Join Australia's most dynamic and respected property investment community

Best structure for subdivison/renovation strategy?

Discussion in 'Accounting & Tax' started by albanga, 10th Sep, 2015.

  1. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,106
    Location:
    Melbourne
    Hey Experts,
    As per topic I'm curious if there is an ideal structure for this type of strategy in regards to tax minimization.

    As some of you know I am just completing one now but this was done on PPOR so a bit different.

    The next one I plan on doing will be buy a property and rent out immediately. I would then spend the next say 1 year subdividing. Once completed I would then renovate the existing home and sell both the home and vacant land seperately.

    If successful likely rinse and repeat a few times over in the next few years.
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,370
    Location:
    Sydney
    That's like walking into a pharmacy and asking for the pill that fixes everything.

    Things that should be considered will include how its financed, can you split incomes, who else is in the family, what their incomes are, who is a risk, etc....Its very dangerous to apply a photocopier to any strategy.
     
    neK likes this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,973
    Location:
    Sydney
    Or going into a restuarant and asking them 'what should i eat'!
     
  4. montoya

    montoya Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    58
    Location:
    Sydney
    Some general rules that apply pretty muxh for all I would think would be to hold for >12 months for all Reno & Flips for 50% CGT discount (unless claiming as PPOR whilst renoing and avoid CGT altogether) and time your sales for different financial years (pre June/ post July) if it means you'll be in a lower tax bracket by doing so.

    - two cents from a newbie