Hi a little unrelated to the intial post but nonetheless relevant to topic heading…I have been advised that to get a loan with no financial backing except a stable and high income I can form a discretionary trust structure, have myself as a beneficiary and one other person as a beneficiary (i.e. parents) who have a fixed security (personal home…[Read more]
Oh I should have made it more clear, the current owners have purchased a new house and want to vacate the property and they are afraid that if they lease it to someone else, the property may be damaged and consequently until settlement will be liable to fix any damage (due to a very long settlement). In fact the current owners have suggested this,…[Read more]
Hi, it would be ideal to prepare one master version for myself, and ultimatly be able to leverage of that for tailoring to meet loan and business partner purposes.Would you have some type of template which you could email me?thanks,
I totally understand what your saying there Terryw but I should have directed my question to AALLII. Thanks for your response, I have done my research and I do believe that structure to be the best for this particular project as it is for yours. Which accountant did you get to set this up for you? I don't have much faith in my…[Read more]
Although I am not advising you Brendogs, the structure I am using for my project wihch is similar in your work is where I have established a company to be a trustee of a discretionary family trust that will operate the entire project. I am doing this project with family members as such it is safer then to do it with strangers. Benefits are that we…[Read more]
At 5 Units it is more than likely to be considered as a Commercial lend as you have suggested with a maximum lvr of circa 70%.Lenders will only lend against current value (assuming you are purchasing an existing block of unit) or a combination of cost / end value if you are buying land and constructing.Either way your own…[Read more]
No, to be honest, I'm not concerned about the interest and whether it is capitalised. I actually prefer that as it will ensure I have more funds available incase something came up during the build process requiring funds which the bank will not lend against. The profitability of the project is quite high as such interest capitalisation vs payment…[Read more]
The property (block of land with a house on it) is being purchased initially as a residential property between the two of us and will be begining the development either a month later or 2. The land was say 500k, and say we develop at a cost of 900k, and final output = say $2m, does this mean we have an LVR of (500+900/2000) 70% or (900/2000)…[Read more]
Also another matter, do banks generally accept finance structures where payment for total interest is due either 6months later or at the end of the project upon realising the sale of all properties?
If you dont have a builders licence you will have to go owner builder.You cant do multi unit work as an owner builder anymore.
Yes you can. For example, buy a block with your brother/sister etc. You can owner build 2 dwellings on the block where each individual has one each.
I agree there is always a loop hole
Mattnz thanks alot, thats very helpful. The problem is I’m not at the stage of discussions with builders as yet, but its great to have an understanding of the process before hand.
Thanks guys,You are right, its important to have a buffer and I will likely include a buffer for risk in my calculations. however I'm intending to do a development with an overall total sqm's of over 860 which in turn means for every $100.00 it is likely to impact my margins by 86,000 (of-course net of GST).Thats why I'm wanting to know what…[Read more]
Would you know the very rough range for both garage and balcony? I understand they would vary however just a basic modern garage as you would see in many places around the country.Thanks
Now does your calculations for $1500 m2 differentiate between garage and balcony. I.e. What would be the costs say for a 3 bdr, 2 bathroom double garage, attached double story townhouse be for the following size:T'house = 135.15m2Garage = 36.56m2Balcony = 15.59m2TOTAL = 187.30m2Thanks,Also what do you think about the design size, i.e .is the…[Read more]
I thought a builders licence was only required for the heavy work, whereas things such as painting, landscaping, tiling etc was not required by a licenced builder specifically, please advise if my assumption was incorrect. thanks,
My father is a painter and obviously we can have the painting done ourselves, and the other areas such as landscape and plumbing and electrical we could organise for subcontractor to do directly by contracting it these things. Just wondering approximaltly how much discount can one obtain by having these things done one-self.Also if you engage a…[Read more]
Thanks Chrstian,does that price of approx 1500 inc GST include from start to end, i.e. carpets, all kitchen, painting, landscape, curtains, air cond/heating etc?It also seems so expensive when you consider a 21.5 square unit (200sqm) to cost approx 300k to build. I would have thought it would be low 200k.What are some ways you know one could…[Read more]
Hi All,I have spent the past 2 hours trawling through the Forums to see if I can find an answer to my question: "What is an 'accurate' and 'up-to-date' cost per square metre to construct a 200m2, 2-atorey 3 bedroom townhouse of a reasonably good finish in Melbourne"But to no avail.The answers I have found so far range from ar…[Read more]
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