Neighbour Wanting to Purchase part of our land!!!

Discussion in 'Development' started by MissJo, 22nd Feb, 2022.

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  1. MissJo

    MissJo New Member

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    Hi there,
    Last week we were approached by our neighbour who would like us to consider selling part of our property 16 sqm to be precise as they plan on subdividing the property into two lots. This is something we would be willing to consider as it equates to only 850mm of the back off our property. They have sent through a proposal for us to look at which includes the price they are offering for the land including covering all cost going off the value now. My question is figure wise what should we be asking for given that we will be loosing land size and value and they will be gaining.
     
  2. Joynz

    Joynz Well-Known Member

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    Will selling the land prevent your block being sub-divided in future?
     
    wylie likes this.
  3. Terry_w

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

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    factor in the CGT too
     
  4. MissJo

    MissJo New Member

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    How do I work out what this would be?
     
  5. MissJo

    MissJo New Member

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    I am not sure, who would I ask to find out?
     
  6. Terry_w

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

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    you should seek tax advice about working out the cost base of the property - generally original purchase price and costs, and then apportioning it based on the % of the land sold and deducting this from the sale proceeds.

    The main residence exemption for CGT can't apply
     
    bmc likes this.
  7. bmc

    bmc Well-Known Member

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    might also be prudent to contact a real estate Valuer
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    That would be a town planner to determine the minimum subdivisible block size.

    Also be aware that council may not accept consolidation of sites to achieve the minimum site area.
     
    Tufan Chakir likes this.