Going into a Development Project with Neighbor (using our PPOR)

I know there will be a lot to factor here but in a nutshell my neighbor and myself had seen a good opportunity for us to combine our the land where out PPOR sit and develop the plot into probably 6 townhouses.

I am just trying to ascertain how best to go about this as we are currently holding titles under different owners - does it make sense to get this re-registered with me and neighbor as joint owners (presumably in a company or trust)? If this is the case, there will be a need to re register the land and pay stamp duties again?

We will be seeing an accountant definitely but we also wanted to make sure that we have done some research on what are the possible options.

Thanks!

 

You should be seeking legal advice and tax advice and credit. You both could potentially sell to one or more entities which you jointly or separately control. This way you get the main residence exemption and get the development profits in a tax effective entity. But the finer details will depend on a lot of things.

 

Some preliminary reading on developer tax issues would assist later discussions. Finance for 6 t/houses may or may not be easy to get over the line (think Commercial finance IF its required...Many lenders look at the qty and the resi leding team will flick it to Commercial) and the credit advice alongside the legal will be important.

 

I would go for more townhouses than 6, maybe 5 on each block??

 

thanks for this Paul