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  1. #1

    Default 2 Properties,2 Contracts to create 5 properties. Best way to buy?

    We have offers on 2 Properties that are right next to each other.There are two contracts and the possibility of creating 5 sites. If our intention is to keep one of them, and we have 1 buy and hold company and 2 Gst registered trading companies, which is the best way to go to save on the $$ donations? Greatful for any help!!!

  2. #2
    Join Date
    Feb 2004
    Location
    Welly-town
    Posts
    1,095

    Default

    Please clarify the question. What are you trying to achieve?

  3. #3

    Default

    Hi,
    I believed that the tax implications are more benificial if you held on to one property if you had created two or more. We thought that if we held onto one of the five we could achieve this benifit. If what we think is correct, how do we achieve it if there are two separate properties? ie Would we have to on sell both the contracts at the same purchase price to create one contract? Would we have to change the title to encompass the whole of both the existing properties, as at the moment, the best place for the driveway for access for all 5,is straght up the centre boundry?
    I think what i need to know is do we need to have 1 property to then create 5 to achieve our aim? And if so is it even possible?
    I hope I have not confussed the matter even more!
    Thanks

  4. #4
    Join Date
    Apr 2005
    Posts
    2,701

    Default

    So are you thinking or joining the two properties into one big chunk of land... then breaking that big chunk up into five separate chunks?

    I think the whole process ie amalgamation and subdivision is done in one go.

    But the approval is done in two steps…general approval of concept…then once you get all the drains etc drawn up…final approval.

    I also think that the reserve donation to the council is made only on value of the three extra houses.
    And most likely you will be asked to replace the drains even though they are working fine.
    Last edited by McDuck; 30-01-2006 at 07:52 PM.

  5. #5

    Default

    So if we did it all together in one hit and structured it so that we kept one piece, how would we be taxed?


 

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