Subdivision buy one relative

Uncle wants to subdivide his corner block PPOR into four lots and build four Torrens title townhouses. The big one would be sold and the other three would be IP

Nephew wants to buy the big one as an IP himself.

Questions:
What's the best time to buy for nephew? After Town planning permit or build permit issued?

What's the best way to buy? land only or house land package?

Any finance accounting legal issues?

Thanks!!!

 

Many issues to be considered:

• Is nephew a FHB?
• Does he get any of the FHB grants/concessions? EG stamp duty
• Is buying OTP (from uncle) a viable proposition?
• Will Stamp Duty be higher on the completed H&L vs buying the land (possibly with a deed of partition or other agreement in place)
• Having secured the DA, then the nephew would have more certainty that the project is approved for construction

 

Funding and GST needs to be considered too.

Lots of other issues that they need to consider

 

Thanks Terry. Purely from tax point of view, Any ways to reduce GST and relevant tax?
If nephew is not a first home buyer, paid off PPOR

For example, nephew only buys land and build by himself

 

Yes, plenty of ways to reduce GST and CGT.

 

Can you please give a few examples? Thanks a lot!

 

Perhaps land could be sold first to reduce duty.
Transfer vacant land will attact GST possibly but could transfer before demolition.

many strategies to consider

 

Thanks, but what about if uncle has already got TPP approval and is awaiting building permit now? So the subdivision hasn't happened yet, how can the uncle transfer the land?

 

Contract of sale with a deed of partition or off the plan sale