All Topics / Help Needed! / capital gains

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  • Profile photo of pplaterpplater
    Member
    @pplater
    Join Date: 2003
    Post Count: 10
    November 8, 2004 - 9:18 am

    I’ve just finished steve’s new book can someone tell about capital gains,
    I buy a property worth 280k spend 20k renovating sell it for 340k . what happens with capital gains?

    thanks

    Profile photo of Brisbane 04Brisbane 04
    Participant
    @brisbane-04
    Join Date: 2004
    Post Count: 215
    November 8, 2004 - 2:06 pm

    Hi,
    If you buy a property for $280k you will need to pay stamp duty on that property of approx $15000 this is a very rough guess as it also depends on which state and even which country you invest in. On top of this theres solicitor fees of approx $1500. Then you do 20k of renovation bringing the total cost up to 316k. Then you have to take into account selling fees of approx 13k for the agent and $1000 for the solicitor. So up to here your $280k house has cost you roughly 340k to sell. I havent calculated how long it will take you to sell the property and settlement time., but lets say it takes 7 weeks to sell and the vendors want a 60 day settlement. If the house is vacant you are making repayments roughly of approx $420 pw over 15 weeks adding up to $6300. So after looking at all these details I dont think you need to worry about capital gains. This is just a scenerio and a very rough glance. Your circumstances may be a lot different so I have just looked at one particular scenerio.Good luck[biggrin]

    Martin

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