Land Acquisition Costs
Understanding Acquisition Costs
Acquisition costs include legal fees, stamp duties, and other taxes associated with purchasing property. These costs are often different depending on your region. 00:00
Legal Fees
These are costs paid to a lawyer, solicitor, or conveyancer to handle the property purchase, including dealing with banks and other authorities involved. 34
Stamp Duties and Ad Valorem Tax
These are taxes levied on the property purchase, usually a percentage of the sale value. For example, in Victoria, Australia, this is 5.5%. 64
Accounting for Acquisition Costs
When entering acquisition costs, ensure to include all relevant expenses such as conveyancer fees, legal setup costs, and any applicable taxes. 126
Inputting Costs into Feasibility Tool
The video demonstrates how to input these costs into the feasibility tool, highlighting the importance of correctly entering percentages and values to reflect accurate acquisition costs. 191
GST and Margin Scheme
The video explains how to handle GST for commercial properties and when the margin scheme is applicable. It emphasises the need to check these settings for accurate cost calculations. 285