Forum Replies Created
iF you had the town houses for 12months ( and I am pretty sure its from the time of construction not completion) then you should get a 50% break from your CGT – making it $20 000 – paying your nominal rate of tax on that amount .
I would say the way you worked it out is correct – the cost of the whole project / no of Townhouses
CGT is not your enemy here GST is – if you pay CGT you made a profit ! Hold onto the land for 12 months and get your 50% discount .
I dont know what sort of money you are talking about and what are the costs of subdividing ?In my council – buy a big block for $300 + stamp duty of about $10 – sub div cost $70 legals and such $5 total spent $385
Subdivide and build ( say a build of $150 for low set) you have to sell it for over 344 to make a profit – no profit no cgt. But you will have to pay GSt of $34 – that my friend will sink the deal!
My first ( and last ) thought is why sell?? You can still use the capital made without selling – keep them they could be CF neutral in 4 years!
Thanks – I did jump I know its good – its a good deal and I know if I have to pull out in 12 – 18 months time I can with profit but I really want to keep properties – I just need them to be Cf = neutral I might not get there for a few years but working on it !
By the time the block is split will it be close to 12 months ? Why not wait it out and not take the risk – put the DA in and I think you have 4 years to execute it – do so on selling the block and pay the fees on settlement.
Assuming that cost is driving you to sell before 12 months is up that could be an option.
4 years is my councils rule but you should check your own to make sure
HI Darren
from the first home grants site
http://www.firsthomegrants.com.au/Requirements:
• You must be an Australian citizen or permanent resident
• Have never owned property in this country
• You must have lived in Australia for at least six months;
• You must be over 18-years old
• You must be buying or building your first property as a person, not as a company or trust
• Neither you or your spouse must have claimed this grant previously
• An eligible home must be located in Australia and be a new or established house, home unit, flat or other type of self-contained fixed dwelling that lawfully can be used as a place of residence
• You must live in the property for at least six months out of the first twelve months immediately after purchaseFrom what I understand from my Solicitor – Trusts can be set up in so many ways – with very specific rules that suit you – but at the end of the day the ATo rules apply – so yes I believe that you will be up for Stamp duty. You really need to speak to someone who sets them up for property protection for a living – set it up wrong and it might cost you a lot. Good Luck
