Congratulations on finding a property.
You have now done more than most!
Maroondah is not difficult to deal with. As with all councils they have a set of guidelines to work in.
Local planning controls
Victorian Planning Provisions
The difficult part, of course, in understanding these various guidelines and navigating a successful path.
In essence you have two major issues (each of many parts) to contend with:
The investment strategy – the financial goals
The development strategy to achieve those goals.
You need to do work on both of these parts and ensure they come together with the right structure.
Seek professional advice, especially early on, to ensure you get the…[Read more]
Dtermined, add it all up and see if it makes sense.
You need to understand the fundamentals before you approach a lender.
If it is profitable and secure, and makes sense, you should be able to fund it.
Best of luck with the project.
If you are not settling until completion this is straightforward.
You enter into a contract to sell that which is described in the TPP.
Stamps are payable on the value at the time the contract is entered into – thus the benefit of sale off plan.
As part of the JV agreement, the parents could allocate part of the property to you by splitting the title as tenants in common. There are tax issues on which you'll need advice.
christianb replied to the topic Is there a difference between Strata Title property and Stratum Titled? in the forum Help Needed! 6 years, 8 months ago
Great summary Xdrew.
A Section 173 would be required if part of the property is to be sold before the subdivision is completed.
In the simplest terms, it is an undertaking to complete the subdivision in line with the Town Planning Permit.
Consider making your own positively geared property.
Find a house with adequate land to build a second dwelling, ensuring the planning overlays are accomodating.
Assume the house is purchased for $500,000 and can be let for $500/week.
Spend $250,000 to build a second dwelling behind.
At this point, a number of things can happen, but here are two…[Read more]
christianb replied to the topic Getting your development off the ground – All the information you need. in the forum Value Adding 6 years, 8 months ago
I am sure Ash will steer you in the right direction.
I am reading between the lines a little here, but I thought I might give you something to consider.
In order to subdivide land you will require a Town Planning Permit (TPP)
Usually, in order to get your TPP council wants to know what you will do with the land.
In this case, the land is…[Read more]
Plenty of good advice there.
Here's some more that you may find useful.
Understand what you want and have a plan.
Understand the context you are working in – from zoning to re-sales.
Have an understanding of the process, even if someone else manages your project.
Budget for $1,500/m2 delivery costs.
Get good advice early. The profits…[Read more]
christianb replied to the topic Getting your development off the ground – All the information you need. in the forum Value Adding 6 years, 9 months ago
Nice work Ash.
A few things you may wish to consider:
Our clients are finding two dwellings much simpler to finance than three
Make sure your structure suits your sales/retention strategy
Keep a cash buffer from the start – it's easier to solve problems quickly
Include all you can in the build contract – little bits outside the contract amount add…[Read more]
If you are planning a property development there are three major disciplines:
There are lots more people involved, but the three above are the key.
These three elements need to come together to deliver your project.
Before getting too far down the track, the first step is to talk with a good town…[Read more]
I hope it all works out – for both of you.
You may well be starting again, but you have a great advantage.
What you have learnt along the way. If you have done it once….
Time to think about what happens next, and to do your research and build a plan
I wish you all the best with this endeavour.
You have some great advice in there.
I would offer a few points for you to consider:
Establish a budget and respect the budget – if it can't be done within budget, don't do it.
Renovating (I reckon) is fun, but keep the emotion out of it, its essentially a large transaction.
Have a plan for…[Read more]
The proposal should be robust enough to absorb some overrun.
A budget of $1,500/m2 is an adequate starting point.
Here is a simple equation that will account for roughly 20% margin after expenses:
1/3 for land (including stamps and purchase costs)
1/3 for development (including documentation, building and peripherals)
1/3 gross margin
If the amenity is good – transport, shops and activities.
And the area is close to the CBD.
Then great things often happen.
The artists are attracted to cheap rents.
The artists bring the commercial creatives.
They, together, bring the people who want to be near the action.
Then, off it goes!
This happens in most cities, and it's a moving…[Read more]
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