You desire to do a property development?
Do you need a Planning permit?
Do you buy the property in your name? in Joint names? in a company? through a Trust?
When you sell -What about GST? Capital gains?
What borrowing issues will you confront?
Need funds to purchase and/or develop the property?
When can I start the development?
You have seen the property to develop but what conditions do I put in the Contract to Purchase and how can I finance the purchase. Read the following article and a phone call to us will assist you with your decisions.
You cannot just advertise for investors!
The general rule in section 113 of the Corporations Act 2001 is that a proprietary company cannot raise funds from the general public.
A proprietary (or private) company can only raise equity finance by offering its shares to:
These classes of investor include:
If the margin scheme is to apply to the supply of real property under a contract of sale the parties must agree to that in writing prior to settlement.
If the parties intend that the margin scheme is to apply, consideration will also need to be given to eligibility (the margin scheme will not be available if full GST was paid when the vendor acquired the property.
SEE ALSO ARTICLE under heading PROPERTY TRANSACTIONS regarding double stamp duty and land development before the purchase contract has been settled.