I have a friend of mine whose parents own a property on a corner block and want to help them get into their first home. They are considering building another house on the lot and then subdividing. My friend has sufficient income to get her own construction loan without assistance from her parents. Is there a way for the kids to take ownership of the new house during the subdivision process? Will they incur stamp duty?
Thanks Terry. Is stamp duty payable on the value of the new house and land or what they spent to build?
If the parents sell them the land only, the duty will be payable on the land. But if they are building they may have FHB concessions?
It would be on the value of the property being transferred so the house and land, not just construction amount.
Isn't it dependent upon what is being transferred? SD will be lowest when it is raw land & higher once built upon. Why would you want to pay more than just for the raw land (like a house & land package).
That was my thought too - wouldn't they subdivide, transfer the land to the kid and then the kid builds?
The construction would be under dual occ rules where the subdivision of land cannot occur til after construction.
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