Duplex build with daughter

Meeting held, will take a bit of time for Solicitor to work out estimate of costs involved to do Deed of Partition.

One good point in our favour is that both units are identical and land content is similar.

Solicitor wanted copies of building contract, extras to finish build eg. landscaping etc., strata plan, occupation certificate, loan documents and valuation of construction start and finish prices.


Sheryn
 
Hang in there Sheryn.......and with the other one also. As trying as these obstacles are, they make us stronger and, this too shall pass. :)
 
Rang Loans Officer to let her know our Solicitor will organise a "Deed of Partition" and that our Solicitor had informally spoken to their solicitor.

Held Inaugural Meeting of Owners Corporation on the 17th. Daughter typed up minutes and I need to organise a strata seal stamp this week.


I guess we need to hold first AGM next year in July as still initial period?:p

Tip
The Victorian Strata information is better than Office of Fair Trading in NSW in so far as they have sample documents to use.


Sheryn
 
Have you found out the costs for the DOP Sheryn?
Have you avoided stamp duties?
How would you do it next time? I was thinking of a scenario where I might buy a duplex block with a friend for PPOR with the end intention to strata the houses and own 1 each. How could we minimise costs?
 
Rockstar said:
Have you found out the costs for the DOP Sheryn? No

Have you avoided stamp duties? Unsure at this stage Solicitor hoping we can do as an equal transfer which according to my research is less money.

How would you do it next time? Buy & build in our name only - we did this project only so daughter could get into the market in a PPOR that did not need maintenance

I was thinking of a scenario where I might buy a duplex block with a friend for PPOR with the end intention to strata the houses and own 1 each. How could we minimise costs?
Click to expand...

Rockstar I think the way to go is one person develops, strata's and sells to the other. It is a minefield having a joint loan with daughter and has causes us problems. Having said that it was the only way for us to go and I am pleased we did it BUT I would only do for immediate family eg. your son.

Daughter could only borrow a set amount according to our Lender and they reduced what she could borrow as we were getting plans drawn up due to IR going up!

Now we have built and once DOP done - daughter can borrow against her unit and buy or build again - she may even be able to build a house!

When when we started this, a duplex was all she could afford. Of course we have to refinance pay break fees if done before Oct 2010 as current Lender will not lend but she can get a Big 4 loan.


Our Lender's valuer was conservative with Value of project - we were told usually by 10 -15%. Well that was not the case turns out the project was undervalued by 20-25% IMHO.

As if complete value was $490,000. Actual value from respected REA $630,000 - 650,000 which means each unit could sell for 315K - 325K in current market rather than 245K valuer said.

Will let you know costs of DOP - once I know.

Sheryn
 
I was thinking that we could purchase the block of land and draw up a contract of sale for the other house at the same time (to the 2nd party) subject to registration of strata. They would lend us half the money (interest free) for the land, DA costs and construction (or pay half the interest and loan costs on any borrowed funds). They would also pay half the strata costs, stamp duty and any capital gains tax incurred etc. Any loans to us would be kept as payment toward their new home at settlement.

Make sense?
 
YES

Same as OTP pre-sale. And our builder does this eg. draws up plans for a duplex and pre-sells at least one duplex if not BOTH duplexes.

Rockstar
I have been told that once duplex built you can let new owners into duplex 'under a licence' not exactly sure what that is eg. CONTRACT to buy/pay all money owning when strata is through but in the meantime they have to pay rent. Our builder told us he did this with a 5 unit development.

I was going to ring Solicitor today to see how DOP going but hubby was an hour late picking me up from work.

On another note....

Daughter is going thru a 45kg gas bottle about once a month with 2 people we checked this out with ELGAS and they said it is about normal. We asked our tenants in 4 bedoom house and they are going thru a gas bottle every 6 weeks with 4 people.

Hubby went and talked to the salesman at Reece, turns out our 4 bedroom house has an 'efficent' gas hot water system eg. instanteous gas with control pad BUT our 3 bedroom duplex has a 'contractors pack' hot water system eg. instanteous gas (without control pad).

One would think when you build with a 'Quality Builder' his quality would not go down - but it did, I have checked the specifications from the builder.

Builder IMHO made +-$200 profit by fitting cheaper version gas system and daughter [and our tenants] will pay an additional $400.00 to 500.00 or thereabouts each every year in gas.

Anyway- Hubby applied for and received his Home / Owner Builders Permit today for the next duplex project which is on another thread and you can be assured will install and efficient gas hot water system.

Sheryn
 
Thanks Sheryn, food for thought.
Interesting info on the gas. I have never been a fan of gas for this reason. Have paid a bit more on the new duplex to get solar with electric booster. Otherwise I would have had the standard Perry Homes gas unit. Can't beat solar HW IMO.
 
Rockstar said:
Can't beat solar HW IMO.
Click to expand...

We now agree - we are learning that you can't beat solar hot water!

Another BIT of a PROBLEM...Like they say if it was easy everyone would be doing it!

The neighbour's Builder dug their block of land down about 1400mm in 2 steps and encroached our land. Then Owners engaged a subcontractor to build retaining wall with blocks and a small portion of the retaining wall is on our land.

We needed to build a boundary fence as too unsafe to rent out our unit to tenants without a fence.

We mailed out a letter asking for a dividing fence and copies of quotes, as too unsafe to rent out our property eg. unit 2 without a fence.

