[PimobpiParticipant@pimobpiJoin Date: 2013Post Count: 60]

November 23, 2015 - 12:05 am

Oh OK, a Company is considered as a “non biological” individual & can make purchases in the same way as a “biological” individual.
……whereas a Trust cannot do the same because a Trust is considered simply a relationship between entities (not an entity itself).

Sorry to put it so crudely but that’s the impression that I get from your explanation.
Hope I got it now.

Regards.

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November 22, 2015 - 4:33 pm

Hi Terry,

Thanks for the 1st part (of what I hope to be many more).
If property is to be purchased, should an entity nominate the name of the trust or the name of the company (or both names) on the contracts?

I’ve never purchased within a company/trust partnership before but I think that I’ve seen just the Trust names on contracts.
Have you seen this too?

I must be wrong, as you say that a Trust is not a legal entity.
Maybe contract details are added at a later date.
(I think that some entity name changes are still possible in VIC, after signing the contracts). I don’t know about the other states but I’ve heard that the purchaser must buy in the name of the nominated entity (within contracts) when in QLD. If not, there is a very good chance that Stamp duty will need to be paid again.

Cheers.
It’s always great learning from you.

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November 12, 2015 - 5:15 pm

Hi,

You want to buy land/land with an old house and then build 3 villa units (2Bed 1bath 1Garage) and then sell them.

I would like to give you some food for thought whilst you find the financial answers that you are looking for.

What if that particular combination is not what best suits the area or does not give you the best return?
Will you look at another block, a block that only works with that combination?

Developers would think slightly differently, they find the formula to a block rather than have a pre-determined formula to follow.
Why not find a block & only then start working on figuring out it’s max potential (to best suit the area & your budget). Then make plans to achieve that (once you feel comfortable that it’s the one).

It will open up more possibilities for you & keep you learning with every piece of land that you find because the project is not merely dismissed for not conforming to one template. If you dismiss it, it’s because it did not stack up fundamentally. You are learning with every rejection you make, you are learning & gaining with every project you complete. You are setting yourself up for a possible win/win.

More wealth to you, have a wonderful & exciting journey as a developer.

Cheers,

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June 14, 2015 - 8:36 pm

OK, I’ll have one last bash at this one.
This is what I have found elsewhere so I don’t know how accurate it is but I think it best describes the GST situation:-

1) you build a residential property

2) if you claim GST credits throughout construction

3) if you sell, you build your gst into the price and remit back to the govt

4) if you keep and you have been claiming the gst, then approximately 12 months after the date that a tenant moves in and commences paying rent you must calculate how much gst you claimed on that particular property and pay it back to the govt

5) if you leave the property vacant then the point above does not happen

6) property is considered new for 5 years, so a sale during that 5 years will incur a gst obligation to the govt

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June 14, 2015 - 3:48 am

Actually I am now very sure that my above entry is extremely incorrect.
Hopefully someone with GST knowledge will assist.

What happens with GST if a newly created property is rented (because it cannot sell)?

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June 14, 2015 - 12:44 am

Hi & welcome, I hope that you get a lot of useful feedback for your particular situation.

I wont make comments regarding your decision to purchase property in Gladstone as I’m sure that you are not alone in making that move.

What I can reply to is your question regarding where to put in any extra money that you earn.

Generally the priorities of where to put extra money would go in this order:

Priority 1. Pay off Non-deductible debt first and in order of highest interest rate to the lowest interest rate.
eg: Firstly pay off credit cards @20% interest & next pay off PPOR loan @5% interest. Important Note:In regards to putting the extra money into PPOR, it is much wiser to put the extra money into an offset account connected to the PPOR loan rather than to put the extra money directly into the PPOR loan itself. The reason for this is that putting the extra money into the offset account gives you many more options later on if you so choose them. The interest savings are exactly the same when you are putting money directly into your loan account or putting money directly into an offset account but you have the future option of accessing funds from the offset account without requiring permission from the lender – it is considered your savings. On the other hand, if you were to put the extra money directly into the PPOR loan, you would need to make a bank application whenever you would want to access these extra funds any-time in the future. **You may not need those extra funds available to you now but, all things being equal, you should take the path that gives you the most freedom**.

