It is possible (i have done this three times for clients ) to successfully put a submission to Office of State Revenue asking that the stamp duty be waived. OSR will be concerned to see that the value of both properties is the same or they will simply charge stamp duty on the excess of more than what you originaly owned.. Lets say you build 2 villas on one title both which is owned as joint tenants or tenants in common in equal shares, and you then decide to subdivide and want each person is to hold one villa in their own name. Just put in a written submission with the transfers and evidence of valuation (they might even accept agents appraisals plus statutory declarations with photos and plans annexed showing the relative floor areas) and shouldn’t be a problem. Talk to your solicitor, it’s what we do. Some people think we cost money. We don’t We save money. Jolie

Thanks in advance,
Don[/font=Verdana]
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[Arthur K,
if you want cash and don’t want to settle for 12 months to pay only 1/2 CGT (if you don’t want to move in as your PPOR) you could consisder a put and call option. Say after 6 months you have finished the reno but don’t want to sell it until 12 months to pay CGT on half the profit, BUT WANT CASH NOW. If you are satisfied that it isn’t a rising market, or you are happy with the price you can get, you can enter a put & call option with an option fee. The option fee gives you CASH NOW. The put & call option is like an option which binds both parties -ie if the purchaser doesn’t exercise their option to buy, you can exercise your option to sell to them. Jolie

[go up to your neighbour’s, knock on the door and ask. Before you do that, think what you can offer him/her to make the deal w win/win/situation – could she perhaps share the driveway so she can extend on the other side of her house? or can you promise a building envelope which will igbve her privacy from your proposed development. How much money is it worth to you. Will it devalue her block. Bear in mind she willprobably say no, unless the deal is good for her. You then have to convince her mortgagee, who will not agree if the slice you want to take will devalue their security and your neighbour’s mortgage ratio is high. If all agree, have a surveyor draw up the boundary adjustment, it has to be signed by both registered propretors, all mortgagees, then signed off by the local council, (I am assuming there are roads involved) then all parties present their title deeds at the Land & Property Office and the boundary adjustment is noted on the plan of subdivision. Surveyors fees might cost $3-6,000, the mortgagee might cost $1,000 – $1,500; the LPI fees might be $1,000. If thre are easements to draw, the solicitors fee might be$600-$1,000. So, the line of action is a)go and talk to your neighbour first, ask him/her if he has a mortgage, then talk to your surveyor, get some quotes both for cost and for time (some won’t get it done for months) then submit the plan to your neighbours, then their mortgagee, your surveyor will be able to take it from there. Don’t let this put you off. A boundary adjustment can be fabulous and hugely cost effective for opening up the potential of a block. Jolie

thanks
Celeste
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