ppor with carpark on seperate title

[alpina]

hypothetical question:

if a person had a ppor with no carspace or parking and then decided to buy a carspace down the rd on a seperate title to park his or her car, would that person be liable for cgt on the carspace on sale?

regards,

julie

 

[alpina]

bump!

noticed that no one answered this question and still curious to know the answer?

cheers,

julie

 

[handyandy]

Hi Julie

I would think it would be viewed as a seperate 'investment' and as such would be liable to CGT.

A friend has exactly this situation with a unit having a garage on a seperate title. In this case they have to pay land tax for the garage although it is part of their PPOR.

Cheers

 

[Pushka]

We have a similar thing - a boat mooring on a separate title to the apartment. Certainly subject to CGT, and also, we werent able to get finance on a boat marina, not sure if they treat car parks in the same manner!

 

[Twitch]

I would have thought that the title could be amended to include the car park. A quick call to the solicitor you used for your conveyencing should give you the answer.

 

[handyandy]

I would have thought that the title could be amended to include the car park. A quick call to the solicitor you used for your conveyencing should give you the answer.

Would involve amending strata title plan, which will affect everybody in the plan.

 

[alexlee]

Presumably one can write the strata plan to whatever you want when you develop a property. Does that mean it would be better to have separate titles between the carspaces and units, so that carspaces can be traded more easily? I can imagine how this would be useful if your development was close to the city / a uni and you can rent / sell the carspace.
Alex

 

[D.T.]

Alex, if it were in the city, don't bother building any units on it, only build carparks. People will pay their $10 a day each and you'll make alot more money

 

[alpina]

not really the answer i wanted to hear

given that it will not generate any income (will be used for personal use as ppor does not have parking) but will be liable for body corp fees etc, will i still be able to claim these expenses?

there must be a way a way to get an exemption - surely sanity must prevail?

cheers,

julie

 

[JoannaK]

sorry julie, but everyone who has answered is correct.

my friend went through this same thing 2 years ago...terrible hassle for her, particularly with finance.

 

[Pushka]

It is just like a Beach house that you dont rent out! We paid interest on the loan we took out to buy it, pay Council, ESL and water rates (even though we have a septic and cant drink the water!) and when we get to sell it, have to pay CGT on the 'profit'. Ha!

 

[alpina]

big caveat here but just had a conversation with a legal person and was given a view that if the carpark is (1) used in conjunction with the home and (2) sold inline with the home at time of sale that it would be exempt of cgt.

interesting

julie