Leasing out land for construction ?

Discussion in 'Development' started by FXD, 20th Apr, 2019.

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  1. FXD

    FXD Well-Known Member

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    Hi experts,

    Is it possible to lease out bock of land to related entity (eg: family trust) for construction of new
    dwellings by the said entity?

    What are the pros & cons, tac & legal considerations and how to best structure such set up?

    Thanks,
    FXD
     
    FXD, 20th Apr, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes it is possible
     
    Terry_w, 20th Apr, 2019
    #2
  3. Archaon

    Archaon Well-Known Member

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    What would be the benefit apart from not having to pay stamp duty upon transferring the ownership to the trust?
     
    Archaon, 20th Apr, 2019
    #3
  4. chindonly

    chindonly Well-Known Member

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    @Beano is the expert in land only leases, more in the commercial space.

    I have been a party to some through work.
     
    chindonly, 21st Apr, 2019
    #4
  5. Stoffo

    Stoffo Well-Known Member

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    Why not sell the land to the entity ?
     
    Stoffo, 21st Apr, 2019
    #5
  6. FXD

    FXD Well-Known Member

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    Don’t want to trigger extra costs in stamp duty & capital gain tax.

    Thanks
    FXD
     
    Last edited: 22nd Apr, 2019
    FXD, 22nd Apr, 2019
    #6