- FireflyParticipant@kizJoin Date: 2004Post Count: 30
We have found our dream property which isn’t on the market but the owner is potentially looking to sell. It’s a large 10+ Ha block with two lots and two titles which will be sold in one line. To be able to afford to do, what we want to do, we’ll have to sell the smaller lot and do a simultaneous settlement. We’re talking $2.5m – $3m purchase price in QLD and the % rate of stamp duty goes up substantially as prices rise.
So… any creative ways to secure both lots but only pay stamp duty on the one we’re going to keep? We’d look to sell the smaller block for around $750k and by not having that in the purchase price, it reduces stamp duty by up to $50,000 big ones!!! We’re thinking that maybe an option might work, IF, the vendor is open to it. He’s still not set on selling as he is trying to get the land rezoned, so our offer needs to be strong and very firm.
I also checked with my legal team, and apparently, even if the lots are on separate titles, they will add the purchase prices together for the higher %. By separating them we’d save about $20k but QLD doesn’t allow you to do that :O
Looking for any creative ways to save ourselves the additional stamp duty for the lot we don’t actually plan on keeping!!! Thank you in advance :)Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763
I wish I had better news, but the stamp duty laws are pretty tight, and I understand options to purchase are caught in many instances.
I suggest engaging the services of a good property development lawyer to guide you through what might be able to be done, just in case your current legal team haven’t thought of something.
It might just be what it is I am afraid, and if the SD kills the deal, then it won’t be the first time that tax has ruined a good idea.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
Success comes from doing things differentlyFireflyParticipant@kizJoin Date: 2004Post Count: 30
Thank you for taking the time to write a reply :) I actually thought as much, but wanted to throw it out there just in case someone had a ‘creative’ work around!
It still stacks up for us even with having to pay full weight on SD due to what we plan on doing with it… but it would be nice if we could keep that extra $20k – $50k in our pockets of course. We still need to convince the owner to sell it to us prior to him trying to have it rezoned, that’s the hardest part! He’s owned it since the 80s and has already relocated interstate so there’s still a chance ;)
Keira & Keith