What's wrong with this plan..

[theducks]

1) Buy house on 760m2 of land for $370k.

2) Subdivide land for additional $20k in fees.

3) Sell back battleaxe for $200k.

4) Sell front with remaining original house for $350k.

5) $160k profit

Aside from tax implications on the profit, what am I missing here?

Comments

[dr-jekyl.livejournal.com]

That sounds awefully like what we're doing, only the block is a bit over 1400m2, we're getting it for $250,000 and subdividing at least three times.

The capital gaing thing is what you've got to look out for, as I understand it. It ahs the potential to wipe out your profit. That's what we're investigating at the moment, and why we may be waiting a year before doing anything.