Priority 2. Pay off Deductible debt in order of highest interest rate to lowest interest rate.
eg: Firstly put the extra funds into an offset account for an IP loan @6% interest & next you should put the extra funds into an offset account for an IP loan that’s charging @5% interest.

The reason for the above is that deductible debt does not hurt your pocket as much as non-deductible debt can so non-deductible debt should be paid off first.

Does this make sense to you? (I tend to write a lot and overuse words – my apologies).

Cheers & hope it all goes great. Wishing for more wealth to you.

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June 13, 2015 - 3:54 pm

Solomon10 wrote:

Thanks Terry,my understanding now is, if sold in under five years GST would apply,and profits after GST and costs would be added to taxable income for the year. If sold after five years of being rented, no GST would apply and CGT should apply instead of income tax. Seems a better way if can afford to hold them for six or so years.

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Hi Solomon & all,

I am quoting your above comment as I believe that the GST situation is a little more complex than simply holding a development property for 5-6 years and then not paying the GST back but then paying CGT with income tax. (BTW, I am really hoping that I am wrong) & I want the GST experts on this forum to prove it. GST is complex so I am hoping that there are new rulings or that I have misinterpreted the law.

There are only 2 ways in which you can hold a development property for more than 5 years & the outcomes of both scenarios are very different indeed.
Scenario 1: You hold onto the development property & rent it out for more than 5 years. You do not actively market it for sale during that time. ***Not marketing the development for sale (due to soft market or whatever other reasons) is deemed by the ATO as a change of your intention***.

Consequences for scenario 1: You are forced to make decreasing GST adjustments for the GST credits that your received during the construction phase. I believe that the time period for this adjustment is approx 12 months after every GST credit was claimed therefore you would have paid back 100% of the GST credits within the 1st year of holding onto the development property. If you undergo this “adjustment” & pay back all of the GST & you actually end up selling the development within a 5 year period then the ATO allows another type of GST adjustment (increasing). This increasing GST adjustment basically gives you back an apportionment of that original GST credit depending on which year you sell. 2nd year sale give you back more GST credits than a 4th year sale as the longer it takes to sell the closer the property is labelled “used” and not “New” stock any longer. (If you sell the development after 5 years then you are liable for CGT just like any “used” stock is treated.

Scenario 2: You hold onto the development property & rent it out for more than 5 years. In this time you actively market it for sale.
Consequences for scenario 2: In this case of actively marketing the development for sale, it will not matter how long you rent it for, the GST is never wiped out. The 5 year count down only starts when you are not marketing it for sale whilst you rent it. In this scenario you can sell the development after 10 years and it is still considered new stock. GST & income tax rules apply.

The difference to both of the above examples is your intention with your actions because that determines whether or not the ATO deems that your intention has changed. From what I can see with your plan, there is no GST free situation that will be beneficial. (Either it is paid back in full soon after construction or anytime after). I used to believe that a developer could simply hold onto a development property & rent it out for more that 5 years after construction and the GST would be wiped (without being paid back earlier) but I cannot find/prove this by searching the ATO site.

Hopefully somebody will prove me wrong but I’ll be very happy with the egg on my face (for just this time).

Cheers.

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June 12, 2015 - 5:55 am

Hi, your post……”The current situation is this:
PPOR – Value $430k, Mortgage $400k. Subdivision potential for 1 into 2 lots with one a corner duplex (approx. $80k total cost) or a 1 into 3 lot reconfiguration (approx. $120k), ideally we would like to do this not sure how to achieve it though with other financial issues.”

My reply……Why is the cost so high for you to subdivide your PPOR land from 1 lot into 2 or into 3 lots – $80K & $120K???. Is that what the new lots will be worth after subdivision or is that the cost that you have been quoted to actually do the subdivision? I would have thought that a cost of $10K would be sufficient to subdivide into 3 lots.

