Things to consider for building construction phase

Hi Folks,

I am newbie in property development and would like to pick your brain and experience for property development in Noble Park.

The land size is about 745 with standalone weatherboard house. DA to build three townhouses is in progress and expecting outcome in a month's time thus exploring options and do's/don't for next phase of building /subdivision.
i plan to retain two of them at this stage and sell third one, hoping to get advise and insight from experts in community on construction,finance and capital gain tax aspects.

Listed some of the things that comes to mind below though feel free to point out anything that may have been missed.

- How would you approach builder to get the quote? What things/ items to include?
- Any recommendation on negotiation with builder?
- How did you deal with demolition of existing property and what's the best approach?
- Any critical things to keep in mind that could mess the timeline?
- when to sell third townhouse ? off the plan /after build and subdivision
- strategies to leverage mortgage landing and reduce out of pocket expenses ?

Thank you.

 

In terms of tax this wouldnt be a CGT issue. Looks more like income tax.

How long have you owned the land?

 

12 months

 

#1 how did you determine your feasibility - did you use a per square metre rate for construction or have you had builders already quote it?

Your architect can tender it out together with a specification if you want. Your specification can be determined by yourself be looking at your comparables in the area, talking to REAs and together with your architect work out what is suitable/expected for the end values you are chasing.

 

I went with Gravity demolitions. Fixed price and allowed for some asbestos (which was there eg had an old asbestos shed). Another mob was slightly cheaper but asbestos was extra.

Cost me about 12k 2 years ago.

Builder - fixed price contract and agree finishes and specs up front. We secleted tiles, floor coverings, tap fittings, bench tops etc from their showroom before signing the contract (they had a limited range of nice options). Occasionally we pointed out something we liked in their range and the consultant politely explained that wasn’t in our budget. Here, pick one from these three options.

Seriously meant it was all sorted before we commenced. Didn’t have to run around choosing a “tap by tomorrow”as the plumber was installing them the day after.