- Presume the sale of a new house to be subject to GST unless established otherwise.
- Always think GST when buying or selling.
- This article covers just one aspect of the new regime.
Charlie and Chloe are old clients – and now they’re back. Some years ago they bought their dream home with a large block of land. They couldn’t afford to live in it and had to rent it out until they could.
Eventually they did move in, but later decided to subdivide their large block and build the real dream home next door. They had some savings to do this but also had to borrow some extra. Before the subdivision was complete, Charlie and Chloe’s dream changed again when they found and bought another house to be the dream home. So they decided to sell the old house and borrow a bit more money to build a new house on the subdivided lot, which they would then sell.