How much profit can be expected?

Helpful approach. Thank you.

 

Thanks Player! Nice point yes resale values might well be a bit higher. I always try to take a conservative approach though. Those quotes I got might not include gst. I'll double check. I just spoke to a very experienced developer today who who reckoned 1.1m. So I am zeroing in on a ballpark figure ...

 

With a 405sqm land content, I have an idea of the location

@big max Is the land 10m wide?

 

Yes around 13 meter frontage.

Similar to this: 32 Albatross Ave Mermaid Beach Qld 4218, RE/MAX Regency

 

That's a very nice development. Those finishes look very high end - a tiler will charge extra to do tiling like that in the bathroom, the bathroom cabinetry is custom etc etc
So basically any quote from a builder needs excellent specifications and elevations to quote accurately unless you want to get a huge surprise after they have been selected and say 'Oh that wasn't in our quote, that will be $50k extra of tiling, cabinetry and lighting'

 

Got it. Another question- I'm a big fan of simple but solid and usable structures. Is there anything in these plans that seems surperfluous?

For example I don't known of the large aluminium blinds on the top floors are neeed. And also wonder if the bathroom and toilet on the master suite are needed (maybe leave open plan). Also might be inclined to go for more simple tiling in bathrooms. Thoughts?

And can someone explain the gst? So if I sell each for 1.8m how much gst would in need to pay? (And could that be avoided - eg I rent it out for a period of time?)

 

Not sure how different construction costs are to Sydney, but if i'm honest i have doubts that you could achieve the same finishes as that Mermaid beach for 500k per side.

Probably best to get a clear spec list of the product the builder is offering to deliver to really see how the finishes stack up to those selling for 2m.

 

These a value adding items. If I'm spending 2mill on a property I'd expect top notch finishes!

 

Yes, I know - what I am getting at is where is the right balance. So if I could save 200K and sell for 1.9m, this would be better than spending the 200K and selling for 2m. Know what I mean?

 

GST is not a simple calculation, especially if you are using the Margin Scheme to reduce it. But at worst case scenario it's 10% you have to pay to the govt, at best case it is 10% on the difference between it's original value + costs and the end value (so maybe (1.9m x 2) - (1.4m + 100k + 1.1m) = 1.2m x 10% = $120k . I probably totally stuffed up that calculation and rules so please read up on it properly and talk to your accountant. GST is payable until the construction is 5 years old, if you rent it out for a year (or live in it for a year) then it becomes a pro rata amount.

Read GST and the margin scheme

 

Do you mean the big arse wooden louvre thingies on the outside? I like them and they probably aid in having the views but not being blasted by the sun.
I would probably put the toilet in the ensuite but many people do like the toilet at least enclosed rather than more open plan.
Simpler tiling is certainly an option but is sometimes as expensive especially if you exchange small tiles for big tiles (ie 600 x 600 rectifieds)

Unfortunately for you I see nothing superfluous on those designs - they are very minimalistic and simple. I would actually like a few extras on it:
- semi ensuite door from Bed 2 to the bathroom. One door from corridor so it's the powder room for the living areas but one door also to the bedroom
- window treatments - may actually include it but they aren't in the 3D renders
- built in bbq/outdoor kitchen