Hi,
It maybe a dump question but I just would like to confirm this:
Do you have to pay land tax if your investment property is unit/apartment instead of house/villa/townhouse?
The reason I thought unit/apartment investment property is exempt from land tax because unit owner does not really own the piece of land but space.
Please correct me if I am wrong.
Thanks,
Reginald
Yes it would apply. because each unit owner owns part of the land.
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
Hi Terry,
So how does unit owner know how much land value they own?
For example, it is 40 units in one block. And the property value is 300K (purchase price).
What is the land value for this unit?
Thanks,
Reginald
hi Reginald
I don't own units myself, but would think you may have a value on your rates notice or will receive a land tax assessment notice. Remember it is only on the land value and if there are 40 units, then each value will be very small. You may also get the land tax free threshold in some states.
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
Land tax is run by the state governments. So it all depends on where you property is located. For example in the NT they pay 0 land tax on any purchase. In QLD like many states i think its only if your combined land value exceeds 750k you pay land tax.
If you only own one unit then most likly you will pay 0 land tax, unless its on the sydney harbour or something
Terry is correct. Check your rates notice.
I was actually surprised with one of mine. It's a small unit worth $280K. Land value is $100K. Small block but I was VERY surprised.Hi Reginald,
in NSW, there is land tax payable on units if the land you own across all your properties in NSW exceeds a certain value. The tax payable per unit is calculated based on the land the block is on and depends on many factors. For example, I know of a case where two blocks were located in the Estern Suburbs of Sydney. One block had 7 units, the other block 31 units. The land tax payable on the unit in the 31 unit block was higher than the other one!
The only way to find out what exactly the land tax payable is, is to call the Office of the Valuer General with the lot number of your unit. You can find more information on this here http://www.lands.nsw.gov.au/valuation.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
