i would take from this that if you are in the business of buying and selling investment properties (i.e., if that is your full-time job and primary means of deriving income) and you enter into the purchase of a property with the intention of making profit thru capital gains, then when you sell, and realise those capital gains, the gain made is treated as ordinary income because that IS your ordinary income. so no, no CGT, if your business is buying and selling houses for profit. but if it’s just something on the side, then yeah, you prob get hit up for CGT.
but i’m no lawyer or tax expert or anything. that’s just how i read the case you posted…
if you’re gonna invest in a gizmo to spray paint your walls, do you think an airless spray gun is best? or compressor with paint spraying attachment thingy (and other attament thingies for other jobs)? any recommended brands, any stories to tell?
cheers folks
i can’t wait til i start to make a motzah out of this property gig.
maybe then all the aunts, unlces, friends, etc who’ve given me those infuriating, patronising looks, like ‘yes, dear, but really, what do you think you be when you grow up?’ will take me seriously.
at first they didn’t believe i could save and buy a house
then they didn’t believe i could renovate it
then they didn’t believe that i had actually researched my area, or that i knew i could make capital gains in a relatively short time
now i have made about 90K in my first buy renovate sell (not a million, but not a bad start i reckon), and they don’t believe i can do it again.
they don’t believe i can build/develop
they don’t believe in anything except working for the man.
(nb, they thought i was being frivolous and dreamy when i started obsessing over real estate in croatia, france, argentina years ago. i didn’t have any money to buy it at the time, but the point is, they thought it was a stupid idea and it wasn’t!)
anyways, i know it’s really early days for me, but i can’t wait for the day that someone asks me at a party what i do for a living and i can say ‘i renovate and redevelop property, and i love it’ or something like that.
and another thing:
everyone needs an income, yeah? and everyone has the right to at least try and make their income doing somethign they love, yeah? well, i’m planning to make my money out of property cos i love it. i am obsessed with houses. i have been reading vogue living and the domain lift out since year 9. i love houses like some people love cars, or sports teams, or whatever. hopefully it will be a profitable business, but whatever profit i turn will be secondary to how much i love what i do. and i’m betting all you guys aren’t in this property gig just because it earns you dollars. so tell that to the people who think you’re just chasing the $$$.
yeah, i was going to live it it. I suppose i could look at gettiong an IP somewhere else until i can save the deposit for a place in the city. At least that way in the mean time i might make a little extra in capital gains? or it’ll make my income look higher (considering i’m still studying!) so i’ll look like i can service a bigger loan… i dunno – i just wanted my own cute little place that i could walk to work and uni from, you know? []
yeah, I would be borrowing over 80%. my bank has looked at what I have left to pay on my other mortage and offerred 192K total, including deposit bond for my next place. I figured I could just get a personal loan to top up things if the price was a bit over that. so if other lenders are going to need a chunky deposit it looks like i’m stuffed [] spose i’ll just wait til i can save some more dosh!
umm, and if you’re a mortage broker and can’t give me a name cos it’s not in your interest, can you still please let me know if you know of an appropriate a lender? taa
40 year mortage? fair enough if you’re gonna buy and then sell-on in a few years, but if you plan to keep your property for good it sounds pretty dodge. god, can you imagine how much interest you’d pay out on a 40 year mortage? it makes me shudder to think of it…