Have you heard of “Backyard Buyers”? I think that they are only based in VIC however QLD could have an equivalent business. I cannot endorse any businesses such as these because I have never used them but the process goes something like this: They give you a free assessment of your PPOR block & its subdivision potential by using their experience/knowledge & by engaging the local council, town planners etc etc. They tell you how much money that you will get from them if you decide to subdivide by using their services & they make a contract if you agree. I think that they give you the total money upfront (before they even subdivide) and they show you the build plans so that you know what’s being done on the new lots next door!

They then pay for and organize for the subdivision whilst they build the dwellings on the lots (in the mean time they look for a buyer that wants a home on those lots). At this stage it’s all their responsibility, your part ended after you received the money. They build the home and sell it to that new owner.

Supposedly they make there money by giving you less money than what the new lots are worth (but still a good enough figure that you will find it difficult to refuse it). They are the “connector piece” in this puzzle. They have a seller that wants money, they have the know how and money to create & buy the lots from the seller. They have the customers that trust them to build and sell them a new home on that new lot. I think that it’s a smart move to search this up & investigate whether right for you or not. It may get you out of trouble (or out of some trouble at least).

Be aware that the bank will be involved as subdividing your PPOR will lessen it’s value (most likely) and it may not be something that the BANK will approve. The business will help you in these circumstances as they will show designs, data, values etc. You will also need to be aware that you are not really winning much here, the subdivision business is winning the most. You are selling parcels of land under value but to a sure buyer & you have to make sure that these people are completely legit. I have read up on it a while ago and just thought that it may apply to you. Have a think. Investigate it. Maybe it’s an option for you. A little different from the options listed above.

Cheers and best of luck.

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June 11, 2015 - 5:20 am

All great advice – in particular “Catalyst” recommending to start at the local library & “Jacqui” pointing out that if you start with understanding your financing ability it would save you so much time.

You’ll find that you will be able to answer your own question as to whether your single income will be enough to commence. You’ll also find that every answer to every question about investment will be: “it depends”. Eg: Is a single income of $1 million enough to commence with property investment? What if that person spends most of it on fast cars & on gambling or is very sick and needs to spend it on medication? It changes everything. Some people earn heaps & live pay to pay, others earn very modest amounts and have investments. Of course the opposite is also true, some low income earners waste all their income & some high income earners budget wisely and have their money work for them.

I’m still learning, reading tonnes of books & also putting some of it into practice. I don’t think that should ever stop.
I post very large replies mostly because I am a pleonastic but it also helps me learn that way. Writing about stuff helps me question whether I really believe it or not. I am sure that the length of my posts have annoyed some members but I have not had any complaints so far. :)

The library will give you a much better sense of what type of investors are out there, what type you are or want to become. It will also help you to know some financial ideas & products. Please remember that books cannot beat talking to a broker for that kind of financial detail. Brokers look at your situation in particular & find the right financial products to suit you. Books are written for audience masses, brokers are talking to you alone.

Many books are outdated so they have details of loan products and ideas that no longer exist or no longer work in the current environment – I still think that these books are beneficial for you to read as mostly it’s “Chew On The Hay, and Spit Out The Sticks” type of learning. The books cover the full spectrum of all types of investors so some books will say:- do only this, others will say:- do only that – and the rest will say:- do a bit of both. There is nothing in books that’s a one size fits all remedy for investments. What works for one investor may not work for another (even if given the exact same property with the same expenses). We all have different personalities, risk profiles, needs & goals.

A book that I have read a few times is called “47 Biggest Mistakes Made by Property Investors and How to Avoid Them”. It opened my eyes to a few things that I never thought of before. I’ve also read a lot of books by Robert Kiyosaki & from Steve. I used to borrow 5 to 10 books at a time. I didn’t read every page on most of them. I’d start reading chapters that I thought interested me more and progressed from there. No one remembers everything that they have read in books, but what they have remembered is what they found important. Don’t use them as manuals because they are not – some books are titled as if they were manuals & some authors are very adamant that they are completely correct and that everyone else is wrong. Don’t believe anything that you read – (it may all be accurate and true but you need to follow up with your own investigation of what you have read by speaking with brokers, accountants, lawyers, agents, family, friends etc). You are teaching yourself about yourself.

