Need help: 2 Families buying a single block to build duplex for PPoR

As the title states, the idea is that my family and another family want to combine our finances to buy a (large) single block of land and then build a duplex so that each family has their own house. We'll also need financing on both sides.

The end result we'd like is to be as legally and financially separated as possible, as if we had just bought one side of the duplex each, if that makes sense. If possible, we'd like to end up with separate loans and separate torrens titles to each side of the duplex, with just one family as the "legal owner" to their respective side.

Obviously, we'd like to minimise or avoid any sort of CGT, and would prefer to have the final ownership structure as just joint tenants, between the husband and wife of either family.

Would any gurus out there be kind enough to list out the steps that we'd need to take for this to happen? We're based in Sydney, if that makes any difference.

Thanks in advance!

 

See a solicitor and want you want to do is to partititon the land upfront so each of you owns your share of half as bare trustee for the other. The result is that you each beneficially own your share of the property. Later when title is transferred it can be done without stamp duty, CGT or GST.

Finance should be joint - will have to be. But you can split the loan and potentially have half the loan in your name with them as guarantors and half in their name with you as guarantors. Once subdividision is done you refinance and remove them as guarantors and substitute security for your loan to your block.

Consider death before completion too

And consider leaving the lower income earning spouses off title so they can stay off the loan to reduce risk. Later you can sell half to your spouse without duty or CGT potentially.

 

Often helps to use the same lender at least until completion.

 

If the security for the loan is the land for the duplex there would be no choice until subdivision is done - which is usually, but not always, after construction is complete.

 

@Terry_w thank you so much for your responses. Would you happen to know any solicitors that would be able to assist us in this space? Direct experience in helping to set something up similar to what I described would be a big bonus!

 

you could try www.petergell.com.au