Help from members - CGT question! - PropertyInvesting.com

Viewing 8 posts - 1 through 8 (of 8 total)

bap
Participant
@bap
Join Date: 2004
Post Count: 7
June 13, 2004 - 3:09 am
Hi all
I’m a first time user, so be gentle!
At the moment I have a block of land and are looking at building two houses (strata approved). I have had some fun with the original builder and now moving onto antother. Seems to be on track.
The question I ask is about CGT. I know that if I hold the properties for a year I get a 50% discount howver I’m not too sure of the timing. When does the ATO start the count?
Is it when I purchased the land?
Is it when I start building (sign the contracts?
Is it when I finsh the building?
The answers to these questions (depending on my profit margin) will give me an indication on when to sell.
Steve
bap
Participant
@bap
Join Date: 2004
Post Count: 7
June 13, 2004 - 3:37 am
MA
On completion they will have separate titles!
Steve
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 13, 2004 - 3:54 am
Steve
I beleive Robert is referring to Torrens title rather than Strata title although it maybe a condition of the Development Approval.
With regards to your CGT it is calculated on the date of your original contract as well as the date of any future sale contract. You require a minimum of 365 days between the two.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au
There is no such thing as a problem.
Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
bap
Participant
@bap
Join Date: 2004
Post Count: 7
June 13, 2004 - 4:13 am
Thanks Richard
With respect to “date of your original contract” do you mean the building contract or the purchase of land contract?
Cheers
Steve
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 13, 2004 - 4:32 am
Land Contract
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au
There is no such thing as a problem.
Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
bap
Participant
@bap
Join Date: 2004
Post Count: 7
June 13, 2004 - 4:36 am
Richard
Thanks a million!
Steve
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
June 13, 2004 - 5:28 am
Hi Steve,
Suggest a search of the ATO website and/or a read of the following document;
http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm
You’ve got nothing better to do this afternoon the Dockers are getting a hammering at half time[biggrin]
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.
kp
Member
@kp
Join Date: 2004
Post Count: 509
June 14, 2004 - 7:16 am
There is a considerable cost difference between the strata title process and a green title subdivision, not to mention extra delays to get the title through (typically 3 months for the green title vs 6 wks for a strata title)
The green title subdivision needs to go to through the Planning Dept. for approval whereas a strata title can be approved by the relevant shire council.
Also, there is minimal if any, sales price difference between the two, with most new strata developments having no common property and no strata levies.
Usually all they share is a commom sewer main..
KP