Dual occupany, company title & tax

[forrestd]

I'm about to make an offer on a knockdown property in Sydney. I will eventually build a duplex on the site. The property is under Randwick council, which apparently doesn't allow strata subdivisions for anything under 900sqm.

The agent says the dual occupancy will have to be done under company title - the block only being 650sqm... Has anyone done this? and what are the approximate setup and ongoing costs..

Should it be purchased initially under company title, or can I buy it in my own name and convert to company title later? (when I actually build)

Are there any tax implications? bearing in mind I will be negative gearing the place initially.

thanks for any pointers.

Duncan

[see_change]

I'm about to make an offer on a knockdown property in Sydney. I will eventually build a duplex on the site. The property is under Randwick council, which apparently doesn't allow strata subdivisions for anything under 900sqm.

The agent says the dual occupancy will have to be done under company title

Duncan

The first thing I'd do is double check the info. Doesn't sound correct.

Under Dual occ provisions you can do detached dual occs down to 600M2 , and attached down to 450.

The council regulations determine whether you can subdivide or not but if you can't subdivide , my understanding is that they stay on the one title, and I don't think it's company . Just your standard title. .

Check with Council first ( though don't believe what you're told). Look up the relevant regulations yourself. There will be someone in the area who acts as an advisor in the area for potential developers. I found our local one ( of several ) by talking to various local agents. He spent about 20 years working for the local council. You want someone like that as they will have a better understanding of how the council does or doesn't work.

Some agencies wiill have an agent who has more of an interest in small developments. Ring up several agents in the area, and ask if they have some one who does that. Talk to them , Pick their brains and see who they recommended.

I've done this in Kuringgai and I was told the same name by several unrelated people. Actually I was only told one name....

See Change

[forrestd]

thanks see_change,

I just called Randwick council, they confirmed their 900sqm rule, no strata sub-divisions allowed.

I think i'm mixing up dual occupancy and company title, which are actually distinct things. They also told me the company title provisions are about the 'change imminently'... but can't give me any further details... eek.