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I got 95% finance doing this, i am presuming that it is a relocatable home, once the bank came around to value it, it did not look like a relocatable home anymore, it just looked like a normal home, they didnt care
From what i understand the land that you are subdiving has value from when you first purchased it, for example, just say you bought the original house for $200,000 and you are on 1000 square meters. Then you decide to subdivide it, you may argue that the back new block is worth $100,000 so that would come off when working out your capital gains tax. i would not asume that the new block has no value. ( hope this makes sense) And as for the 50% exemption from what i also understand this is the case, as it is not about the new title, you have owned the rear parcel of land for more than 12 months, the fact that you have just ” changed its purpose” should not mean you have to pay CGT on 100% of the gain…. However i would check this with your accountant this is not advice just i have been through this many times subdividing.
Hope this helpsemail me and i will give you the website that sells great subdividing info and the DVD
[email protected]And anyone else for that matter that wants the website
I have done a few subdivisions in NSW, yes from what i understand, you have to have sewer, and a driveway before you can register a title, i never go to a solicitor for this info i go to a town planner or a local surveyor they will give you this info over the phone for free hoping to get your surveying work, which i give them. However the biggest pittfall i find is hidden developers fees, first subdivision i did i bought the block with existing house for $150,000 and planned to subdivide it and the local water authority charged me $12,000 developers fee, which covered nothing, i still had to pay for the sewer connection etc… i made a DVD that i sell covering some of these pitfalls.
Hope this helps…… i love subdividing!!!Yes, i was going to offer half the loss even though he did fire sale it, i was willing to do this to stay out of court & to close the matter so me and my family can put it behind us, however he is not intrested in settling out of court, It was definatly a fire sale
The house got valued at $505,000 half way thru the renos by a registered valuer, he sold it for $472,000 totally finished and vacant land same size, same street no views or anything sold for $530,000 a week later, a 4 bedroom house smaller than ours sold for $600,000 2 weeks later
Thanks Terry,
Even though i know in my heart i am right in what i have done, i was going to offer him half the losses just to end the matter, after reading everyones posts it has given me strength to fight on and not hand over a cent unless my solicitor advises me to, thank you to all, the journey continues.You are all champions thank you for your support and encouragment.
I did have a caveatable interest without lending him the money, the JV contract was very clear about that, the JV is also really clear about dispute resolution, it has a entire page about the steps to take, it starts with mediation and says pretty much that court proceddings can only commence if mediation does not work out, however this guy has just elected to go straight to court and has served the papers. it says in the JV how to choose a mediator and that the mediators decision will be final and binding! It ias a really good JV contract he has broken quite a few conditions in it, i have broken none, he refers back to the JV contract when it suits him, when it dosent he trys to tell me i have broken the managed funds act, ( we proved that this was not the case ) now he is saying i have broken the trades practises act etc…
Yeh,
I asked him to sign a letter confirming that he would repay the money i lent him on settlement, it is then his solicitor sent me a nasty letter saying they intend to sue after settlement, i put a caveat on the JV house cause i had a caveatable interest in it, but it all got a bit stressfull, so i lifted the caveat so he could settle, we agreed that the money owed would be deposited into his solicitors trust fund account for us to arge over after settlement? Sounds crazy but i di not want to be responsible for bankrupting him, which probably would have happend if i stuck with the caveat – maybe i am to nice??Thanks for everyones comments, it is ashame, i have spent so much time and money helping young investors get into the game, i just did not think some one would try to stich me up, Although i accept full responsibilty for what happens to me in my life sometimes you come accross massive hurdles!!
The JV Contract was written by a good well known lawyer, it is really clear and it states that there will be no promises made in regards to current value of house future value, expenses etc… We had a dual bank account we both got quotes by I got the most and I did the ordering, the money I lent him was not formalized (my downfall) The house was not joint owned, he owned it. The JV says he needs my written permission to sell, which he never got or asked for, he sent me emails saying, I must sell now and quickly I am not happy with the price but will stop the banks beating down my door. I am only offering him half the money now to relive my stress, but don’t know really what else to do, my solicitor is still reviewing the case and will advise me shortly
