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:
    1,290
    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. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    10,693
    Location:
    Southern Highlands NSW
    Or going into a restuarant and asking them 'what should i eat'!
     
  3. 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