Hi everyone.
I was just hoping to get your thoughts and ideas on a strategy a friend told me about years ago that worked for his family and wonder if it might work for me.
Here it is:
His parents inherited a small property on a piece of land in St Kilda, Melbourne.
They wanted to knock it down to build a larger house but the costs proved too expensive.
A builder approached them suggesting an idea. Subdivide the land, and he would build 2 properties free of charge on the land and as payment he would keep one of the properties whilst the parents kept the other.
I personally love the simplicity of this approach and wondered:
- How realistic it is in today's market?
- is it really that simple?
- how do you think a local builder would react to such a proposal?
- What are the tax implications if any?
- What are the legal implications?
It is a strategy that seems rather old school but is something that appeals to me and would love to hear if anyone has done something similar or has any knowledge or advice on the subject.
I would assume that the type of land you buy and the area you buy in are essential to attract a builder. The final houses/villas would need to be of a value that would cover the construction costs and more for the builder.
I'm quite aware that this might be a completely fanciful idea and it's likely to be shot down, but I'd still like to ask the questions and see the answers.
Thanks in advance for your time.
I was just hoping to get your thoughts and ideas on a strategy a friend told me about years ago that worked for his family and wonder if it might work for me.
Here it is:
His parents inherited a small property on a piece of land in St Kilda, Melbourne.
They wanted to knock it down to build a larger house but the costs proved too expensive.
A builder approached them suggesting an idea. Subdivide the land, and he would build 2 properties free of charge on the land and as payment he would keep one of the properties whilst the parents kept the other.
I personally love the simplicity of this approach and wondered:
- How realistic it is in today's market?
- is it really that simple?
- how do you think a local builder would react to such a proposal?
- What are the tax implications if any?
- What are the legal implications?
It is a strategy that seems rather old school but is something that appeals to me and would love to hear if anyone has done something similar or has any knowledge or advice on the subject.
I would assume that the type of land you buy and the area you buy in are essential to attract a builder. The final houses/villas would need to be of a value that would cover the construction costs and more for the builder.
I'm quite aware that this might be a completely fanciful idea and it's likely to be shot down, but I'd still like to ask the questions and see the answers.
Thanks in advance for your time.