Making Money on House & Land Packages

This is a strange question, do you know there are so many items that can be depreciated? it's not the builders responsibility from the paint to the handles to the infrastructure fittings. Even the high end apartments like the ones sold in the TV series "the Block" also has a depreciation schedule done professionally. Why would you attempt itself. You just get a QS to do a report and give you a certified ATO compliant depreciation schedule.

 

Thanks for the advice. My rationale was why pay someone $750 to do something that you can learn yourself, as the tax treatment is all contained in the Tax Act and rental property investor guides that they publish (plus I'm an accountant by trade). The same reason that we do our own conveyancing.

If the feedback is that it's too risky getting your builder to provide the costs then we'll definitely mitigate the risk and pay a professional. It's good working out what you can teach yourself though, especially when the tricky bit (estimating values) should be straight forward for a new build.

 

Then if you're an accountant you'll know that the $700ish Cost to get a proper, less scrutinised by the ATO, professional QS prepared Schedule is deductible.
Personally I don't see it worth the hassle of trying it yourself. I admire your willingness to have a go, but to save $700. . . . Meh.

 

It's funny that sometimes I look at $750 and think 'that's a lovely weekend away somewhere' and sometimes I think 'we just spent 10 times than that on bricks that's not so bad'.

 

'Nuf said:

Can you send me your Depreciation Schedule?

pinkboy...funniest SS thread of all time!

 

Ahhhh that fullylucky is a special kind of person.

 

depends how complex ur build is. if it is a standard H&L you could just get one for $199 with no visit, send in photos etc. If yours was like the block apartments spending the $750-$1000 would be more appropriate.

 

A QS is one of the persons the ATO will accept for the purposes of identifying building depreciation entitlements.

The builder is also another qualified person. That is fine. Their is no need to pay a QS to do it.

 

Bump
Any good deals with land and house packages specifically in Melb at the moment?

MTR

 

For what I can see prices are crazy at the moment, developers tightening clauses on contracts, houses raising around 6-10k every six months, land a lot more. Having said that, even if not like 2 years ago, there are still profits to be made on H&L. Lot of work to find the right lot and sometimes it is better to buy established homes. It all depends on the strategy.

 

Yep...this is what I seeing...but more DD is needed.

 

I've been reading this forum for quite a while, but this is my first post. So much great info, thanks everyone.

I like the H&L method, I know it's not the be all and end all, but it suits me for the time being. I did my first IP about two years ago, a 3/2/1 H&L in Geelong. It's doing ok, and have started to see a bit of growth.

I'm looking to start my next one soon. Was checking out some blocks, and builders today. One of them was working on some duplex splits for a 12.5m x 28m block, he had some interesting designs which I've posted below (similar anyway, this one I just found on the net but it's pretty close). He's doing up some costings at the minute, 2 x 3 bedroom for probably high 200s for the build, can get a block for about 190, so probably about 500ish all up. They are planned to be on one title, no strata split.

Just curious what the pros and cons would be on something like this? Look forward to your thoughts.

 

I'm in the process of evaluating a similar build.

A 350sqm block spilt into 2 means 175sqm per site.
Not sure what area you're looking at but the first thing I'd do is look to see if there's demand for that type of property, both for rental and sale... then comparable sales results..
Are these true duplex builds, with a firewall and able to be subdivided later? Or is is a dual key home? This makes a big difference to desirability and also end values.

 

Looking at Armstrongs Creek. Yes, it's a true duplex with a firewall. So theoretically it can be subdivided later I guess.

As for demand, I really don't know. Hadn't considered something like this until now.

 

Hey that's funny, I was just thinking about something like this today (the townhouses on one title). Do any of the estates like Armstrong creek have any rules against something like that? Would it be hard to get permission down the road to split them? If you cant get it I guess it makes it harder to sell as they need to be sold together

 

Purchased a block in Tarneit for $145k and it's due to title on Sept 17.

It's 221m2, 10.5m frontage, 21m long.

What's the best type/size house I can fit onto this piece of land? And what's the going price these days for such a build.

Thanks!

 

Contact @sash

He would be able to point you in the right direction at least. Busy man though. So use please and thankyou.

 

fantastic post. Thank you all for sharing. Any tips for sydney and surroundings?

 

I thought you couldn't do duplex on standard development lots? Also that plan you posted looks like 2 bed duplexes not 3.

 

A lot more profit in Sydney but a lot more risk too.. both southwest and northwest will keep moving for a long time whether propertychat investors agree or not.. only exception is any macroprudential changed, which would cool all property..
If you want my pick for Sydney it's Leppington and Austral in SW and Marsden Park in NW.. still can do 4 bed h&l under 550-600k which will rent for $550+.. comparable sales mid-high 600s atm. Just a lot more debt imo. If you can study the Melb market i'd go that over Sydney atm.. way more affordable as you can see from the guys results