Advise -First time buying for development

Hello,
My brother and I are thinking to buy a old house/land anywhere in the lower north shore (Sydney). Then we would like to build two 3 bedrooms townhouses or apartments so each of us can live there with the family
I am new in this topic so I would like to know the basics when looking for a property/ land to buy(example zoning, minimum land size, minimum requirements, strict/hard councils, etc)
I would really appreciate if you could give me some advice.
Thank you!

 

The issues with loans and land titles etc all will impact this. eg If it is a single title you cant each get loans and be protected from the other not making repayments etc.

If you build a duplex then the intentions seem clear that the build is a PPOR issue and land tax and CGT concessions will possible benefit (although I think Clause 9 of the new land tax ruling says you cant get exemption from land tax while you build a duplex). The problem will be how to get two titles - ie a subdivide ? That comes with costs.

If you build more on the land than for the two of you (ie 3 x TH) then a issue of concern can also occur where it seems you are mixing "home"and profit-making. That can harm your CGT exemption too.

If I was you I would find a great broker who can sort out the main issues and define it a little so you have a idea on structuring your plans and the finance first. Terry would be the guy IMO.

 

Many many many things.

If you want to have a project build 3 townhouses and those 3 townhouses go to 3 different adult members you could do a "deed of partitioning". This will allow the three owners to buy their portion of the end product at the start. So at the end, when each person takes their own product they are only taking their entitlement to that townhouse which is what they already had.

A really basic example:

The beginning

1 John buys the front 10m.
2 Sally buys the middle 10m.
3 Tony buys the back 10m

At the end

1 John takes his first 10m he always had.
2 Sally takes the next 10m she always had.
3 Tony takes the last 10m he always had.

If you do not have a partitioning deed the owners will acquire 33% of all of the townhouses. When you split the assets into three each adult member will sell 33% of two townhouses and acquire 66% of the townhouse they want to acquire. That is messy.

The beginning

John, Sally and Tony own everything equally.

At the end

1. John buys Sally's share of the first 10m and Tony's share of the first 10m TAX EVENT
2. Sally buys John's share of the next 10m and Tony's share of the next 10m TAX EVENT
3. Tony buys Sally's share of the back 10m and John's share of the back 10m. TAX EVENT

I am not familiar with NSW stamp duty and the like but I am sure somebody else on the forum will help.

Get your modelling done right, get the structure correct. Big opportunity to save money for new projects.

No idea about planning stuff.