Thanks for the input,

I am a builder living in the northern rivers NSW. My plan is to buy, develop the land by splitting and building house/duplex. hold for the next few years, and when I have enough equity sell some of the properties and pay off the loans on 3-4 properties creating passive income. I would like to have positively/nuetral geared properties but this may or may not be possible.

The market prices are high now, due to the high demand. Growth in these areas is not great, there has been growth over the last 2 years, but i see minimum growth over 2-4 years. This is why I look to sell as demand outstrips supply hugely when it comes to sales and rental.

Effectively I would build at cost, and anything I would earn plus any equity that i gain would stay within the property when complete. This would give me approximately 30% LVR. This would also mean that I would recoup all of my original investment, so I could go and repeat the process.

I understand that if I sell straight away I would be hit with CGT/GST, but I will have to pay that sometime along the line, albeit at a discounted rate after 12 months.

I feel that if is sell and cash out say after 12 months, then I have eliminated any risk when holding for say 5 years. I know I may be missing out on growth but like i said before the growth is not amazing.

any thoughts would be greatly appreciated

I have been advised to open a building company and a development company, and to be the director of both with my partner (wife). The development company gets the finance and employs the building company to carry out the construction.

Thanks for your input guys