I was recently in a real estate agency enquiring about a property.
It was a common old rentable three bedroom property; the agent bought out these plans and said it has two planning permits approved by council.
I said to him what is the benefit of buying a property with plans already approved why does not the person that made the plan going ahead with it?
His reply was something vague like “it saves you time doing it”. It’s an answer that didn’t really even give me any reason to think that the property was worth buying because of this?
I asked my teacher yesterday. Why do people sell properties with also a plan to build units or houses with them? And why don’t they build them themselves?
He said it’s because you then don’t have to pay any Stamp Duty.
To try to get more clarity on this, if I bought a property that had Council Approval to build units or house(s). Do I pay no stamp duty? But then if I buy it and decide not to build and instead 6 months down the track indeed don’t build then will I still own the property (the old existing house) and have payed no stamp duty?
What’s the deal on this?
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Interested in Joint Venture Reno ProjectsAlmost Jaffa,
If you buy land for $100K you pay SD on that amount.
If you then build 10 units you get them at cost price.
Land plus units = a property worth $2M but you only paid SD on the initial $100K.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It was a good try.
I see so the next person that comes along and buys your 2M units will pay $110,000 stamp duty(Vic).
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Interested in Joint Venture Reno Projectsyep
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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