Fee's i should be looking at?

Discussion in 'Development' started by Eddy89, 1st Dec, 2015.

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  1. Eddy89

    Eddy89 Member

    4th Nov, 2015
    Hi all,

    I'm fairly new to all this, however I have been looking into building and selling something myself.
    We have done this before, but it was my father I just helped out here and there.

    I want to go out and do it myself.
    Myself and family are all mostly in the building industry so I do have help when it comes to building.

    I want to start on something small, and see how it goes.

    So im looking at buying a small block and building a home on it.
    I am wondering what expenses am I looking at?

    So far I have;
    Land: 200k
    Build. price: 170k
    Plans & Engineering: 10k (not sure on this price just a wild guess)
    Real Estate Agent: 2.2% of whatever sale price is (9k)
    Build. Misc: 10k
    Council fees: ??? not sure ?

    What else am I missing? and if I am missing anything what are the prices to those missing items?

    Any help would be much appreciated.

    Thanks in advance.

    PS. Melbourne West side area....
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    18th Jun, 2015
    Perth WA
    If you're building specifically to sell, get tax advice - you'll want to be sure you're not looked upon as a developer and get hit with GST on the sale.
  3. LifesGood

    LifesGood Well-Known Member

    26th Jun, 2015
    Perth WA
    A few other considerations for you.

    - Stamp duty on the land purchase
    - Council websites will have their fee structures, which are usually a percentage of the build value.
    - Insurances if you are building it "yourself" and not using a builder.
    - bank fees and holding costs ie interest during the build process