Hi there
i've been browsing this helpful forum for quite awhile trying to find out some information about this, but I am still confused about GST and buying off the planI'm interested in purchasing an apartment in a development in VIC which is expected to be completed in the next three months. This will be my first PPOR. The contract states purchase price + GST and that the purchaser warrants that it is registered or will be registered for GST.
My finance will be subject to valuation. Would any valuation of the property include GST? Would I be expected to register for GST in order to purchase this property given the GST clause and, if so, why would that be? I'm obviously completely clueless about this whole process and would appreciate any information or advice the members here can offer!
Any offer that I'd make would be gst inclusive, especially if you aren't registered for gst. This is a negotiable point, the vendor may wish to adjust (but I wouldn't agree to an adustment for gst). You will not be able to recoup the gst when you come to sell the property so it will inflate your costbase by 10%.
The valuation will take gst into account as it applies to residential property ie included in the price and the vendor pays 1/11th of the price paid by the purchaser. Speak with your solicitor & accountant to clarify if you need to.
Thanks Scott, much appreciated!
Have put my offer in inclusive of GST, so i'll see how it goes
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