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Build Strata - Profit?

Discussion in 'Development' started by Martinez22, 8th Sep, 2016.

  1. Martinez22

    Martinez22 Well-Known Member

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    21st Jun, 2015
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    Perth
    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??
     
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    Sorry, to clarify, what is being sold, or rented, or being lived in?
     
    Colin Rice likes this.
  3. Martinez22

    Martinez22 Well-Known Member

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    Location:
    Perth
    So we are living in the front, going to build at the back, moving into the back, renting the front and then selling both
     
  4. boeman

    boeman Well-Known Member

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    Perth
    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?
     
  5. Aaron Sice

    Aaron Sice Well-Known Member

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

    Perthguy Well-Known Member

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