I am in negotiations for a good property that is owned by an investment group. I am in a multiple offer situation and we are at a stalemate with neither buyers advancing their price.
My idea was this. I am looking at this property for a lease option. Therefore it will be bought under a trading trust and under the Lundy rules I would pay GST on depreciation. If I agree to buy the house with chattels at their depreciated value (no doubt the Vendors have been claiming depreciation) then they would have less clawback and I would have less GST to pay on depreciation even though I can claim it back when sold. As eventually the house is going to a home buyer and not another investor it doesn't affect my overall situation. But it does add extra value to the Vendor and could bring the property my way.
Any thoughts?
My idea was this. I am looking at this property for a lease option. Therefore it will be bought under a trading trust and under the Lundy rules I would pay GST on depreciation. If I agree to buy the house with chattels at their depreciated value (no doubt the Vendors have been claiming depreciation) then they would have less clawback and I would have less GST to pay on depreciation even though I can claim it back when sold. As eventually the house is going to a home buyer and not another investor it doesn't affect my overall situation. But it does add extra value to the Vendor and could bring the property my way.
Any thoughts?
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