Hi All,
We've been considering buying a property with relatives (property yet to be searched for / located) that can be subdivided and are trying to work out the best way to structure such a purchase. Both properties would be being purchased as medium to long term IPs and they have to end up on their own separate title. I don't want to end up in a long term joint ownership situation. In which case we'd either;
1) Buy an old house on a suitable size and suitably zoned block (land value type purchase), subdivide, demolish & rebuild semis,
2) Buy a sound house on a suitable size and suitably zoned block that was suitable to subdivide & renovate / extend to convert into semis,
There are other options like buying two Semis being sold together if we're lucky enough to find them or buying two completely separate Semis in their own right, but there is less value add opportunity in the latter especially.
In the event that we ended up with option 1 or 2 we'd have to work out the best way to structure the purchase. Options 1 & 2 would involve buying One Property jointly with our relatives (another couple). So there would be four people with an interest in the property prior to subdivision being finalised and the titles separated. We'd need a JV agreement to cover off on the variables and clearly state the plan and objectives of course.
Executing a project like this would involve us firstly having to jointly purchase a suitable house / block, there would then be a holding period while we had it subdivided and for any renovation / buiding work involved with physically turning the property into two semis. If the house was livable we'd rent it out while we waited for Subdivision, Renovation / Building Approval.
* What I want to know is what would be the best way to execute a project like this in terms of how we would purchase / own the property prior to subdivision? I think buying it in all four names and then separating the titles on subdivision to one title per couple would trigger Stamp Duty again. That would likely cost us an additoinal 20-30k each! (We'd be looking at Semis worth at least 800k on completion.
Is there a way to avoid paying Stamp Duty twice? Any suggestions regarding the best way to structure ownership for a purchase like this would be appreciated? Anybody done something similar who can share how they went about it?
Thanks,
MF35.
We've been considering buying a property with relatives (property yet to be searched for / located) that can be subdivided and are trying to work out the best way to structure such a purchase. Both properties would be being purchased as medium to long term IPs and they have to end up on their own separate title. I don't want to end up in a long term joint ownership situation. In which case we'd either;
1) Buy an old house on a suitable size and suitably zoned block (land value type purchase), subdivide, demolish & rebuild semis,
2) Buy a sound house on a suitable size and suitably zoned block that was suitable to subdivide & renovate / extend to convert into semis,
There are other options like buying two Semis being sold together if we're lucky enough to find them or buying two completely separate Semis in their own right, but there is less value add opportunity in the latter especially.
In the event that we ended up with option 1 or 2 we'd have to work out the best way to structure the purchase. Options 1 & 2 would involve buying One Property jointly with our relatives (another couple). So there would be four people with an interest in the property prior to subdivision being finalised and the titles separated. We'd need a JV agreement to cover off on the variables and clearly state the plan and objectives of course.
Executing a project like this would involve us firstly having to jointly purchase a suitable house / block, there would then be a holding period while we had it subdivided and for any renovation / buiding work involved with physically turning the property into two semis. If the house was livable we'd rent it out while we waited for Subdivision, Renovation / Building Approval.
* What I want to know is what would be the best way to execute a project like this in terms of how we would purchase / own the property prior to subdivision? I think buying it in all four names and then separating the titles on subdivision to one title per couple would trigger Stamp Duty again. That would likely cost us an additoinal 20-30k each! (We'd be looking at Semis worth at least 800k on completion.
Is there a way to avoid paying Stamp Duty twice? Any suggestions regarding the best way to structure ownership for a purchase like this would be appreciated? Anybody done something similar who can share how they went about it?
Thanks,
MF35.
