Croydon (Melb) - 3 Townhouse Development

Discussion in 'Development' started by MTR, 7th Jul, 2016.

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  1. MTR

    MTR Well-Known Member

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    actually it was 3 reports and 2 arborists, approx. $2400

    The issue was council's arborist not even considering the reports and dismissing these, that is why we employed a second arborist who agreed with the first arborist and this is when council decided to actually view the site and they also agreed with the reports. .
     
    Last edited: 8th Jul, 2016
  2. MTR

    MTR Well-Known Member

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    I had 3 reports completed and employed 2 arborist.

    We did this because council seemed to dismiss the first report so we decided to employ someone else for Council's benefit, finally they actually agreed with the report. Arborist reports should be gospel, they have to follow guidelines.
     
  3. Sackie

    Sackie Well-Known Member

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    Most of the time they don't know their right hand from left. Frustrating as mighty hell.
     
  4. MTR

    MTR Well-Known Member

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    Yes, many delays with this one.
    I had a long settlement 6 months, that does help.
     
  5. Sackie

    Sackie Well-Known Member

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    Definitely a huge plus there.
     
  6. MTR

    MTR Well-Known Member

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    I find this common in Melb, long settlements, however not so in Perth, very difficult to buy with a long settlement.

    There are so many reasons I really like developing in Melb, one major reason is building costs are cheaper than Perth and possibly in Australia?
     
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  7. Sackie

    Sackie Well-Known Member

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    With the current state of the markets in Perth I would have thought that they would be a little more willing to have longer settlements?
     
  8. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Yes, market risk is pretty high as Melbourne market has been trending upwards for quite a few years.
     
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  9. MindMaster

    MindMaster Well-Known Member

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    Hi MTR, very interesting thread :)

    I have a 2 bed unit in Croydon from a recently completed JV that I'm selling for $478k with settlement in just over a week. One lesson I learnt from this sale is never EVER get tenants then sell a unit. That mistake cost me around $10k or more:eek:

    How did you source your site? I'm guessing a BA.

    Do you find being in Perth is a big problem when it comes to working with the anal local council, your town planner and everyone else?
     
  10. Pier1

    Pier1 Well-Known Member

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    Would love to see a great TH plan with master bedroom on ground floor.
     
  11. MTR

    MTR Well-Known Member

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    I should be able to down load final plans in a couple of months, happy to share these.

    Its not rocket science, but if you can build a workable design with less sqm that sells this is where you save $, but you also need the right architect for this one.
     
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  12. Iamnumber5

    Iamnumber5 Well-Known Member

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    Attending auction on 31 Plumer st, Croydon. 1015 m2 blok sold for $781,000.
     
  13. MTR

    MTR Well-Known Member

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    developers have already jumped into this street which is good, because a precedent has been set, may be easier to get plans and permits approved. This may be a 3 unit site?

    I possibly got my site for a very good price because there was no development on my street at the time.
     
  14. sanj

    sanj Well-Known Member Premium Member

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    how much have you spent on your site so far? if it's still under 600k it may be worth just selling the site, or at least doing the numbers on it. of course depends on what your intention originally was as that will determine if you get the 50% CGT discount.

    taking a quick glance, a 260k gross CG minus transaction costs and then with 50% CGT might net you a figure not a whole lot less than you look like you're going to make if you buikd;sell and pay the gst+income tax
     
  15. MTR

    MTR Well-Known Member

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    if it was a 4 unit site I would sell DA, but it is not unfortunatlely, worked out the numbers much more money in building

    I won't get 50% CGT discount I purchase in Trust, but I will be paying very little tax, won't go into detail on the forum but it is all legal.

    MTR:)
     
  16. sanj

    sanj Well-Known Member Premium Member

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    a company as trustee for a trust qualifies for 50%cgt discount. it's only if it was a straight company that you would not.
     
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  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Correct but only if the investment intent is correct for the project and trust.
     
  18. MTR

    MTR Well-Known Member

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    I sourced property, however have had lots of support from be developer, Chirag, BA, he has buying power this is one reason why we building costs are competitive.
     
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  19. sanj

    sanj Well-Known Member Premium Member

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    that would affect whether cgt is applicable at all vs income tax, not whether the 50% cgt discount is applicable I believe
     
  20. MindMaster

    MindMaster Well-Known Member

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    Thanks MTR, good to know. I may cut a few apron strings in the new future (subject to finance :D) and be a little more hands on. No where near as much as you because I don't have your skills or experience but a step in that direction.

    Not being on the ground where the development takes place would be tricky but workable with the right team as you show.