Good evening all.
Just a quick question for you smart ones out there.
I thought the idea of on selling was that you would sell the property before settlement & make a quick buck without paying the stamp duty. Hence you never actually owned it.
Speaking with a settlement agent, she said you have to own it before you can on sell it.So you coincide the settlement dates, you pay stamp duty so does the new owner & the government reaps the rewards.
Am i missing something here or its just how it is?[blink]w
She is wrong.
You have the right to on sell the property once you have signed a contract.
But then you are also wrong….
You will need to pay stamp duty.
There have been some creative techniques devised to try and overcome this, but in Vic (the market I know well- having bought 4 properties for clients this week alone) the STate Revenue Office has really clamped down on assigning contracts and will charge you stamp duty.
There is still one way around it and that is not to buy the property but to take an option over the property and onsell the option. This is an advanced technique and not for everyone, but will be discussed at length by a top property solicitor at our “Real World” real estate workshop in June. Details are here:
http://www.metropoleprojects.com.au/html/s02_article/article_view.asp?art_id=107Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auYou can do this ……
Two ways I have done this is…..1. Sign up a standard option… you can get out of it but will forfeit your option fee if you pull out (usually (but not always) need a larger option fee to create that win-win with the seller)… You simply find a buyer and pass contracts for a fee & or sales price difference.
2. Sign up a option with put and call clauses ( I have not done this one myself) This is common in come off the plan transactions…however you can NOT get out of it if your buyer pulls out… you must purchase no matter what….. you can onsell after the option is excercised… however you will wear the Stamp duty and so will the new buyer.
Hope this sheds a little light at the end of the tunnel.
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.biz
We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Well thanks guys.
I was right there are a few smart ones out there.
It sounds complicated so this calls for more research & investigation.
The government is like a bank in many ways.
As soon as you learn how to buck the system they change the rules.
[confused2]w
You must be logged in to reply to this topic. If you don't have an account, you can register here.
