Owner builder ? Build and sell

My spouse is currently unemployed. So I am thinking to buy a new land in her name released by landcom, build a house and sell as soon as possible.

Please advise what is the best set up to buy and build. Please note Landcom only allows to buy land in individual names. So setting up trust etc is out of question I think. We can buy the land either in my spouse?s name or both of our names.

What set up is best to construct the house? Can we form a new company and build ourselves? What are the GST and capital gain implications?
 
Buying then selling land wont attract GST as only "new residential premises" are subject to GST. No house, no GST. If you were to build a home then sell it yes GST is a distinct possibility.

Its difficult to fathom how you could profit from acquiring land, holding it then selling. You arent getting cheap land from landcom and as I recall they often have some conditions on resale. There are NO tax deductions available (since it wont earn assesable income). Stamp duty may apply to the acquisition (or perhaps fall under first homeowner concessions ??- But again its just land so I doubt that).

When its sold all the costs of acqusition are added to the cost. Also added are the build, fees, etc. Perhaps rates, interest (?) etc. Now here is the kicker.... Any profit is unlikely to be considered a capital gain. Its likely to be considered ordinary income and taxed. Why no capital gain ?? Your purpose to acquire is to make a profit on sale. Thats ordinary income.

The best way to construct is to look at project builders first. Find a design that is low cost for what you perceive is a desired design for the market you intended to sell to (Forget what you like !! You arent building for you). Homeworld and similiar exhibition places are a good first start. Project homes will avoid costs of design etc.

One way around this whole matter could be to have the intention to buy land a build a home for the two of you asap. As soon as its completed move in. Then put in on the market and sell. Then move out before it settles. Main residence CGT exemption, first home buyers benefits etc may make this viable. Of course a lender may have issues with the buyer having no job to service the loan. Perhaps a joint acquisition ?? At least joint borrowers.
 
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