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

[theducks.livejournal.com]

Hmm yeah, if you have to hold onto it for a year, and predictions on Perth's property market issues are to be seriously considered, then perhaps it's not such a great idea.

(Standard disclaimer: I'm not a tax professional; this comment is my own opinion, seek professional advice, etc.) - Of course :)

[dilettantiquity.livejournal.com]

I wouldn't write it off entirely - sure, the tax on any gains will be doubled if you hold it for less than a year, but if it's lucrative enough in the short term you could still be looking at a decent profit.