hey im just after some feedback from people abit more experienced in property than i am, im thinking of buying a corner block and subdivide the land to sell the backyard off, as just a parcel of land, in NSW coast where new land is hard to come buy, i think it would get snaped up fairly quick..
Has anyone else done anything similar to this, i dont want to build a duplex just sell the yard off, and let the new owners worry about building. If i were to make the house on the land my primary place of residence, what would be the go with CGT when the backyard sold, or would it be more of a benefit to myself to rent the house, i am unsure about the technicalities with the various taxes.
any help would be much appreciated
thanks
Pez, While I am not familia with NSW regulations,there are a couple of issues that I believe that you should look into.
What is the size of the land and if divided, will it have a large enough footprint to build a home on allowing for set backs?
For example an 809m2 block is typically 20m by 40m when cut in half you get two square blocks of 20m by 20m. Most councils want 6m from front and rear boundaries and 1.5m from side boundaries so in this situation you would have a building footprint of 17m by 8m. you may get 17 by 10 if you get a relaxation on rear boundary. Smaller blocks than 809m2 will be more difficult.
When you sell the block you will have to pay GST on the sale price. Do your math as it can be a good way to get a positive geared investment.
Jon
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