Hi everyone! Newbie to property investing and hoping to learn from the gurus here.

Hi all,

Very excited to join this forum. I am based in Melbourne and have recently made my first investment in property. I am a newbie in property investment and other related aspects like taxation etc. so hoping to learn from you all good folks hear.

I recently made a 5% deposit on a residential land in Melbourne West. The titling is expected in Feb 2022. The price of the land is $306,000 and I made the deposit in June 2021.

Similar sized land in adjacent estates is now selling in the range of $340,000 to $350,000. Also, a Carlisle home on a similar sized land in the same estate was recently sold for $680,000. So now I am thinking should I sell the land (no restrictions from the estate) or build a house and then sell it. What are the tax implications in the two scenarios? Any other considerations I should keep in mind.

Thanks in advance,
Sammy

 

From experience, I wouldn't be surprised if titles are delayed/pushed back. May work out well anyway, if rising market continues. Have you got finance sorted?

Other people here can probably give better advice re: tax implications. Or have a chat to your accountant.

Regarding whether to sell or build, I guess comes down to your goals. What are you looking to achieve?

 

Does your contract allow you to sell your land prior to it getting titled?

 

Thanks for your reply danz. Honestly just looking to make a good profit on my investment. No specific needs or goals where I need to take out the money at a certain time etc.

 

Thanks momentum26. Yes the contract allows me to sell the land prior to getting titled. I guess, if I do that I will save on stamp duty also.

 

Can depend on how your purchase contract is worded. Get specific advice on this.