I’ve found Jay’s RE to be full of BS. I spent half an hour on the phone to Ben from LJ Hookers in Mt Isa. Very honest and informative. I would buy off him with confidence.

No stamp duty will apply but you will pay 100% capital gain no matter how long you hold onto the land before you sell. Even if you place a house on the subdivided land it will always attract 100% CGT.

This is the Qld law, I’m not sure of other states.

Duncan

I also use EBM Insurance Brokers in Sydney (1800 800 544). Costs $240 per year for basic rent cover.

I personally don’t worry about contents but Home Insurance is a must along with Landlord Insurance.

Duncan

I agree with Rugbyfan.

Visit the town planning office at your local council and see what the subdivision potential is. Ask them what the costs are for the council infill (to provide access, drainage etc), these are the costs incurred for their workers to make your blocks servicable for resale or construction.

Subdivision seems to be the flavour of the month in some outer city areas in Qld at the moment, as land is getting scarce in the major CBD.

Do some research with 3 or more local RE agents and see what figures they come up with if you were to sell 2 x 600m2 blocks.

Duncan

I live on the Gold Coast and this area will always IMO attract the best CG. $500k buys a modern house 2-5 minutes drive from the beach. For investment bargains there are still 2 b/r modern units at Carrara for @ $180k returning $200pw rent. I can’t see them lasting long though, as that area is only 10 minutes to the beach and a bloody good buy.