An interesting thing I read once was to ask yourself “WHY” use property as an investment? Have you chosen property over some other type of investment for any particular reason? Is it because you think that it is safer to invest in property than to invest in shares or investing in something else? You need to question that very thought. All investment is risky business when your education is low. Don’t look to learn what you do not know just yet, start with questioning what you believe to be *absolutely true* and then find the answer. Play the devil’s advocate with yourself & also when around others in conversations about investment. It’s challenging to do but you could learn heaps. It’s not like school where there is only one answer & you are either correct or incorrect.

I have learnt that investing is NOT done in property or in shares etc. Investing is done in people – as in engaging great accountants, bankers, friends etc. I think that’s what “Catalyst” meant regarding Networking being key.

Cheers & wishing for even more wealth to you.

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June 9, 2015 - 3:18 am

Hi Richard,

I don’t think that Josh believes that NAB will do a Residential Loan for 4 units – He may have thought that Westpac setup Residential loans for 3 units – My reply was to point out that NAB will go Residential lending for 3 units or less whereas the other major 4 banks cap their Residential lending to 2 or less dwellings per development. (I guess that there may be preferential treatment for some valued customers).

I think that I confused you. :)

I didn’t know that Commercial loans could often be charged the same rate as a standard variable rate loan – that is good to know.

Advice that I want give Josh is not to be too caught up in just the interest rate anyway (even though it is a very important factor)…but it’s just one important factor to access in the whole scheme of things. I think that the right loan product may sometimes have a higher interest rate or have something else that could be perceived by some as being negative, however the right product would fulfill 90% of the other important criterion that the customer needs.

I am really hoping that you agree with my last statement, if not then I’ll have to hit the books some more as your opinions are mostly correct.

Cheers.
Pimobpi.

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June 9, 2015 - 12:46 am

Hi Jose,

Welcome, I am sure you’ll gain heaps of knowledge here – although, you’ll have to educate yourself further & educate yourself from many other sources if you want to carry out a successful development project.

You do not necessarily have to go with Commercial lending for a 3 lot subdivision. I know that NAB offer Residential loans for 3 or less lots. I am not sure about the other major banks but suspect that it is Commercial lending for 3 or more lots. There are many other lenders than just the major 4 banks, ask your lender (for the Frankston property) whether they would setup a residential loan or not.

Also, it’s not just the covernants that you have to ask the council about. Has anyone else subdivided in close proximity to your property? On July 2014, the reformed residential zones came into effect across Victoria. All residentially zoned land is now included in one of the reformed residential zones and the previous Residential 1, Residential 2 and Residential 3 Zones have been removed from the planning system. Please investigate this and have a chat with the council for them to explain what zone you are in – What this means is that what was done in the past regarding subdivision in your area may not necessarily be what can be done now.

If a 3 lot subdivision is possible on your block, the costs will vary but I’d say that a Planning permit may cost you anywhere from 5K – 10K. Engineering 5K, Subdivision into 3 lots 7.5K. Contribution fees may be 2% – 5% of your land value/purchase price. Power & water Levies 6K total. There are other costs like land tax, holding costs, council fees etc to consider.

You will also need advice regarding whether you are carrying out a business enterprise or not (even if your intention is not to carry out a business enterprise). If the ATO deem that you are carrying out a business then GST & income tax may be applicable after resale. You will need legal advice on this.

I’d start with the council as all of the above information becomes irrelevant if subdivision is not possible. If all OK, I’d speak to an accountant about your ideas, then to a lawyer. Then seriously look at what you believe would be the right design/buildings on your block & why you think that. Maybe 2 lots are more profitable for you than 3. You’ll need help from a Draftsman or Architect to gain Planning approval. Then get quotes on how much it will cost to build the units & whether it is worth your while to finance it. You would need to look at whether building is something that you want to go through & whether it is bringing you closer to your goals or whether selling the block with the Planning permit would be a better option. Then look at gaining your finances.

