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Landbanking

Discussion in 'Accounting, Tax & Legal' started by Jacque, 17th Jan, 2006.

  1. Jacque

    Jacque Team InvestEd

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    Picture four freestanding houses in a row, purchased over a period of roughly 8 yrs at differing times. Landbanking for the good times :)

    If one was considering doing this over a period of time, but bought the individual properties in different entities, what would the ramifications be when it came time to put a DA on all four blocks for building purposes?
    Would each "owner" (individual, trust etc) need to sell to one of the entities and be up for stamp duty?
     
  2. Tom&Don

    Tom&Don Active Member

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    If you are CONSIDERING doing it .... If you use a blind (or bare?? i cant remember) trust for each one, then you could purchase each house without anyone knowing who the true (beneficial) owner is.

    Otherwise if you have ALREADY done it, dunno in the exact scenario you mention.



    T.
     
  3. NickM

    NickM Co-founder Staff Member

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    Jacque
    you should be able to do it as a JV arrangement

    ie each owner would own 25% of the development.

    if you were to construct say 8 dwellings then before registration of the strata you could do a deed of partition. This would enable you to separate the ownership so that each owner would own 2 dwellings each rather than 25% of each one.
    providing the value of each one on completion was similar the stamp duty would be minimal.
    this would give you maximum flexibility, particularly if you have different owners or wish to sell some and keep others.

    Nickm
     
  4. Jacque

    Jacque Team InvestEd

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    Thanks for that, Nick.
    So it sounds as though it makes little impact if they are in different entities.