Build Strata - Profit?

Hi guys,

Quick question, we are building a unit at the back of our home with the intention of moving in after completion. We then want to sell the unit and the front home which will turn into a rental property.

If we take out a 230K loan for construction and we sell the unit a year later for 400K, what kind of profit are we looking at considering CGT isn't involved??

 

Sorry, to clarify, what is being sold, or rented, or being lived in?

 

So we are living in the front, going to build at the back, moving into the back, renting the front and then selling both

 

You should sell the front unit prior to moving into the back house. Live in the back house for 12 months, then sell that.

I think if it is done this way there would be no CGT?

 

I don't think that even triggers a GST event, does it?

 

Great question and one I have never seen a clear answer on. @Terry_w or @Paul@PFI may know the answer.