I am sure that are some other forum members that will disagree with my above order and that’s OK. I have found that being a “Developer” is NOT about subdividing land into as many lots as possible and it is NOT about building cheaper dwellings to match your budget. Maybe that was OK in the past as circumstances were very different then but that approach is very dangerous now. What I have found is that you need to study the area really well and look at providing the area with exactly what is required to be most profitable for you & to be most beneficial for the location. (I would think about this before even buying the block, it would be my reason for buying it or not). Once you buy & have this information, act to gain a Planning permit then I would ask myself one simple question. Does providing this product fit into my budget? If the answer is “YES” then go for it. If the answer is “NO”, sell the block with the plans for someone else to provide the product instead. What does not work for you may work for other developers and vice-versa. I think that doing it any other way ends up with either providing an inferior product or ends up with over capitalizing in the area – Both of these situations should be avoided as both will eat into profits & both could even create losses for you.

Cheers & good luck.

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June 8, 2015 - 8:20 pm

Hi Josh,

I am guessing that Westpac would treat each customer differently, my findings were that Westpac will make a Commercial loan compulsory for 3 or more units (ie: Only 1 or 2 units are in the Westpac Residential space).

I may have misunderstood you but it sounds like you were under the impression that Westpac will be OK with a Residential loan for all 3 units.

I found that only one of the big 4 banks did Residential loans for 3 or less units (Commercial loans for 4 or more) – that was NAB. I am not endorsing any banks in particular, just telling you what I think to be the case.
Best that you have some initial consultations directly with a broker as they will have up to date information for you & 4 banks are hardly an exhaustive list of the institutions that would set up loans. Some brokers have already replied to this post.

Also, it is great that you are thinking about how to improve your property position – I think that is key. Whether you move towards having 5 or 4 units will depend on the outcome of the numbers that you crunch & whether it gets you towards your goals. My advice would be to keep available as much buffer as possible (as an insurance, in the event that you may need it). Commercial loans do have their use – your circumstances have probably changed during the years – you have outgrown your loan and see a better possibility by utilizing a tweak. Welcome to property development – it’s never static, more like an evolution.

I hope this helps you.
Cheers & good luck.

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March 31, 2015 - 8:29 pm

Hey Jamie,

OK, so trips to Disney-Land are not deductible, I’ll book Hawaii instead. :P

Thanks for adding extra input – clever.
The 50K will help fund a small portion of my intended development project.

I was not originally looking to extract equity – I was chasing a lender that offered residential loans for development projects greater than 2 dwellings on the same plot. It so happens that I can release some equity from my plot & I was looking at the best way of doing that.

I originally thought that equity could only be released as a LOC setup until I was offered my equity as a deposit into my offset account.
I now understand that the purpose of a loan and that the intention of a loan are 2 very different things. I’ve simply gone for the LOC (as Terry has suggested) & will use the funds for nothing else but for development purposes.
BTW, Terry is a gun!

Cheers Jamie – I’d like to add that many forum members (including myself) are learning tonnes from your entries alone. Can you download all of your knowledge to a USB stick? Future industry: Brain Income streaming *grin* Keep well.

[PimobpiParticipant@pimobpiJoin Date: 2013Post Count: 60]

March 30, 2015 - 4:42 pm

The ‘golden potato peeler’ example is a classic :).
Although my question was unclear, you have answered it well.

Take care.

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March 30, 2015 - 3:12 pm

Terry or anyone else in the know,

Funds taken from the LOC & used for investing would incur interest & usually at a slightly higher rate.

I understand that mixing money that’s coming in and the money coming out of the LOC is very unwise: such as depositing my income in the LOC and then using some of that money to buy groceries etc.

Is it correct to say that I pay back the LOC in part or in full, then only extract money from it again (in part or in full) for other investment purposes?

Thanks.

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March 29, 2015 - 12:20 pm

Thanks Terry, I will definitely take your advice.

I suspected that something didn’t ‘feel’ perfect about the scenario.
I would use that extra equity to help fund a construction loan (on the same block) so I have to get it right from the start.

Cheers & wishing even more wealth to you.

