Hi all !
We're thinking of demolishing and sub-dividing our block in Ridgehaven. Does anyone have any experience with this in SA?
How do you start?
What are the costs for a Torrens Title development?
Any info will be greatly appreciated !
Browse Forums Building A New House 1 Dec 30, 2009 8:29 pm Hi all ! We're thinking of demolishing and sub-dividing our block in Ridgehaven. Does anyone have any experience with this in SA? How do you start? What are the costs for a Torrens Title development? Any info will be greatly appreciated ! Re: Sub-Division in SA 2Dec 30, 2009 9:05 pm Excellent ! Thanks for the info. I'll check out their website and do some more research. Do you have an existing house to demolish? Sewer / water connections can be very expensive. Even lowering a connection to meet sewer grade can be over $3000. (I work for a building company, so have had issues with sub-divisions before). Re: Sub-Division in SA 4Dec 31, 2009 4:30 pm My wife and I looked into it last year for our block in Redwood Park, but a significant tree made it impossible to do so. From memory, TTG council require a minimum block of 350m2 and have a 8 or 9m frontage. Re: Sub-Division in SA 5Jan 01, 2010 1:39 pm We have just demolished our house in western suburbs. I highly recommend GP & Sons to do the demolition. They were fantastic, great customer service and very reasonable price - cheaper than the usual suspects. Good luck with it! 2011 Home Sweet Home Handover 03 September 2010 PCI 27August 2010 Plumber 20August 2010 Electrician 19August 2010 Painting 04 August 2010 Cabinets 13Jul2010 Lockup 23June Frame 20April slab 1Mar10 Re: Sub-Division in SA 7Jan 15, 2010 7:51 pm Follow up question - If we do demolish and sub-divide our block, we would just sell the land off without developing. Does anyone know what kind of taxes we would have to pay? i.e. if you sell vacant land, do you pay capital gains? Re: Sub-Division in SA 9Jan 15, 2010 8:13 pm Cant help much with SA but I did similar in Perth. I Believe if it is already your land and your principal residence then capital gains should be nil ( Only an accountant or financial advisor can give you the specifics Oh and if no Tax then nothing to claim ie. the dooor swings both ways). If subdividing ( regarless of demolition ) use a surveyer that specializes in subdivisions. They can advise on green titile , survey strat or whatever ( these may be WA only terms - not sure ). But for approx 7000 clams the surveyor covered most of the duties and recommended demo for me.Took about 7 months for titles issued ( this included demo) Hey , if it was easy everyone would be doin' it Luck Apoligies, probably given you more crap to think about Timeline Aug 08-Land Mar 09-Demo/Titles Sept 10-Handover No1 Sept 11-Handover No2 April 12-Sold No2 Aug 14-Land/Demo Jan 15-Slabs viewtopic.php?f=31&t=25736 Re: Sub-Division in SA 10Jan 15, 2010 8:19 pm I investigated this in detail and sought advice from an accountant (which you should do also). I suggest you look for one who has experience with CGT as I found I was telling my accountant stuff he didn't know. if you were (for example) subdividing your land into 2 blocks and keeping the current house on one of the blocks, if you sell the land with the house on it that would be tax free as it has been your place of residence. The block when you sell it would be subject to CGT as it cannot be considered your residence as there is no house on it. If you demolish the existing house and sell the land as 2 separate blocks they are both subject to CGT as you cannot claim land as a residence - there is no residence. Re: Sub-Division in SA 11Jan 15, 2010 8:36 pm Thanks ! That's what I thought. We would have to demolish the existing house and divide the block down the center to create two smaller, long blocks. Do you have any idea how much CGT is? If we made $50,000 profit, how much tax would we owe? I'm just trying to weigh up our options. If we would have to pay a lot of tax then it might be better to just sell the house as is and settle with a smaller profit, but not have to pay CGT. I really appreciate all the replies Re: Sub-Division in SA 12Jan 15, 2010 9:08 pm It is so long and detailed to work it out - it is seriously worth seeing an accountant about it. Mine only cost me $300 and it helped me to decide but I will do you a VERY rough calculation (relying on my ******* memory but it will give you an idea of how its calculated anyway) How long ago did you buy? How much for? how much would the blocks be worth each to sell? do you have a mortgage on the property? the net profit after expenses is added onto your income for the year and that is how it is taxed. So say for example you will make a net profit of $50k and your current salary is $50k, the tax office sees you as having an annual income of $100k so you will get taxed accordingly. It will also affect any FTB or similar you receive (if you receive any - you may have to pay it back). Re: Sub-Division in SA 13Jan 15, 2010 9:16 pm CGT is payable on 100% of the profit if you have owned the CGT taxable property for less than a year, but only on 50% of the profit if you have owned it for over a year. the tax is payable at your top tax rate - if the property is jointly owned the profit is split in half and each pays tax on their half at their top tax rate - which obviously may be different for each of you if your earnings are in different tax brackets. It is possible one (or both but this is less likely) of you could pay almost no tax - if you did not earn a taxable income that year - say, if you were a SAHM or a full time student. So, presuming you have owned it for over 12 months,, the absolute most you would pay is still less than a quarter of the profit - and that is only if both of you earn over 180,000 each (including the profit) - given that Australia's top tax rate is 45% and doesnt kick in until you hit 180,000. Hope this helps. Edited to add: this is basically what Lee has said but explained slightly differently. I'd already written my answer so I'll post it anyway Re: Sub-Division in SA 14Jan 15, 2010 9:53 pm Damn tax office !!! We bought our house for $240,000 + $10,000 in stamp duty / legals, etc over 2 years ago. If we sub-divided, we would get at least $180,000 for each block ($360,000). So, that would be a profit of $110,000. I'm not sure if you can subtract the cost of demolition and sub-division off of the that amount. At the most, we would have to pay $15,000 - $20,000 for the total knock down and divide. So, that would take it down to $95,000 approximately. My husband and I owe the house jointly, so not sure if we could split it between us. We both earn approx $45,000 per year gross and I have a HELP debt (not sure if that makes a difference). I will definitely speak to an accountant and I have contacts with surveyors / conveyancers at work, so that will help Re: Sub-Division in SA 15Jan 16, 2010 6:35 am I heard that new rules came in to handle for properties that have been the principal residence for portion of the time since purchase. You may need to get an independent valuation when you move out (but before demolition). Check with your accountant and let us know how it goes. Chris Re: Sub-Division in SA 16Jan 16, 2010 10:50 am Quote: My husband and I owe the house jointly, so not sure if we could split it between us. You dont have a choice - if it is jointly owned,the tax office rules require you to split the profit between you for tax purposes - when DH and I sold our IP we would of preferred all the profit to be counted in my name as I am in a lower tax bracket but you cant do this - I guess to stop billionaires from claiming it in the name of their non earning spouse who would then pay next to no tax. I ma not sure about knock down costs being taken into consideration but I imagine subdividing costs would be as all other legal etc costs are deducted from the profit - conveyancer, real estate agent fees, land search fees etc, ie it is the profit after all costs deducted that is counted. Building Standards; Getting It Right! 1. optional, you can but normally just use the earth from the main switch board 2. should be enough but the distance determines voltage drop - sparky should work it… 1 28817 |