Brisbane 2 homes development

Pretty much. To check overlays, services to site and their locations, any obvious restrictions/challenges and possible solutions and overall town planning risk.

 

[QUOTE="
Where: Norman Park(ish) Brisbane
What: 900sqm block to split into 2 and build higher end modern 3 level homes OR complete reno and sell if council refuse our plans (unlikely but always good to have plan b ).
How Much: $800k for the site, $1m for the construction, 65k subdivision
Terms: 40 working days due diligence, 120 days settlement, full access to site during DD and settlement periods.
When: Start construction mid 2017
Plan: 2 freestanding high end homes with city views.
End Value: 2.7-2.8+m[/QUOTE]

How much tax need to be paid if they sold 2.7M?

 

fumid, post: 296646, member: 4553"][QUOTE="
Where: Norman Park(ish) Brisbane
What: 900sqm block to split into 2 and build higher end modern 3 level homes OR complete reno and sell if council refuse our plans (unlikely but always good to have plan b ).
How Much: $800k for the site, $1m for the construction, 65k subdivision
Terms: 40 working days due diligence, 120 days settlement, full access to site during DD and settlement periods.
When: Start construction mid 2017
Plan: 2 freestanding high end homes with city views.
End Value: 2.7-2.8+m[/

How much tax need to be paid if they sold 2.7M?[/QUOTE]



We're not selling both so I wouldn't know, I would consult with my tax accountant. We would get the discount plus further tax concessions based on structure and strategy which I wont get into here mate.

 

Subdivision plan lodged to BCC... waiting approval. TP says should be within 3 weeks. Fingers crossed folks.

 

Good luck. All the best!

 

Hi @Leo2413 so this tells you easement issues, which way your land slopes ect?.
So after this what else does the town planner role play is this game?.
Then you make an offer for the property?.

 

HI @Tranquilo,

Possibly mate. If your block slopes away (especially if its significant) from the main street frontage and the services you need to connect to are located on that frontage, then its often the case that you need to find the next closest LPoD (legal point of discharge) which could be on a neighbors' block. That would then require you to get permission from them to connect to the services on their land, by way of creating an easement. Other easements can already be on the land and hinder your development plans, depending where and what they are. Your town planner can help you identify other existing easements and their usage etc.

The town planner from the outset can also help you determine what can be developed on the land, any restrictions, possible challenges etc and then draw up the submission papers for council including any Subdivision Plans, Development Applications etc.

I posted this awhile ago about how I approach the process. Roughly, for me its like this;

1. Understand an area including demographics, in demand stock type, vacancy rates, resale values etc for development opportunities.
2. Have approx cost estimate for major costs for back of envelope feasibility when potential site is found.
3. Find site where BOE feaso shows roughly 25-30% margin,
4. Preliminary consultation with TP re site ( i never waste my time reading councils DCP etc i just want to know the very broad requirements eg lot size and frontage and zoning) and if a general YES is given by TP, then I negotiate the site , negotiate as long a DD clause as possible so I can do a detailed feasibility.
5. Once under DD and site is safe from being snatched away I engage a town planner to thoroughly assess and give recommendations. At this point depending on their feedback i may further consult with my engineers, builders, other consultants to get more information needed to asses the risk and viability of the deal and see where the numbers end up on a more detailed feaso with contingency.
6. If given the green light, accept deal. Start design process. Start subdivision. Get services in.
7. Start tendering process.
8. Build when ready.

 

Thanks @Leo2413 yeah i read everything you post im just trying to understand more. Its takes abit to sink in with me lol.

 

All good mate. I'm still left scratching my head at times trying to figure things out .

I think the main thing to start is 1. know the area and what type of developments your looking for 2. know the major costs and profit numbers, 3. find a site that looks good on a quick feaso and TP agrees, then get it under DD clause asap. That's one of the biggest challenges . .to be able to get it under contract and DD before someone else does so you can then REALLY assess what you got in detail without the fear of it being stolen away from you. You can't spend too much time and money on the deal before it's under contract because the risk of losing those initial investigation costs is high . When you multiply that for every deal you look at it's no chunk change .

 

Update:

Subdivision Plans Approved Took 10 days to approve from lodgement date.

This is for a deal we found while we were in Italy. Negotiated the deal throughout the nights. Haven't seen the property yet. A lot of stress and pressure while on 'holiday'. It's paid off.

 

Wow, that's fast.
Congratulation.

 

Thanks for the detailed posts @Leo2413.

How do you go about negotiating a due diligence period? Most blocks, especially those with development potential, sell like hot cakes and a seller has a few buyers who can settle quickly. Do you find blocks thst the average buyer couldn't develop and offer a price that's higher than a non developer could pay, giving the seller some incentive to wait for you to do due diligence (in the hopes of getting the higher selling price) and removing buyer competition from other developers (it being a tricky block to develop)? Or is there some other trick?

 

Pretty tired from my plane trip so ill just reply in point form .

1. Buy pre boom. Helps with less competition .
2. Know your numbers and the area well so you can react very fast when sites come on the market .
3. Build strong networks and relationships with all the key players involved; reas, architects, town planners, builders etc cos often they will alert you to off market deals or deals that will already stack up on a BOE feaso.
4. OOA agents can be a fantastic resource. nuf said.
5. Build and have your development team ready to asses potential sites asap and give you their feedback within 48 hours .
6. Try to offer terms that the vendor wants and you can live with while promoting your own agenda for what you need out of the deal.

Just a few points .

 

Hi Leo

I understand that you have a share driveway for both dwellings. How will you have the titles for these properties? Will the share driveway is a common property for both owners?

 

Hi Leo
any update on how the project is progressing? I'm newish and looking for some relevant stories and yours (this one and the 'southern' Brisbane thread) have been most informative thus far.

 

We miss @Leo2413 from the forum

 

Yes where are you @Leo2413 my friend, you are missed