Acorn,Your experience is similar to mine.I developed a rear...

Acorn,

Your experience is similar to mine.

I developed a rear strata behind my PPOR in 2006.

My plan was to sell the land to a dreamer, however the planning department put a plate height condition on the approval which meant a title wouldn't be issued until a building on it was built to plate height.

Had no choice so I built. My view is you don't develop unless you can get something at wholesale. I had the land since 2001 so had gained there. Also being an architect saved me the costs of paying someone like myself.

I am ahead, maybe have 400k of equity tied up in it, though if I did the sums on today's land price, build costs, consultants fees etc and applied a developers margin it just wouldn't happen.

People like us that do these things deserve the deductions, depreciation and other benefits that the government allows. Without these holding just wouldn't be an option and mum and dad developers would not exist.

These get us through the first 5 or so years of holding until growth and rental return eventually appear and make it worthwhile.

JS