From: Manny B
Howdy there,
I'm looking at a property that has a 12 month settlement on it which I was hoping to purchase & get town-planning approval on it (having it as a condition of sale for me to do that) & then on-selling it with a profit hopefully prior to the 12 month settlement...
My question is (for anyone that has done this):
a. would I still have to pay stamp duty if the new buyer can settle the property at the 12 month period?
b. would the profit be classified as CGT?
My thought is that if I had to pay stamp duty, that I might as well hang on to it & just find a developer to build the townhouses on it with an agreement that he keeps 3 & I keep the other 3 (townhouses in the area are around $450k each)... which would be more profit for me, but the risks would be far higher (ie. builder going broke, etc.)...
Thanx in advance,
Manny.
Howdy there,
I'm looking at a property that has a 12 month settlement on it which I was hoping to purchase & get town-planning approval on it (having it as a condition of sale for me to do that) & then on-selling it with a profit hopefully prior to the 12 month settlement...
My question is (for anyone that has done this):
a. would I still have to pay stamp duty if the new buyer can settle the property at the 12 month period?
b. would the profit be classified as CGT?
My thought is that if I had to pay stamp duty, that I might as well hang on to it & just find a developer to build the townhouses on it with an agreement that he keeps 3 & I keep the other 3 (townhouses in the area are around $450k each)... which would be more profit for me, but the risks would be far higher (ie. builder going broke, etc.)...
Thanx in advance,
Manny.
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