Forum Replies Created
How is a company safer as a trustee? And why do you say only 1 director?
Terryw wrote:Its still possible to claim the interest personally by using a unit trust – but this offers no asset protection and is inflexible.I would also suggest a discretionary trust is probably the way to go.
There are also land tax implications to consider. eg. In NSW there is no tax free threshold for land owned in a discretionary trust.
Can you explain why a unit trust offers no asset protection?
Are you building yourself or employing somebody to do the job? If employing somebody, they can take care of Council affairs for you.
Generally speaking I believe it’s better to just seek approval from the local government as they will certify the safety of what is being constructed. If you are renting or selling the house at least you can say its ‘Council Approved’. The other thing to keep in mind is that your insurance company may not honour a claim if you have unapproved structures involved. If you did need to get some kind of formal approval, the cost and timeframe is minimal, as it would just be a building licence and no planning approval would be required if its only internal.
Ryan
hahah @ cartoon, but I agree with sapphire101, it appears its just the usual reactive defensive government response, when will we ever see some decent leadership that stands behind what it believes in…
You have to look at the options. R60 = 180sqm average lot size, so you could potentially develop three dwellings, however there are design limitations (such as the frontage width as you mentioned) and it would probably result in a multiple dwelling scenario to achieve this… you may make money on this or you may not depending on the building costs versus the potential return.
If it was me, I would continue to build what you were intending to build, you will still prosper despite the proposed increases in residential density.
Ryan
Subdivision is a straight forward process that relies on what your property is zoned and the requirements of the local government and state government whether or not you can subdivide.
Generally you should allow around 12 months from application to titles for a straight forward subdivision. Costs vary depending on the site, there are costs that apply to all subdivisions such as application and government fees, surveying, power, water and sewer connections, construction of vehicle access and site works.
Some builders will take you through both subdivision and building processes but most like to only focus on the building side of things.
If you would like more information specific to your property you can email me.
Ryan
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