The wife rang twice and hubby went up to meet her to explain boundary fence. The wife agreed to fence had ticked she wanted a colourbond fence on letter - then my hubby pointed out at Colourbond fence at least 1Kdearer, so she suggested 4 installments of $207.00 and signed for this.

We have her written consent to a fence costing 4x $207 installments.

Anyway we put up a 1800mm timber fence and she has not paid any installments.

I have sent out 3 requests for payment + plus notice that we will seek payment via legal system!:(

On Monday I will ring the Community Justice Centre on 1800 990 777 to organise a mediation session.

I believe in a WIN/WIN situation so when I/we go into mediation.

I am happy to explain OHS and hazards and risk of injury to her and the mediator and demonstrate this with pictures, explain to her that she has built her block retaining wall on our land :eek: and had signed to pay 4 installments for a timber fence and paid none.

Wonder how much the small portion of our land is worth and I wonder how much it will cost her to remove her retaining wall off our land.

Will be interesting to experience how Community Justice Centre mediates.


Regards
Sheryn
 
Building wealth requires you to solve problems

Sheryn said:
On Monday I will ring the Community Justice Centre on 1800 990 777 to organise a mediation session.

I believe in a WIN/WIN situation so when I/we go into mediation.
Click to expand...

Well I did ring Community Justice Centre and they said they would send out a letter, I was under the impression I would get a copy but haven't received one as yet.

What I did find out is that the Community Justice Centre has no power if neighbour ignores request for mediation - that is it.

Question - Does anyone know the next step to recover half cost of fence that neighbour agreed to in writting?

Guess I will have to see our lawyer..

On the plus side our back neighbour paid their half of fence promptly.
 
Section 24 Recovery of money payable - Do I go to the Local Court House to do this?

Neighbour signed that she accepted timber fence quote and agreed to pay half $825.50 and pay within 14 days of fence being constructed, then requested 4 x payments of $207 and hubby agreed.

She has not paid anything and I have sent 3 notices if not 4.


Regards
Sheryn
 
Live and learn

Received letter from Community Justice Centre yesterday - next door neighbour has not replied to letter sent by CJC.

Hubby and I are going away tomorrow for long weekend, so as soon as I make the time I will go down to local court house and see what the process is to recover costs of fence which neighbour agreed too and signed acceptance.

Definitely my first experience at following law process to the end.

Have not been to local court house before except to request birth certificate.


Sheryn
 
Rang consultant's secretary to find out progress on DOP, still waiting from them to get back to me.

We went caravanning last week end and put the caravan in for warranty repairs so have not been to court house yet. I have to start a SMSF this week so probably will not get to the court house this week.


Sheryn
 
Picked up Strata Plan Common Seal stamp today and checked with Office of Fair Trading that we have done everything eg. inaugural meeting, don't need to register, just hold AGM each year.


Almost forgot - rang for legal advise re: non payment of fence...

1. Send a Letter of Demand (typed up and posted as registered mail today).
2. Wait required time and then complete Statement of Claim either form 3a or 3b

Was instructed to type squeezed into search box and this is what pops up
www.legalaid.nsw.gov.au/asp/index.asp?pgid=488


Regards
Sheryn
 
Received some free advice from phone number under court house in telephone book. I sent a Letter of Demand with a copy of 'evidence' next door neighbour had agreed to pay half of fence in 4 installments.

Anyway CJC rang to say neighbour agreeable to mediation session at Court House and date agreed and booked.

Then CJC rings neighbour can't attend on date she agreed to as she works, can we do another date?

CJC passed on message neighbour can pay $50 per week. I have agreed to CJC arranging another date for mediation (even if I can't be there - I will write a statement to be read to neighbour) hubby can attend.

Now the interesting thing is neighbour suggested 4 X $207 payments and paid nothing.

JUST WORKED THIS OUT....
First payment was due on 22.5.2009 and as of tomorrow 17 Fridays have gone past with no payment!

If neighbour had paid $50 x 17 weeks, she would have paid off $850.00 by tomorrow and only owe us $25.50.

I think I will tell my boss I have to attend Court House on whatever date for the 2 to 4 hour mediation session.


On another note...
Trying to follow up with Solicitor re Deed of Partition and we are playing telephone tag.


Sheryn
 
Sheryn said:
Then CJC rings neighbour can't attend on date she agreed to as she works, can we do another date?

CJC passed on message neighbour can pay $50 per week. I have agreed to CJC arranging another date for mediation (even if I can't be there - I will write a statement to be read to neighbour) hubby can attend. Sheryn
Click to expand...

Mediation session at Court House was booked for tomorrow at 10am. Community Justice Centre rang hubby to say it has been cancelled by neighbour again.


Beyond a joke so I will make appointment with our Lawyer. :(
 
Rang up and got free legal advice, since we have followed procedures to resolve eg. mediation which has been cancelled twice by the other party and we have evidence that other party agreed to fence and cost.

Today we went down to the Court House and lodged a 'Statement of Claims' and paid $114.50 (I think) which is added to the outstanding fence amount.

Solicitor called in to our place last Thursday night and we have signed all the paperwork for Deed Of Partition so here's hoping Lender agrees so it can be lodged.


Our daughter is getting Spotlight to quote for her window finishings, so we will offer to pay for a bedroom for her birthday.


Sheryn
 
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