All Topics / Help Needed! / Building a new house

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of chillerchiller
    Participant
    @chiller
    Join Date: 2010
    Post Count: 11

    Hi all,

    Just decided to build a new house on my block of land and rent this out.  Has anyone got a reliable and professional builder they could recommend?  Also my other option is to sell it as a house and land package but if I sell within 1 year I will have to pay CGT, is that correct?  I borrowed $100K to buy the land and now am looking to borrow more for the construction costs.  The land is held in my name as my husband's, what is the best structure for investment purposes?  ie. family trust?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Where is the land located?

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of chillerchiller
    Participant
    @chiller
    Join Date: 2010
    Post Count: 11

    Pakenham, Victoria

    Profile photo of smart_investorsmart_investor
    Member
    @smart_investor
    Join Date: 2010
    Post Count: 2

    Yes you will have to pay CGT if you sell it within 1 year…. better off to hold it for more than one year to 1/2 the cgt paid….i always recommend to hold than to sell.

    plus if you build the new house / rent it out…. after a year the house is more marketable as you have existing tenants (producing income) with the house.

    Profile photo of chillerchiller
    Participant
    @chiller
    Join Date: 2010
    Post Count: 11

    Thanks smart_invester.

    That's the way i was leaning towards.  Now I just hope that my broker can organise some money for me using my equity in the house.  It is worth minimun $600K and I still owe $250K so I should be able to borrow 80% of $350K ie$280K??

    I hope to build asap and rent out.

    Profile photo of spoonicusspoonicus
    Participant
    @spoonicus
    Join Date: 2010
    Post Count: 19

    Hi chiller, I work for a mid sized construction company and I would be happy to pass on my bosses email address. He probably wouldn’t be able to start until early next year but by the sounds of it you still need to finalise your plans.

    Profile photo of chillerchiller
    Participant
    @chiller
    Join Date: 2010
    Post Count: 11

    Thanks spoonicus, please pass me your boss's email address or website so I can check out their background.  I'm in the process of selecting a reliable construction company.  What types of questions should I be asking and what are the things to look out for when building a new house?

    Profile photo of spoonicusspoonicus
    Participant
    @spoonicus
    Join Date: 2010
    Post Count: 19

    I would be asking to see some of their work and ask to speak to past clients. I would want to know expected build duration and start date. You could ask if the builder has any ideas that could improve the job or cut unnecessary costs. You will need to find out exactly what is included and if anything isn’t included. You also need to realise that if you make variations after the contract is signed, then your contract is pretty much worthless. You might want to check on Insurances and length of time in the industry. Anyway his email is [email protected]
    I spend more time in the commercial sector but perhaps I will see you on site some time.
    goodluck

    Profile photo of chillerchiller
    Participant
    @chiller
    Join Date: 2010
    Post Count: 11

    thanks again for your helpful advice spoonicus.  i will be in contact with your boss soon.  i am also in the commercial sector but in property management.

    Profile photo of Positive ResultsPositive Results
    Participant
    @positive-results
    Join Date: 2006
    Post Count: 36

    Hi Chiller,

    If you are looking for a financial strategist who structures loans for investors send me an email and I will put you in contact with a reliable contact who will give you some free direction and then you can decide which way you want to go.

    Cheers
    Paul.

    Positive Results | Educating Property Investors / We Find Houses
    http://wefindhouses.com.au
    Email Me | Phone Me

    Helping You To Invest With A Purpose To Finish With Successful Results

Viewing 10 posts - 1 through 10 (of 10 total)

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