My husband and I currently joint-own an investment property at Moorooka:
• The property was purchased in 2006 and the estimated current capital gain value is around $120K.
• We are planning to put a DA on and then develop the property into 5 units within the next 6 months.
• The ownership is currently split at 80:20.
•
My plan is to transfer my share (80%) to make it more balanced at 50:50 and pay the capital gain before the DA is finalised. We intend to keep all the units or at worst, just sell only one unit.
Would the above structure be the best way forward.
Thanks in advance for your advice
I know someone will ask because it has relevance, so I'll post the answer. Moorooka is in QLD.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Jac you read my mind. I was going to ask is that in VIC? ha ha.
Wendy,
The following factors need to be considered:
Taxation
CGT
Stamp Duty
Land Tax
Asset Protection
Contribution
Long term goals
succession
ability to transfer to a SMSF later.
etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Wendy
What Southern heathens we have answering the thread and apologies for theie lack of Brisbane geographical knowledge.
Moorooka is about 7 km's south of Brisbane and home to Toohey Forest Park and the magic mile car yards.
Certainly a good suburb for development activity and i have done many a deal in both Moorooka and Annerley alike.
Now back to the question.
As well as the points Terry has highlighted the question is more how you will fund it.
Certainly you will hopefully have an element of equity in the deal having purchased it in 2006 but the number of units in the development will put it outside of traditional residential funding.
Also got to bear in mind you will need to show serviceability not only on the development whilst it is being constructed (assuming you cannot capitalise the interest) as well as at the end once the units are complete and you intend to retain them.
I would be getting the structure sorted out first before you develop as otherwise the Transfer costs down the track will be a lot more expensive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
