Forum Replies Created
Thanks Weston for those words of wisdom , we were also considering the aspect of the refinancing as well though with the extra costs with the additional money to repay was weighing us down . And in reply to the reason for the sale , is because we are looking to purchase our third property .[
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hi inverstordoing some figures it looks like you would have CG of say 80k after costs. As mortgage hunter said if you don’t own the property for more that 12 months you pay CGT on the full amount. if you are on a high salary you would pay nearly half that in Tax.[xx(]
if you wait, even if you are in the highest tax bracket you will still pay 25% Tax[] So if you wait 6 months you could save up to $20,000.
Investor your experience highlights how important it is to consider what stuctures we use to invest in. If for example you have it in a trust you can distribute the CG to whoever is paying the lowest tax that year. Sorry it doesn’t help you now but it will help others.
Another dilema for you is. Do you rent it out for only 6 months then the property is no longer brand new looking (as i assume it is now after your reno)[?]
if you choise to rent it out then another consideration is what will the price be in ten yrs, going on history it could be double the price. Why do you want to sell? is it because you are worried the market will drop? or is it because you want the money for more investments. if the latter is the case then why not refinance, you get you hands on some of the profits and pay no tax.
Sorry i’ve probably raised more question for you.it a difficult decision but hey well done[
] you just made heaps of $$$ reasonably easily[]regards westan
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Must of been a really small room ( 3 x 3 ) and very, very cheap fixture for the kitchen and ensuite to do all that building work for around 15k. ?????
Actually the kitchen alone measures 6 x 5 the reason it has cost so cheap is because Being in the industry I am able to purchase materials very cheap and able to write them off to my business .
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] So if you wait 6 months you could save up to $20,000.
] you just made heaps of $$$ reasonably easily[
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