Selling Off The Plan apartment before it is fully built ?

Discussion in 'The Buying & Selling Process' started by AlbertWT, 30th Nov, 2015.

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  1. AlbertWT

    AlbertWT Well-Known Member

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    Folks,

    Reading about the recent news about off the plan apartment or any other property type woe, I wonder if for some reason the buyer tries to sell it before it is fully completed ?

    Is that possible scenario to sell it to another buyer ?
     
    AlbertWT, 30th Nov, 2015
    #1
  2. RM1827

    RM1827 Well-Known Member

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    Yes it is possible but you will lose FHB concessions
     
    RM1827, 30th Nov, 2015
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  3. AlbertWT

    AlbertWT Well-Known Member

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    Yes, that's the possibility.
    But knowing & assuming that with OTP price will be appreciated after the property is built up, does it also attracts capital gain tax as well ?
     
    AlbertWT, 30th Nov, 2015
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  4. RM1827

    RM1827 Well-Known Member

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    My understandings is that If you are selling an OTP apartment before is built you still need to settle. Your settlement and your buyer settlement will occur at the same time (when building is ready) if you had a capital gain from that sell then you will pay CGT
     
    RM1827, 1st Dec, 2015
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  5. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Depends if the contract allows it. Generally it won't, unless the vendor consents. The purchaser can, however, nominate someone else to be the ultimate owner, but the purchaser is still on the hook legally for the contract to be completed.
     
    KateAshmor, 1st Dec, 2015
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  6. melbournian

    melbournian Well-Known Member

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    list it as "purchaser and/or nominees" - lots of ppl did this for the glen waverely apts. Got a friend developing in hawthorn apartments and he accepts those.
     
    melbournian, 1st Dec, 2015
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  7. House

    House Well-Known Member

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    This is something that I'm considering of doing with my QLD OTP and hoping I can as my deposit would be put to better used elsewhere for the next 2.5 years.

    I'd sell it for what I'm contracted for (under my own name) so guess I wouldn't be liable for CGT. But would I have to pay Stamp Duty too or is it paid by the new buyer upon settlement?

    I haven't checked yet but in the contract there's probably a provision about the buyer being/not being allowed to on-sell before settlement. If it says I'm not allowed to do so, could I just ask the developer and hope they're happy to help?
     
    Last edited: 1st Dec, 2015
    House, 1st Dec, 2015
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  8. AlbertWT

    AlbertWT Well-Known Member

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    @RM1827 but what if the price is actually lower than it was built ?

    Do I get some tax break or even worst the bank will ask for more money before settlement to cover the gap ?
     
    AlbertWT, 1st Dec, 2015
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  9. melbournian

    melbournian Well-Known Member

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    why would anyone want to transfer it across if it is lower priced unless there was some personal circumstances change
     
    melbournian, 1st Dec, 2015
    #9