Private Joint Venture PPOR structure

Discussion in 'Development' started by HDM, 17th Feb, 2020.

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  1. HDM

    HDM New Member

    Joined:
    17th Feb, 2020
    Posts:
    3
    Location:
    Melbourne
    Hi all, long first :) I am hoping to get some insights / experience for anyone who has structured or completed a private joint venture.

    I am based in Melbourne, VIC and know another couple who own a block of land (currently their PPOR) in the inner east. The proposal is I pay for the development/build of a duplex + cash payment to the land owner, with each party owning subdivided land and 1 duplex at the end of the process to be their PPOR. Financially this works for us (Estimate total cost is around 1.1m, we have 20% deposit, with the final property value being approx. 1.4m) and I will be speaking to a lawyer/accountant but hoping to also hear some real world experience, thanks!
     
    lixas4 likes this.
  2. Hamish Blair

    Hamish Blair Well-Known Member

    Joined:
    29th Sep, 2015
    Posts:
    442
    Location:
    Melbourne
    Stamp duty, CGT, GST etc. If they knock down their house its no longer a residence, so no more PPOR!