I have a site which is 800m2.
And my options are: to either build 3x large 28sq townhouses or 4x townhouse (2x 17sq townhouses and 2x 21sq townhouses).
Paid $1.2 Mill for the site a corner lot in Essendon.
I want to keep the first townhouse and sell the remaining townhouses.
I know if I build 3x large townhouses they will sell for just over $1mill (3x $1mill = $3mill)
compared to the
4x townhouses which would in the range of ($680k for the 17sq’s = $1.36mill)
($750k for the 21sq townhouses = $1.5mill) = $2.86mill
Cost of construction would be almost $1mill for complete completion for either 4x townhouses or 3x large townhouses.
All townhouses would be detached.
The land was purchased under a trust.
How much tax would I need to pay if I decide to sell 3x or 2x townhouses (Note I would keep the 1st townhouse for myself)
Would it be wiser to sell off the plan and are there any tax benefits by doing this.
So if I build 3x townhouses and sell 2x townhouses how much tax would I be required to pay (A builder would be building so I would have no part in the construction of the townhouses)
Also if I was to build 4x townhouses and keep the 1st one and sell the remaining 3x townhouses what tax implications would I encounter and what would be the best path to take.
I want to use the funds from the sale to fund another project.
If someone could shed some light on this it would be of great help.
And my options are: to either build 3x large 28sq townhouses or 4x townhouse (2x 17sq townhouses and 2x 21sq townhouses).
Paid $1.2 Mill for the site a corner lot in Essendon.
I want to keep the first townhouse and sell the remaining townhouses.
I know if I build 3x large townhouses they will sell for just over $1mill (3x $1mill = $3mill)
compared to the
4x townhouses which would in the range of ($680k for the 17sq’s = $1.36mill)
($750k for the 21sq townhouses = $1.5mill) = $2.86mill
Cost of construction would be almost $1mill for complete completion for either 4x townhouses or 3x large townhouses.
All townhouses would be detached.
The land was purchased under a trust.
How much tax would I need to pay if I decide to sell 3x or 2x townhouses (Note I would keep the 1st townhouse for myself)
Would it be wiser to sell off the plan and are there any tax benefits by doing this.
So if I build 3x townhouses and sell 2x townhouses how much tax would I be required to pay (A builder would be building so I would have no part in the construction of the townhouses)
Also if I was to build 4x townhouses and keep the 1st one and sell the remaining 3x townhouses what tax implications would I encounter and what would be the best path to take.
I want to use the funds from the sale to fund another project.
If someone could shed some light on this it would be of great help.