Mandy has been purchasing sections for the last ten years. During this time they have only rented the house that they live in. The first section she purchased was with a view to building her dream home there one day. However, after two years she had a child and decided that she would rather have her family live in a suburb closer to one of the local schools that she also attended as a child. She sold that section for $125,000 more than what she purchased it for. The second section she purchased was purchased in her partners name. He found a lifestyle section on the outskirts of town. After 3 years they sold this section because they thought it would be too big to maintain. The second section was sold for $150,000 more than the purchase price. The third section was purchased by their family trust. This section is in a new subdivision. But now they have an offer on that section which is $250,000 more than what they brought it for. They are concerned that the school zones have changed and they no longer would be able to send their children to the desired college when they are older. Advise Mandy and her partner on the sale of the two sections and potential sale of the current section they own.

Answer rating: 100% (QA)

Advice to Mandy and her partner on sale of sections The sale of the first section denotes the profitgain from the sale of the house while the purchase ... View the full answer