DEVIL IS IN THE DETAIL
Q We bought our current home, Property A, in 2009 for $531,000. The online experts estimate it is worth $1.15 million. The house is old but we have a sea view and it is close to town, so the land value could be up to $900,000. We wish to take the house off the site and relocate it onto a section within half-an-hour’s drive of the city. This will become Property B and we would move in once it is liveable. We would then develop Property B over the next year while undertaking a subdivision of our now vacant Property A land into two lots. The aim is to maintain our position while building one house, selling it and using the funds to build another house on the other lot, which we would move into during retirement. Property B would also be sold and the profits used to build the first house. I assume that we pay tax on the profit on Property B, although we will be living in it for about a year. One reason for doing this is to get some money back from the old house because it’s better than demolition and house
