Hello Everyone
My name is Daniel. As you can see this is my first ever post on this awesome website. I bought the book 0-130 properties in 3.5 years
i have almost finished it and its awesome. It has really opened my eyes into the world of real estate.From the knowledge i have gathered so far i believe for me the best options in this market would be either flips or renos. I do not have a huge income. Less then 40k a year, I am however working on that and I am trying to push it up to at least 65k. To get into this market I would like to go for capital gains. this would give me the money i need for deposits on other houses. I hope to have a few houses positively geared so that i can retire before im 30. Im 24 now and i am currently living in Deception Bay (north Brisbane).
As the saying goes the hardest part is starting. I was wondering if anyone can explain to me about the workings of capital gains tax. How is it calculated and how can you avioid it or minimise it? I have looked into it online but its confusing me. I know its a tax you pay on capital gain. derr
What i dont know is if you can hold the house or land for certain periods of time and avoid it or reduce it, i have read as well that you can be elligable for the 50% CGT discount… thingy.I apologise for the long post and appreciate any help given.
Cheers,
Brinky
Hi Brinky
Welcome to the forum.
Firstly, all the best with your investing journey – starting out young is the way to go.
You can avoid CGT by never selling! CGT is also not applicable on a principle place of residency (something to consider when purchasing your first property).
The most simplistic explanation of CGT is that it’s the tax payable on the profit you’ve made from the property. If you hold the property for longer than a year you receive a 50% discount on the CGT payable.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
i have almost finished it and its awesome. It has really opened my eyes into the world of real estate.
What i dont know is if you can hold the house or land for certain periods of time and avoid it or reduce it, i have read as well that you can be elligable for the 50% CGT discount… thingy.
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