Firstly I would like to say a big thankyou to Steve and all the crew for an excellent weekend seminar.
Has anyone thoughts on how the GST would affect new properties that you built and then wrapped.
You could claim back the GST imput credits during the construction phase but the GST on the sale price is only realised over the period of the wrap loan (25 years).
Would this be applied in the same way as capital gains tax?
Anyone done this or thoughts on this type of transaction.
Happy Investing
Stephen
Hello Stephen,
Thanks for your feedback.
I believe that GST would be payable on new homes built and wrapped… but it would only be payable once when you acquire it from the builder.
There would not be any GST when you wrap it.
One possible outcome that could be explored is getting the end buyer to pay the GST that would otherwise have been payable if s/he had purchased directly… I don’t know how to word / construct this outcome though.
I don’t think that you would not be able to claim back the GST, since it relates to a private residential dwelling.
BUT – I’m no GST expert and I doubt anyone could give you a definitive answer.
Bye
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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