Thanks Terry.

Let’s say settlement for the original full block hasn’t occurred yet. Can parties A and B still do this to ensure they don’t pay associated taxes and duties twice?

How exactly do A and B enter into a deed? Do they go to a lawyer to do this? If so, what costs can we expect?

Sorry to bombard you with all these questions,…[Read more]

Actually engineering at stage 3 is additional $3500. So total is more like $23k to get the stage 3.

Nah. They were not giving tax advice, that is the job of accountants. They merely confirmed to me the existing loan can stay unchanged after subdivision or they can divide it into two separate loans one for each block. They did say it’s very rare to ask borrowers to top up the loan after subdiv and demolition as long as we can show that we are…[Read more]

Thanks TerryW. I managed to get through to a home loan specialist at my bank this morning and she confirmed what you said. ;-)

Hum. I think banks tend to offer better variable rates for a single loan of a larger amount, say $1m loan can get var rates of 4.3% for example.

Thanks Qld007. Very helpful comments. The house is very old and tiny 2 bedder with a colourbond roof. So the value is mostly in the land. Isn’t subdivision usually going to create instant value in the land when approved so it’s rare for banks to value subdivided blocks less than the initial value in an appreciating market?

With the maximising…[Read more]