WA Perth Development Sites

Discussion in 'Where to Buy' started by BLAIR_, 18th Jun, 2015.

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  1. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I was in Manning on the weekend and thought it was a great spot to look at - anything you build will be so much nicer than that one in the link ;) No beige wonderland for you!
     
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  2. Perthguy

    Perthguy Well-Known Member

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    4cm does not seem like a very big concession. I can't imagine WAPC would be too keen to got to SAT over 4cm.

    Me too! :) Great location and good deal.

    How are you organising this? I was going to do this on my last project. I was thinking of a Deed of Partition and bare trust structure but from seeing it on the internet to purchase was less than 48 hours, so I didn't get a chance to organise.
     
  3. theperthurbanist

    theperthurbanist Well-Known Member

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    Out of interest @Westminster, when looking at a split frontage project like this, which block would you place a higher value on/prefer to own, the one adjacent the POS or adjacent the neighbouring lot?
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I think it would come down to your stage in your life. If your kids were teenagers you'd place no value on the park and would probably be annoyed by the sounds of kids playing there at 8am on the weekend interrupting your sleep in :p
    Preference wise, I prefer the park side block as then you only have one neighbour.
    In terms of value I think they are the same but it comes down to personal preference - one person may say "don't like the park as someone could easily jump my fence and steal stuff", another would say "omg love the park for my kids"
     
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  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I'm going to preface this by saying I'm a KISS person and I don't like to over complicate things. I would use a deed of partition if the split was uneven but with a 50;50 split on a very short term project I didn't feel the need to. I'm sure my lawyer and accountant will have kittens.
     
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  6. Blacky

    Blacky Well-Known Member

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    You'll be in trouble if WA go the same direction as the ES and ban the sale of puppies and kittens at pet shops...
    At your rate I'm pretty sure these two are pumping out a litter or two every couple of months
     
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  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Or they'll have an aneurysm from the amount of eye rolling I cause.
    But seriously I'm not advocating what I do and in fact I mostly warn people off any sort of split deals or JVs - I don't listen to myself very well - I seem to have a frequency voice tone that is easily ignored in my house :p
     
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  8. Perthguy

    Perthguy Well-Known Member

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    I don't know how it all works but I have the impression when the lots are created, you own 50% of each lot. To get them into single ownership is treated as a sale. Depending on what stage you do this at, there will possibly be CGT, stamp duty and GST. It's not ideal but you have heaps of fat in your deal. I have got myself in the same situation as you but with less fat! :p Still, there are options, so not the end of the world. I promise to try harder next time :D
     
  9. sanj

    sanj Well-Known Member Premium Member

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    If youre going to sell both then i guess that will be fine but if the plan is to get 1 each and makw your own decisions from there you will probably be creating a cgt event by having a block each, assuming there is a gain. technically yoi would each own half of each block so would be selling half a block ea h
     
  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    In my KISS brain (which is not a lawyers brain :oops: and why people shouldn't listen to me or think I know what I'm doing) the 2 blocks will have no gain as it will be 90 days after settlement.
     
  11. Perthguy

    Perthguy Well-Known Member

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    If GST is applicable but you are eligible for the margin scheme, it could be nothing or minimal. Not sure about stamp duty. I think you should get out of it ok. Wish mine was that easy :oops:
     
  12. Blacky

    Blacky Well-Known Member

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    Which is the issue.

    I know that there is a way you can legitimately do this and have it basically a 'non-event'. But doing it wrong may result is stamp duty payable, Gst payable, chat payable or some combination of the above.

    Im not certain though.
     
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  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    You are totally right and I have an appt to talk to accountant about it to ensure we do it the right way - just haven't got there yet.
     
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  14. JohnPropChat

    JohnPropChat Well-Known Member

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    If two people start with one big block and 50:50 legal and beneficial ownership then splitting the land into two blocks and each taking one will not result in huge stamp duty, just nominal figure as the beneficial ownership hasn't changed if both blocks of land are valued the same. At least that is what the lady at the land office told told me when I asked a while ago.
     
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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    This is pretty much what I knew/thought it to be too.
    I have spoken to my lawyer and she is fine about the way we are doing it and doesn't see any huge issues. Yes we could have done it differently but it is fine.
    Basically the deed of partition will be done when the blocks are created (ie conditional approval from WAPC) and both cleared - ie when they are worth the same amount. As they will be worth the same amount there will be no stamp duty when we transfer it into 100% ownership of each block.
     
  16. Daniel Taborsky

    Daniel Taborsky Well-Known Member

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    Yep - just nominal duty where the value of two blocks are equal. DUTIES ACT 2008 - SECT 39

    You should also consider CGT consequences as the partition is a CGT event (or income tax if you are holding the land on revenue account). The timing of entering into the partition deed can have an impact on the CGT consequences.
     
  17. Perthguy

    Perthguy Well-Known Member

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    Great news! :)

    And thanks for the additional info @JohnPropChat and @Daniel Taborsky
     
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  18. moridog

    moridog Well-Known Member

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    If you each built on them would that change the implications as discussed above or once they are split you are free to do anything you want with them as they will be green titled and separate assets?
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yes it would change things most likely unless we built the exact same thing as they wouldn't value the same and we don't want to run into CGT so we need it to be done before the value increases via construction. Once the place is demolished and we have the approval for green title from WAPC it is the right time to split the asset.
     
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  20. JohnPropChat

    JohnPropChat Well-Known Member

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    What do you know, it now has a price. Not a bad proposition if one can demo the house and build on it. Being built in the 20's I suspect it comes with some retention guidelines?