Are really cheap sales history incorrect?

when you look at some past sales history, eg re, or rd or pf

sometimes you see some obviously suspicious sales history,

for example, a house thats advertised and the market is say $700k, and the sales history says $anything from $100k to $400k

they arent typos, and assuming theyre not subdivided off blocks,
what are they??

I assume it was a family member transferring it to another at a stupid price, however wouldnt that attract the attention of the revenue office as you are avoiding/miniminsg stamp duty or CGT??

what am I missing here??

eg
http://www.realestate.com.au/property-house-vic-frankston+south-118930847

asking price $700k,
sold for $270k
 
Yeah, it can be a % sale between family too.

One of mine has a sale at:
$165K when my wife purchased in her name.
Then it was reval'd at $250K after a reno.
$2,500 sale when she had to sell 1% to me, as the MI wanted me on title since I was on the mortgage.
 
would the revenune office sue you for neglecting to pay tax,

just like when you buy/sell a car, you can do a favour to reduce the buyers tax by declaring it less, however, you cant go silly or else you are in trouble
 
would the revenune office sue you for neglecting to pay tax,

just like when you buy/sell a car, you can do a favour to reduce the buyers tax by declaring it less, however, you cant go silly or else you are in trouble

The sale price can be low, but the transfer duty paid at market value, which means capital gains tax is paid at correct value as well.

I would guess this fairly common.
 
The sale price can be low, but the transfer duty paid at market value, which means capital gains tax is paid at correct value as well.

I would guess this fairly common.

whats hte point of declaring at low prices if transfer duty and cgt is being paid to the full?

are they trying to bring the median price of the suburb down???? ;)
 
Not sure of other states, and this comment came to me many years ago, in QLD the transfer Document is manually entered into the Depart Of Natural Resources data base. At that time I was told that the error level was as high as 30%. RPData etc get their data from this department so they may not be aware of the error.

Duty is collected by a different department and directly from the Contract.

In the example .. offers over $700,000 selling for $270,000 the typo may have been the sale was actually $720,000.

Just offering a possible plausibly explanation.
 
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