4Unit Development (Perth)

yeah, but Im not in Bali... Im at work, working. Its a highly unusual situation where Im at work while someone is taking a holiday.
Its not fair, its not right, and I dont like it.

Fortunatly Im off in 1.5 weeks, so the worlds balance shall return to normal.

Blacky

 

Tax Tip - Get a proper valuation that is based on the development use of the former PPOR site. Based on the date when parents moved out. Taxpayers are allowed to get a valuation based on "best use". This will max the CGT free portion, reduce ordinary income tax and assist with the margin scheme later too if you are selling.

 

Paul
Thanks. We have a really great accountant (you know who he is @Ross Forrester ).

We went down the path of selling the property to a trust (with pty ltd as trustee). We incure stamp duty (~$35k) and have to pay GST. However, the trust will incure a net loss on the sale, and it will assist with future tax management, plus succession planning plus asset protection, plus future plans for ongoing developments.
So it may not be the 'perfect' solution in regards to tax, however the transfer provides us with many benifits going forward, and future plans will more than offset the small difference in tax payments now.

Blacky

 

Things are flying along.
Since last update the slab has cured
2nd floor brick work has been complete
roofing complete
Ceilings have started to go in, and external rendering is under way in ernest.

Here is some happy snaps.

Blacky

 

Looking good and fast!!

 

Yeah, its going up super fast. Even when the pad was curing there was still about 4-5 guys on site each day.
They are now operting with 15++ guys daily depending on the work schedule.
Everytime, so far, they have mentioned a milestone date they have hit it.

So far so good!

Blacky

 

Quick update - as of Friday we reached lock up stage

I dont have any up to date pics, so here are some older ones taken about a month ago.

Blacky

 

Great stuff . Are you still on track for an approx 21% return?

 

We are comfortable with that projection.
The market has dipped a bit, but there are still some good sales in the area.
Its hard to guage as there isnt a lot in the area which is comparable. Some old (70s/80s) units close buy sell at about $450k. So location is comparable, but build is not.
There are some similar units in Subi in huge complexes which are selling at $700k+. But arent really comparable in terms of location, or build style - though are similar in terms of size/finish.

The build is looking really good. Even the front two (which we intend on selling) are getting brilliant light, and have a nice 'feel' to them, still with some park views.

So its hard to know for sure, and who knows where the market will be in 6months?
Im fairly confident that our numbers were sufficently conservative - and the build to this point has been well ahead of what we anticipated.

Blacky

 

Dropped by today for a look.
Tilling will be finished tomorrow. PCI is expected mid November with full completion mid December.

They are looking really good and we are happy with our estimates.

I have uploaded some pics. There were a half dozen guys on site. So excuse the construction mess

Blacky

 

Looking good. So nice to see a quick project

 

Looking great Blacky. Love the front elevation detail.

 

Nearly 12 months to the day since contract signing (and only 9 months on site) we had final completion hand over today.

Proud owners of 4 sparkly new units.

Kind of unfortunate timing with Christmas /New Years. Which will play havoc on marketing. We plan to get them up for sale early in the new year.
2 for rent 2 for sale.
I’ll update numbers post contract signing.

I also don’t have any final pics yet.

Blacky

 

Congrats @Blacky , gotta be happy with those timeframes!

 

Some happy snaps

 

Love all the usage of glass to maximise the great greenery views. Also like that you went with bulkheads in the kitchen. Gives it a 'lusher' feel. Also defines the space a little more. I'm a fan.

 

Excellent timeframe and shows what can be achieved with a good builder in combination with a client who is organised and helps instead of hinders the builder, AND you live overseas.

Compare that to the nonsense people like inspired homes come up with to justify crap slow work or even @Perthguy s builder taking over 12 months for a single 2storey rear home (not in any way disparaging you btw pg) just feel strongly about the need for us clients and the builders we use to all demand better because it's two steps forward 1 back when it comes to bulding standards in WA and it's so frustrating to see

 

Agreed @sanj that over 12 months is a long time for a straightforward build. In fairness to the builder though, I specifically asked for a good job, not a quick job. Although the build quality should be able to be delivered faster than they have. It would have been a faster project if there were agreed plans when the build commenced though

 

Indeed. Certainly opened my eyes to what is possible. Sees the standard for us going forward.

We even made some very late changes to fit out, which we had overlooked in planning stages, and not being on site didn’t pick up till late.
Regardless of the work involved and the hassles the builder recommendation us to make the changes due to the improved finish.
The changes in real terms were petty cash (less than $10k), however probably delayed completion by about 2 weeks. So their recommendation wasn’t financial motivated - they could see that it was in our best interests.

It’s been a pleasure being involved with this build. Very low stress!

Blacky

 

No argument from me re unfanalised plans being out of their control, I've been guilty of contributing to delays myself in the past, but the time they've taken for a standard build and not an architect bdesigned one with say lots of custom built elements and painstaking detail etc, on what looks to be a flat site with easy access is not acceptable and until everyone stops letting some of.the clowns in the industry getting away with it it will continue to be the norm instead of the exception