i was reading this. got bit confused.
garg – It's been a long time since I was involved in the building/marketing of SPEC homes, however………….a SPEC home is when a Builder,Developer or Property investor/company puchase residential land & build a new home or homes on it (usually & hopefuly when the R/E market is hot & there is a big demand from buyers)
For profit reasons they want to turn it over as quickly as possible (sell it) mainly to minimise bank holding/funding costs,many times they will comence marketing or even SELL it of the plan BEFORE construction has even commenced (aiming for a quick sale) because a quick sale means a bigger profit.
End result when SOLD the purchaser gets a new home the builder/Developer get paid & makes a profit so………they can go and repeat the excercise over & over again until all the buyers go home & the market suffers a downturn is flat & it usually comes to a halt for a year or so until the buyer demand is there again.
I hope this explanation helps a little & if you think you still need more specifics on "SPEC HOMES" let me know & I will see what I can do for you.
Spec home – house built for speculative purpose ie develop & quick sale.
Thanks
When i searched for spec home in google yesterday. i found this.
http://home.qandas.com/real-estate/what-is-a-spec-home.htmlI got impression that spec home is pre designed (designs provided by builders) home.
If it is main residence it will not be exempt from CGT.i guess if it is main residence. it does not matter it is pre designed or custom designed.
thanks
It does not matter who builds the house (the article refers to a developer and that is what the person who builds speculatively is). If they do this for a living, then they pay tax on the profit, if you do it as a one off, then you may be paying CGT. If you are doing it to live in as your ppor, there is generally no cgt.
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