Land Tax if Buying Neighbour at PPOR

Hi,

I’m curious if I was to purchase my next door neighbour’s house to merge the properties into one PPOR am I liable for land tax or can the combined properties be treated as our PPOR?

Is it necessary to merge the titles or can they be kept as separate titles? Would we need to demolish one of the existing houses?

Thanks

 

It depends where the land is. If NSW it could potentially be exempt if used as your PPOR, both could. The act talks about parcels of land not titles so this could be the case even if separate titles.

 

Thanks Terry, appreciate the reply and yes I’m in NSW.

The two houses would genuinely be used as a combined PPOR but the land tax would kill our affordable to buy hence the questions.

 

Where the property is located is what matters.

 

@ZJV - you think you've got problems?

Linky - this brings the holding to 7500m² - they're limited to 2000m² curtilage before land tax would apply on rural land (not sure if the same could apply on suburban residential land).

 

I wish that was my neighbour’s place.