Dual Occ JVs

[asdf]

For the accountants out there who can comment on this scenario: You purchase a dual occ site to develop with another partner as say tenants in common and then after the construction and sub-division goes through, do you:
1) register both parties as tenants in common over both property; or
2) split the title so you both get one duplex each.

I can see issues with mortgagee for both options: 1) probably just consent for new DPs to be registered? but for 2) all new loan docs and assessments maybe required as individual owners? Previous construction loan probably needs to be paid out and possibly re-fi if required/possible.

And for CGT purposes:
1) cost base will flow through and each entitled to 50% each. What if one duplex sold first? Do we half the cost base and work out CGT from there then share the gains?
2) would assume the cost base will be 50/50 rolled over to new ownership.
I think I could probably search for answers for these here.

Any advice or previous experience in sorting out the titles and ownerships for these, please feel free to comment. Thanks in advance!

 

[grossreal]

hi asdf
I am not an accountant and do your own due dilegence.
but if the property was in a company and a unit trust then the division is
alot simpler and the unit can be separated depending on the trust but this structure does need to be organised before purchase.
not sure on tenants in common as i don't do them

 

[Ausprop]

it's no biggy asdf... I have done both scenarios before. it depends on yhour intentions, so startign at the beginning...

is it BnD or intention to sell? if the later... GST registration

if the later, then it doesn't matter, let it go thru as split ownership across each unit

However I think it easier to hold one in each name, then you are free of each other and can make your own decisions. you must maintain equivalent holding ownership %'s else you may incur some stamp duty and possibly trigger some CGT? (or income tax as it would be revenue if intendingto just sell)

i am not sure what dual occ actually means but i assume it just means a duplex set up, so just instruct your solicitor whn applying for the new titles how you want it to go