It would be subject to CGT because you cannot claim the main residence exemption for vacant land, unless you build within 4 years. But this doesn’t necessarily mean any tax would be payable – depends if there is a profit after costs.

The fact that the money came from the sale of the main residence prior to this is irrelevant.

I could help on the structure and tax side, but I don’t practice property law so cannot really assist in that area, but I know a bit. I am also conducted some lease options myself in the past – but would not do again. I am sydney based.

When the tenant wants to buy the property (ie become legal owner) they would apply to a lender, just like normal. But the lender will need to know the details such as they have been paying extra rent which goes towards a deposit and that they will be buying under market value. These sorts of things are difficult to finance unless the LVR is under 80%. Tenants will still have to prove income and demonstrate serviceability etc.

A person taking an option over a property has a caveatable interest so they can lodge a caveat. This will show everyone that they have an equitable interest in the property. The owner could try to refinance or increase loans etc but any prospective lender will see the caveat and be unlikely to lend while it is in place. You would also contract with the owner that they cannot increase the loan.

Incidently the owner would be in breach of their mortgage agreement if they allowed a caveat to be lodged.

I don’t know – you will have to ask the person that advised you. If they think you do need a valuation ask them for the legislation which requires this.

This is why careful record keeping is essential, and this is even more important for when you die because the executor and/or beneficiaries need to find this information.

yes

1. Exempt from CGT if sold within 2 years. Thereafter if you rent it the cost base will be the value at death.
2. Cost base will be his cost base.
3. cost base will be his cost base.

Confirm this with your tax advisor as I have made a few assumptions.

Don’t you need the diploma course now, and not just the Cert IV?

I’ve never looked into this, but a colleague did a conveyancing matter where the vendor used a put and call option to delay entering the contract (but lock it all in) and when asked why they stated for CGT reasons.

This year