Hi guys
I am looking at buying a block of land with 5% deposit and a long term settlement (12 months) and i am planning to
sell it before settlementJust want to know if its a good idea doing this? and what are the things that i need to consider for this
eg conveyancer, or loan approvals CGT etcPlease suggest as i am new to property investment
What you have to think about is risk.
Are you able to hold on to this property in 12 months time if you cannot sell it for a profit.
Are you able to build on it and sell a house and land later f you cannot sell it for a profit .
This is sometimes referred as PLAN BCapital Gains Tax needs to be considered.
Keep records of your costs incurred as your accountant may be able to add them to the cost base later when you sell.
another trick I have read about is to buy from the last stage of land release from the land developer.
Stamp Duty , needs to be considered also
is it a good idea ? it depends on if land value increases but it may be the only way for you to afford to get into the market.
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