Given the scarcity of land in Sydney we are increasingly seeing neighbours form into groups for the purpose of selling to developers via a single transaction. We’ve seen examples of this all over Sydney including St Leonards, Castle Hill, the Inner West even the Sutherland Shire.
It’s a difficult process to manage, but if successful it can create a once in a lifetime windfall for the property owners, completely transforming their financial situation.
Getting your financial house in order
An event of this magnitude requires a thorough and professional review of your affairs. Everyone’s situation is different, but some of the key considerations for sellers include:
- The next property: Where do you move next and how much do you spend on that property
- Investing the proceeds: How to intelligently invest the sale proceeds
- Family assistance: How to provide financial assistance to your family whilst also protecting that capital from a relationship break down
- Cash flow: Managing your cash flow between entering the sale agreement and settlement
- Tax: Is there a better way to structure your affairs going forward to reduce the tax you pay
- Superannuation: What role can superannuation play to improve your position
- Estate planning: Could your estate planning arrangements be better structured to reduce taxes paid by your beneficiaries and provide them with a degree of asset protection
Don’t make the mistake of waiting until you receive the sale proceeds before developing a clear plan. There may be opportunities you can take advantage of now with the right planning and advice.
This once off windfall provides you with an opportunity to secure your family’s future – Make it count.
This information is general advice and does not take into account any person’s objectives, financial situation or needs. Consider whether the advice is right for you before making a decision