[PimobpiParticipant@pimobpiJoin Date: 2013Post Count: 60]

March 11, 2015 - 6:13 pm

Hi,

Congratulations on expecting your 2nd child.

Sorry about the delay in answering. I’m going through forum messages & looking for ones that have not had a reply (like yours).
I think that I can add some value to your entry.

I cannot give you advice regarding whether an online bank account would be the BEST option for you to temporarily park your money in whilst you look for a home to buy and I cannot give you advice on which online bank account would be the best.

What I can say is that I’ve used one before and it worked well for my needs (one from the major 4 banks). I am fairly certain that most of the leading banks have a similar working online bank account setup so I wouldn’t be too concerned. I think that it would be wise to read the online info about them as you may find one that suits you best, maybe one from your current bank is more convenient for you.

If you decide to go down this path and use an online account, think about who’s name you will want to open the account in. If you open the account in the name of the spouse that earns the least amount of income then the interest, that you earn on the account, will be taxed at the lower income earners tax rate (which is advantages for both of you). So, if you are both earning a similar income you may want to open the account in both your names. If one of you is earning less now (or will be earning less in the future because they are staying home and looking after kids instead of being traditionally employed) then you may want to open the account in their name alone.

That brings me to the next point, I am sure that you could put your money elsewhere and possibly get a higher return on it, however, would you be able to take out that money if you needed it quickly?…….and does the higher return, on your investment, mean that you are also absorbing unnecessary risk? Online accounts seems like a pretty good option for you if you are trying to minimize unnecessary risks.

Food for thought: The only time that I wouldn’t park all of my money, in an online account of the spouse earning the least income, is when that spouse is at more risk of being sued etc. Asset protection is paramount. I don’t think that anyone can completely protect everything that they have but they can certainly minimize the severity of the event if their assets were protected before any trouble started. I mean “higher risk” spouses for example, persons working as surgeons etc (they may have more risk of being sued as compared to a person working in an office job for an IT company). All things being equal, the office job employee would have less risk of being sued.

Cheers & good luck. More happiness & wealth to you.

• This reply was modified 9 years, 2 months ago by  Pimobpi.

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March 10, 2015 - 9:26 pm

Hi Storm,

Welcome & I hope you enjoy the forum. There’s certainly lots to learn here.
I’m going through the unanswered questions and looking for the ones that I may be able to add some value to.

My experience & knowledge is certainly nowhere near most of the forum members level but I think I can help answer your questions.
Of course you will need to do your own research but I’ll give you some of my thoughts.

1. Approximate costs to get a DA may vary state to state, DA specifics and from using different professions however I believe that it can be done (in Victoria) anywhere from $5k to 10k. There could be different costings in Brisbane but at least you know what it could cost in Vic.

2. CGT exemption: You will need to have this question answered by a professional or by more experienced members.
There’s lots of topics on this forum regarding CGT/Family home so please research to understand it better yourself. My understanding certainly has a lot of gaps in it but this is some of what I have learnt so far…..

If you have no other principle place of residence (PPOR) and you live in your home then yes, that home is CGT exempt.

You mention living in it for at least a few months: I want to inform you that your PPOR is a “state of fact” so the amount of time that you are living there is only one aspect for consideration in determining whether it is your PPOR or not. The real measure would be things like whether you are receiving mail at that address, did you accumulate bills for utilities being used, were they paid for by you during that time, was a land-line phone connected, did you receive & make calls? I am not saying that all these things are a must but certainly they help prove that you are really “living there” and not just using the rules to save some CGT. 6 months living at the property may be considered as the bare minimum by some however the ATO does not really specify an exact amount of time that you should be living in your PPOR and that’s why it is merely a “state of fact” rather than choice.
I would like to add further interesting things..
Living in a property does not necessarily make it your (PPOR). Eg: Let’s say you owned 2 property’s, P1 & P2. You could keep P1 vacant, whilst you live in P2. Only one of these property’s, at any one time, can be nominated as your PPOR to claim the CGT exemption. An owner of these 2 property’s may choose to claim (P1) as their PPOR whilst they are temporarily living in (P2).
As stated above, just living in a property does not always mean that it is automatically exempted because it depends on which property is nominated as PPOR and only one property can be nominated at any one time.

