Hi All,
I'd appreciate people's thoughts on the following deal.
My grandmother currently owns a holiday house in an attractive beachside town about 1 hour from Perth. She bought it pre CGT and owns it outright.
The house on it is Asbestos and is like a large holiday shack that has been used by the family as a holiday retreat for the last 50 years (or so). In it's current condition is would be difficult to rent.
The house was originally to go to my mother, and her 4 brothers, upon her death, but both my grandmother and her husband will need to go into nursing homes soon as they are both very frail. My mother and her brother are Enduring Power's of Atorney for my grandparents as they are both suffering "mental degradation". To pay for the care that my grandparents require, it has been decided to sell the holiday home.
I think that this block of land is a gold-mine, being about 500m from a river and the ocean, and fronting onto a golf course in a town that is becoming very attractive as a holiday destination (you need to book at least a year in advance to get a camping spot, or a caravan berth). There are also recent developments close to this are, and it is in a growth coridor of Perth (though probably 5-10 years away from major development).
As such I have expressed an interest in buying this land.
After discussion with my mother and her brothers my feeling is that the best structure would be for me to buy 50% of block from my grandmother (at land value) and as a joint venture, to demolish the house and build another, more modern house and then to rent it out, either as a residential rental, or as holiday accomodation. The remaining 50% interest would then pass to my mother and her siblings upon my grandmothers death.
How should we stucture this?
I was thinking of a trust of some sort, and have remaining interest in the property willed to the trust in which my mother et. al. would become unit holders/beneficiaries.
Can we do this, and if so, how can we protect the interests of my mother and her brothers. I was thinking Caveat's on the land to be rescinded upon issue of the trust units.
Is this feasible?
I've still got some research to do on the development costs, land values (though I've got a pretty good idea, having been watching the area for a while) and the demand in the area.
Any other comments, or anything that I've overlooked?
Thanks for your time
I'd appreciate people's thoughts on the following deal.
My grandmother currently owns a holiday house in an attractive beachside town about 1 hour from Perth. She bought it pre CGT and owns it outright.
The house on it is Asbestos and is like a large holiday shack that has been used by the family as a holiday retreat for the last 50 years (or so). In it's current condition is would be difficult to rent.
The house was originally to go to my mother, and her 4 brothers, upon her death, but both my grandmother and her husband will need to go into nursing homes soon as they are both very frail. My mother and her brother are Enduring Power's of Atorney for my grandparents as they are both suffering "mental degradation". To pay for the care that my grandparents require, it has been decided to sell the holiday home.
I think that this block of land is a gold-mine, being about 500m from a river and the ocean, and fronting onto a golf course in a town that is becoming very attractive as a holiday destination (you need to book at least a year in advance to get a camping spot, or a caravan berth). There are also recent developments close to this are, and it is in a growth coridor of Perth (though probably 5-10 years away from major development).
As such I have expressed an interest in buying this land.
After discussion with my mother and her brothers my feeling is that the best structure would be for me to buy 50% of block from my grandmother (at land value) and as a joint venture, to demolish the house and build another, more modern house and then to rent it out, either as a residential rental, or as holiday accomodation. The remaining 50% interest would then pass to my mother and her siblings upon my grandmothers death.
How should we stucture this?
I was thinking of a trust of some sort, and have remaining interest in the property willed to the trust in which my mother et. al. would become unit holders/beneficiaries.
Can we do this, and if so, how can we protect the interests of my mother and her brothers. I was thinking Caveat's on the land to be rescinded upon issue of the trust units.
Is this feasible?
I've still got some research to do on the development costs, land values (though I've got a pretty good idea, having been watching the area for a while) and the demand in the area.
Any other comments, or anything that I've overlooked?
Thanks for your time
