Hi all,
First time poster, long time lurker
I'm about to place an offer on a mixed commercial/residential "townhouse" in Sydney. The building is zoned "Business" and I have been told by the agent that I would be required to pay GST on 20% of the settlement price (which is the proportion of the building relating to commercial).
To provide some context, a large part of the ground level is commercial, with the 2 levels above being residential. The agent also told me that the loan on the building with the banks would most likely be commercial and not residential. She also told me the 20% GST is refundable when the quarterly BAS is filled.
Questions:
1. If the property is mainly residential, would the loan have to be commercial property? I made a quick call to CBA and they told me it would most likely be approved for a residential mortgage, subject to their valuation.
2. My brother and I are jointly purchasing the property. Could it be purchased in our names? If so, what are the GST implications and would I be able to receive a refund on the GST payable? Or does it need to be purchased under an ABN/Business Name/Company name?
Thanks
First time poster, long time lurker
I'm about to place an offer on a mixed commercial/residential "townhouse" in Sydney. The building is zoned "Business" and I have been told by the agent that I would be required to pay GST on 20% of the settlement price (which is the proportion of the building relating to commercial).
To provide some context, a large part of the ground level is commercial, with the 2 levels above being residential. The agent also told me that the loan on the building with the banks would most likely be commercial and not residential. She also told me the 20% GST is refundable when the quarterly BAS is filled.
Questions:
1. If the property is mainly residential, would the loan have to be commercial property? I made a quick call to CBA and they told me it would most likely be approved for a residential mortgage, subject to their valuation.
2. My brother and I are jointly purchasing the property. Could it be purchased in our names? If so, what are the GST implications and would I be able to receive a refund on the GST payable? Or does it need to be purchased under an ABN/Business Name/Company name?
Thanks