I don’t mean to confuse you, I’m just highlighting that there are rules that need to be followed. Strangely there are the occasional times when the CGT exemptions may overlap a little between 2 separate property’s ie: if you decide to sell your PPOR and settlement of your old PPOR is done after the date that you have purchased your new PPOR home). In this case your new home is still CGT exempted even though there was a small overlap at the beginning. There is also some information on a 6 year rule for you to research on, you’ll find that there’s tons of info on many other relating matters.

3. I cannot recommend any town planners in Brisbane because I live in Vic however I think that a great idea is to ask your council which town planners that they mainly deal with and they will give you a list to choose from. They will not inform you who is best or worst, they will only give you a list. Go to a few and interview them and you’ll soon learn how much work they have done with your council and whether they had a hard time or easy. They will also be able to back up their comments with proof. Go to the one that convinces you by using their knowledge & experience.

Cheers & good luck, more happiness and wealth to you.

• This reply was modified 9 years, 2 months ago by  Pimobpi. Reason: Changed a few words that were repeated

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March 10, 2015 - 6:30 pm

Hi Freezer15,

Noticed that your questions have not been answered as yet so I thought I’d try.

I believe that it would be cheaper in price to go to mainstream builders and have them adjust their existing plans to suit your block however I have a few points for you to consider before doing that.

There are only a few mainstream builders that build more than 2 dwellings on the one title – even if your intention is to subdivide into 3 lots, they will not build on it unless you subdivide it first (which I would not recommend you subdividing before you build).

I know of one mainstream builder that builds more than 2 dwellings on a single title but I’m sure there are some others out there, certainly not as many as you think. I am not sure whether I can tell you there name on this forum but their name starts with B.

A benefit of going to a mainstream builder is that they may have completed display homes that suit your block and you can view them in real time – that will give you a great indication what the builds will look like in reality.
A disadvantage of going to a mainstream builder would be that they may not be specialized in building townhouses or undergoing projects to maximize the area of your land or they may not have a floor-plan that you like or that you believe is perfect for the area. These are important facts. Better floor-plans are needed especially when block size space is not abundant. Are they experienced with multiple dwelling applications for council planning permits? etc.

I would suggest you interview (free) an independent draftsman/architect first and get their basic opinions about what they could do with your block and what they have done with developments close by. Go knocking on doors of the developments close by and ask who they used. Experience counts! Then go to the mainstream builders and run through the process again with them. In the end, I am sure that you will choose the builder who gives you the best quality for your budget and the builder that you feel most comfortable with.

Also, some medium / smaller volume builders may suit you better. Do you know anyone who has used a builder lately and is very happy. Speak to them.

Good luck to you. More happiness and wealth to you.
Regards.

[PimobpiParticipant@pimobpiJoin Date: 2013Post Count: 60]

March 10, 2015 - 5:39 pm

Hi all, thought that I’d keep this entry from dropping off the radar.
Can a builder or a developer help? Sorry, but searching this site/net for answers does not help me.

I don’t think that I’ve stumped everyone with my questions………………..or maybe I have? *grin*

I would like to know how a developer or property investor may approach a situation where they would want to buy (non-heritage) land, that has an existing approved Planning Permit. The floor-plans are perfect, what if the colors of brick, color of roof tile etc were not desired?…..or that some external walls are rendered whereas the new owner may prefer to keep it bricked without rendering?

I understand that these changes are cosmetic but the answer is still important to me. I have seen codes on some Planning Permits that stipulate the type of brick, color, pattern etc. What are the consequences for using a grey brick instead of using an approved brown one? Is it a fine? Different consequences for every council? Does the entire building get demolished as the brick color does not meet the brick color stipulated in the Planning Permit? Ok, that last one was just my joking around………I hope. *gulp*

Would it simply be taken care of by the contracted builder to submit a “Planning Permit amendment” on behalf of the new owner or would the Builder just need to make an application for a “Building Permit” that stipulates the new colors of brick instead? Or something else?

Regards.