Was just talking to the conveyancer today about a possible upcoming deal which involves buying 2 IP's side by side (and on the same day).
Was told to be aware that the Victorian State Revenue Office might combine the values together and charge duties on the higher/combined value – even though they were seperate contracts.
When they realised that I was staggering the settlements (30 & 60 days), it appears I should avoid the issue (I hope).
Never heard of this before…………so wondered if our learned members knew of it?
In NSW using different entities wouldn't work if they were classed as related entities – same people/relatives controling. I haven't looked at the situation in VIC, it may be possible but check with a solicitor first.
You may need to stagger the purchases over 12 months to avoid aggregation.
Hmmm…..I found and noticed that little bit about the 12 months too Terry. Is it actually referring to total properties, not necassarily adjoining like I first posted?
Can't stagger purchases as they are being sold at auction on the same day & only certain terms available to me. Since the value will not be very large (in my case) due to being very cheap commission houses (less than 100K), I'll just be going with the flow – but this 12 month thing would affect investors buying a few large value properties per year, wouldn't it.
I wonder how the revenue office decides on the duties payable if purchased spaced say every 3 months? And over which 12 months – Calendar, Financial or rolling?
Could they charge you retrospectively? Coz to be honest, I am thinking of purchasing a few more of these type of cheaper properties down the track.
[edit] Actually…….. I've just remembered we've already done two purchases 3 months apart before (3 years ago) and we didn't get stung with this – maybe it's only if they notice (or is actually adjoining)?
From what I can see though if the properties are advertised seperately and the purchase of one is not dependant on the other you will be fine.
Stamp duty savings are significant. 5 x $130000 properties seperatly is something like 14k total, one 650000 property 27k (from memory, please don't quote me )
From what I can see though if the properties are advertised seperately and the purchase of one is not dependant on the other you will be fine.
Stamp duty savings are significant. 5 x $130000 properties seperatly is something like 14k total, one 650000 property 27k (from memory, please don't quote me )
It certainly looks like your link explains it as you mention. Great stuff and thanks for digging it up
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