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From: Samantha Lind


Hi everyone,
Thanx for reading my letter and hopefully giving me some useful advice.
Basically I have the opportunity to purchase an interiorly challenged villa one block back from a Syd. beach. I can get it at a good price and am aiming for a delayed 3mth settlement. I've got my team ready to go in regards to refurbing it and hope to finish refurb in 2wk time frame. I was then planning to sell the prop at my new and somewhat larger price and have a back-to-back settlement on the prop.
Is there a way for me to avoid paying stamp duty on the prop? Can I get my buyer to pay for everything through dispersements?
Look forward to reading everyone's advice and hopefully pulling off my first trade. Oh yeh, I can settle the prop. myself if I have to - just trying to avoid it if possible.
Thanx Sam
 
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Reply: 1
From: Frode Egeland


>Is there a way for me to avoid
>paying stamp duty on the prop?

Hi Sam,

If you put the magic words "and/or nominee" after your name on the contract, you can then assign the contract to your buyer at the closing. (for a fee, which would be your profit margin)

This is commonly called 'flipping'.
Since your name is not put on the title, you don't pay stamp duty. Your only expenses will be the reno. costs, and legals.

(people, please correct me if I've missed anything)

Cheers,
Frode
CashflowSydney
 
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Reply: 1.1
From: Delia L


Hi all the gurus out there,

Please correct me if I'm wrong. I thought in NSW I can only nominate my family members or trust and not for unrelated parties.

If it's wrong, then I'll be celebrating as I'm thinking to avoid using options (the developer wanted sales contracts and not options) and still not have to pay s/duty legally to onsell off the plan unit using "and or nominee" rather than using options.

Delia
 
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Flipping and Stamp Duty...

Reply: 1.2
From: Ross Sondergeld


Hi Frode,


Sam orignally asked - "Is there a way for me to avoid paying stamp duty on
the property?"

Then Frode said, "If you put the magic words "and/or nominee" after your
name on the contract, you can then assign the contract to your buyer at the
closing. (for a fee, which would be your profit margin). This is commonly
called 'flipping'. Since your name is not put on the title, you don't pay
stamp duty. Your only expenses will be the reno. costs, and legals. people,
please correct me if I've missed anything.)

############

Hmmmm... I actually asked a friend (that knows that answer) and he/she said,
"two stamp duties would apply". (Source: Confidential.)

#############


Ross on the Gold Coast

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
" Imagine buying real estate the easy way... "

Buyerside Real Estate Mobile 0412 289 464
Office 9b, 34 Glenferrie Drive Office (07) 5562 1555
East Quay Corporate Park Fax (07) 5562 1248
Robina QLD 4226, Gold Coast [email protected]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.
 
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Flipping and Stamp Duty...

Reply: 1.2.1
From: The Wife


Ross....

You really are safe in you're job, I really dont know why you are so distressed about flipping, let it go man.


~Life is a daring adventure, or nothing at all~
 
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But you all missed the best bit.

Reply: 1.2.1.1
From: Owen .


I think the true value of this conversation is the introduction of a new term - "interiorly challenged" !!!

That's fantastic. Well said Samantha.
 
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Reply: 2
From: Mike .


Hi Samantha,

Can't help you with Stamp Duty question but I'd like to know how you arranged access into the property for renos BEFORE settlement.

I thought access was only available at completion of settlement when the keys to the property were handed over. This would apply whether settlement was long or short.

The only exception I have heard of is to show potential tenants through with a view to having the place tenanted at settlement.

Did you negotiate access into the terms of the contract?

Regards, Mike
 
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Reply: 2.1
From: Apprentice Millionaire


Hi Mike,

I haven't yet settled on my first IP yet, but as part of the contract, I got a letter signed by the vendor that I could have access to the property for fencing and landscaping.

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)
 
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Reply: 1.3
From: Grant A-Y


On 5/7/01 7:41:00 PM, Michael Croft wrote:
>Hi All,
>
>In the ACT stamp duty is
>payable within 30 days of
>exchange, period! So flippers
>be warned.
>
>Michael Croft
Micahel, I have two IPs in Canberra and Stamp Duty must be paid within 90 days of exchange (Just checked with Dpt Treasury & Infrastructure as I x'd one mid March.

Grant A-Y
 
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Reply: 2.2
From: Samantha Lind


Hi all,
Thanx for everyone's input.
Mike I got access easily by including it in my contract. Solicitors can readily do this for you.I also sweetened the deal for the vendor who has already moved out and into a retirement village.
I found a way around the stamp duty problem so here's hoping I can pull it all off.
Owen glad you found my terminology amusing - happy to oblige.
In regards to "flipping", I thought "flippers" went into the deal knowing that they couldn't settle and therefore were reliant on the resale of the prop.Please enlighten me on this point.
Let you all know when I've pulled it all off.
Thanx Sam
 
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Reply: 1.3.1
From: Grant A-Y


Michael,

Just illustrates the benefit of this forum, and the free exchange of ideas.

Grant
 
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Reply: 1.1.1
From: Paul Zagoridis


I replied to this a couple of days ago but I think I got disconnected before it saved. oh well

Office of State Revenue administers Stamp Duty in NSW. adding "and/or nominee" lets you structure your own purchases. If you attempt to transfer your interest in the contract, the OSR sees it as another sale and asses Stamp Duty on the full value for each transaction.

There used to be a way to buy/transfer property without paying Stamp Duty but those loopholes got closed 1 July 1998.

There are ways of using options to achieve similar results, but it does involve getting the vendor to take the option.

Regards

Dreamspinner
 
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