and confirmation that I've interpreted the planning code requirements correctly but who do I ask? A builder? Developer?
    My main concern is that I will have to outlay substantial funds only to find that the project isn't feasible.

    What's the process?

    Thanks in advance.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    February 15, 2011 - 1:18 pm

    only a couple of hurdles: you may need 75% or more of owners corporation to agree & pass a special resolution; all owners will be your development partners; the strata cannot borrow, so all owners will need to contribute to the project; a new strata plan will need to be prepared; the entire building may need to be brought up to BCA compliance; will the additional buildings exceed the allowable fsr for the site; council contributions etc.

    You may need to engage a town planner in the first instance.

    Profile photo of MichaelPMichaelP
    Member
    @michaelp
    Join Date: 2010
    Post Count: 7
    February 16, 2011 - 11:34 am

    Thanks Scott.

    I've considered most of the items you have mentioned. The only one I'm not certain about is if the existing structure has to be brought up to current BCA standards. Would this be a council requirement?

    Speaking with a town planner may be a good idea as a starting point. I'll investigate further.

    Michael

    Profile photo of MichaelPMichaelP
    Member
    @michaelp
    Join Date: 2010
    Post Count: 7
    February 16, 2011 - 11:52 am

    Another question:

    I was thinking a small deposit from each owner would be sufficient to fund a construction loan and pay for the works. Would this be the best way? How could this be structured to minimise capital gains tax upon completion.

    Michael

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    February 17, 2011 - 12:26 am

    Unfortunately the land is common property hence cannot be used as security for the loan ie the land cannot be sold separately from the rest of the building – so the owners will need to finance the deal from their own resources.

    Profile photo of MichaelPMichaelP
    Member
    @michaelp
    Join Date: 2010
    Post Count: 7
    February 19, 2011 - 1:19 am

    Surely we could use the land that is not common property as security for the loan?

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.