We are thinking about buying a block of land in a new estate with a 10% deposit then waiting the 12-15 months for it to be titled and then selling it before we have to finance it.
Can this be a profitable enterprise and what taxes if any would there have to be paid.
We are assuming the the block of land would increase in value for us to onsell. Any help please.!And what happens if the block of land doesn’t go up at all, or even goes down?
Investment strategies usually look good on paper when you assume the asset will definitely increase in a short period of time!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Yes it could be done, no easy, but possible
You would pay stamp duty and income tax (not CGT).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Seems to happen in Victoria a lot now days.
People buy huge blocks of land, subdivide them, title them and developers are practically knocking on their door on a daily basis to buy the divided land from them.
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