Hi Everyone,
Have come across a property that is of interest to us and need some advice in terms of capital gains. Basically we have found a property that is selling 2 seperate titles on the one sale, one with a house and the other is vacant land. Both resi zoned.
The plan would be to go through with the purchase and then sell the vacant land off by itself straight away. Now lets say the purchase price was 600k, the house by itself was worth 450k and land was worth 250k.
What happens in terms of capital gains? In one sense we have made capital gains because we will end up with a house well under market value but on the other hand have we really made money off that one title?
Sorry if this is confusing, just trying to get my head around what would happen.
Thanks,
Andrew
Have come across a property that is of interest to us and need some advice in terms of capital gains. Basically we have found a property that is selling 2 seperate titles on the one sale, one with a house and the other is vacant land. Both resi zoned.
The plan would be to go through with the purchase and then sell the vacant land off by itself straight away. Now lets say the purchase price was 600k, the house by itself was worth 450k and land was worth 250k.
What happens in terms of capital gains? In one sense we have made capital gains because we will end up with a house well under market value but on the other hand have we really made money off that one title?
Sorry if this is confusing, just trying to get my head around what would happen.
Thanks,
Andrew