Hello,
We are looking at selling our property. It has increased in value but I would like to know the breakdown of costs to see the true profit we will receive. I have never been involved in the selling process, only buying. Is there a general rule of thumb percentage what you should get back based on sale price?
Assume the following:
Loan $300,000
$100,000 fixed, $200,000 variable.Sale price $400,000
These are some fees that I am aware of . Please fine tune or add as required.
Bank fees (CBA) (per loan)
Admin fee $50
Deferred Est $700
Reg of discharge of mortgage $110
Settlement $350
ERA $5000 (for fixed only depending on market rate and amount)Settlement fees
Settlement $980
Disbursement $45
Agent fees $???Real estate agent
Advertising $2000
Commission $12000 (based on 3%)Tax???
That's all I can think of. Please let me know fees and prices applicable if I've missed.
Thanks!
legal fees on the sale. approx $1k
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Is Capital Gains Tax a consideration in this equation?
all those fees makes you want to invest in shares doesn't it!!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
No cap gains tax.
Terry, yes!
Are my figures right and have I missed anything?
What would tax be?
I think your figures seem about right. Advertising may not be that much. If it is your main residence then probably no tax at all, if an investment, then maybe CGT (if it has risen) and maybe land tax. Best to allow a few thousand for unforeseen extras too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
2000 for marketing???? That is a hell of a lot sign cost $250 internet advertising cost 250 make thats 1500 for print media, may want to check this with your agent mate.
Hi Vucko, I work in real estate. The fees that you post are about right, it depends where you are selling and what the local rate is. If it is closer to the city, say Melbourne, the fees are down to around 1 to 1.5% but in rural areas it is around 3%. it should be negotiable. The advertising depends on what the local papers are charging, we can only charge the going rate and not add on- at least in Victoria. You can go to the "sell my house" web site and do it your self. Statistics say selling yourself- vendors usually sell for 17% less than by an agent. That is $17000 on $100000 property, the agents fees only being $3000. It is diffcult to find an agent. I am happy to give you feedback on what your agent is saying if you choose to go this way. I am about helping investors – not the agents! emall me [email protected] cheers
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