As two couples we bought 2 blocks of land in a very good area for $85,000 each ($170,000 for both) and paid $50,000 cash deposit (25K each). Each home will cost $165,000 to build as turn key complete,so each one will cost not more than $250,000 in total, we intend to on sell for minimum of $300,000 each which should give us a profit of $50,000 each or $100,000 in total.
One couple earn before Tax $45,000 (no kids) and the second couple (no kids) earn before tax $40,000 each ($80,000 total), so we have a combined income of $125,000.
Our combined total equity after mortgage in our current homes is about $350,000 (not including owned motor vehicles, furniture and the like)
The questions are…
Should we set up a company or trust to save tax?
As we will pay GST to builder is there any additional GST to be paid, say on the sale?
Should we build and sell one in this financial year then the other in 2005/06 year?
Should we put all or part of the profit into our super?
Would we have any problems borrowing this kind of money?(for one home or both)
What is the mortgage insurance situation considering deposit versus total costs for one or both homes?
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