Reno and sell with partners

From: J Parker


G'day all!

Have some questions for those of you experienced in the "fluff and flick" industry, buying, renovating and selling property. I'm about to embark on such a project with a relative. Not having done this before I (naturally) have some questions. I am fully aware of the implications of being involved in partnerships (especially with family!) but would be interested in hearing from those who have travelled this path before.

To give a basic rundown, the two of us intend to go halves in the entire project, with everything split down the middle. We are currently researching areas in Sydney where we can make a profit on a cosmetic renovation. We have set ourselves a minimum profit figure and are prepared to rent it out for a year if we do not make this when we sell.
Having had some experience in renovating, we are looking forward to this. However, we are unsure as to how we should structure the partnership.

Should we be setting up a joint venture agreement?
To minimize capital gains tax (as we intend to sell soon after renovating- 6-10 weeks after settlement) is there anything we should be/not be doing?

I would be particularly interested in hearing from other renovators in Sydney who have done this recently. Success stories are warmly welcomed!
Cheers, Jacque :)
 
Last edited by a moderator:
Reply: 1
From: Glenn Mott


Hi Jacque,

While not experienced in the "fluff and flick" industry (sounds interesting
though!), I feel that some type of unit trust would probably be what you are
after. That would allow the trust to distribute income/gains to the unit
holders on a pro-rata basis. This may also allow the unit holders to
buy/sell units in the trust at their discretion.

Regards

Glenn

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: Tuesday, 3 September 2002 8:54 AM
Subject: Reno and sell with partners


From: "J Parker" <jacqueparker@ozemail.com.au>

G'day all!

Have some questions for those of you experienced in the "fluff and flick"
industry, buying, renovating and selling property. I'm about to embark on
such a project with a relative. Not having done this before I (naturally)
have some questions. I am fully aware of the implications of being involved
in partnerships (especially with family!) but would be interested in hearing
from those who have travelled this path before.

To give a basic rundown, the two of us intend to go halves in the entire
project, with everything split down the middle. We are currently researching
areas in Sydney where we can make a profit on a cosmetic renovation. We have
set ourselves a minimum profit figure and are prepared to rent it out for a
year if we do not make this when we sell.
Having had some experience in renovating, we are looking forward to this.
However, we are unsure as to how we should structure the partnership.

Should we be setting up a joint venture agreement?
To minimize capital gains tax (as we intend to sell soon after renovating-
6-10 weeks after settlement) is there anything we should be/not be doing?

I would be particularly interested in hearing from other renovators in
Sydney who have done this recently. Success stories are warmly welcomed!
Cheers, Jacque :)



To reply: mailto:propertyforum.109163@bne003w.webcentral.com.au
To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
To login: http://bne003w.webcentral.com.au:80/~wb013
 
Last edited by a moderator:
Reply: 1.1
From: Jerry Maguire


hi jacque,
i've been there and done the reno thing myself with family members and investors as well.
what i do is set up a trust and pay them a percentage of the profits by using their money while i do the reno
 
Last edited by a moderator:
Top