I returning to Oz after living abroad for a while. I’ve just sold two properties I held in Melbourne. One I owned outright and generated an 80% CG return in 5 years, the other I only owned for 11months but the tenant was troublesome, plus the fact I think I paid too much for it, made me sell. That returned a 10% CG in 11 Months.
I’m now cash heavy and want to start investing a bit more wisely. While the first 2 turned profits, it was pure luck more than anything else.
A couple of questions:
1) Does anyone know of a good Property/Trust accountant in Sydney’s Lower North Shore area ?
2) Does CGT invoke immediately on sale or do I have some time to buy another investment property and pump the gain into it ?
3) I’m content to do some research first and see what’s happening with the market while the cash returns 4.5%. Do you think it’s wise ? I am tossing between finding +ve and a couple of -ve geared properties to offset my tax burden, or sitting until the market corrects. Thoughts ?
I do feel that I should have retained the first property and collected the rent for eternity, but a little voice in my head kept yelling “sell”.
We’ll see whether that was the right move or not soon enough.
I don’t own my own home at the moment so an other option would be to take the cash and buy one outright. But for the same reason I think waiting is the right thing, I am inclined to rent for a while.
So all in all I’m at a crossroads with many avenues open to me. If someone is in a similar position, or has been, any advice would be great.
1) Can’t help with this one.
2) The CGT event occurred when you sold the properties and crystallised the profit. It is at this time when you have incurred the tax liability.
3) Yes, I agree do some research to make yourself more comfortable. If you are investing for the long term then timing is of less importance. Remember any change in the market creates opportunities (doesn’t matter if its moving up or down). Plus there may be sectors in the property market that may offer better opportunities than others. Just keep an open mind and I’m sure opportunities will present themselves.
Re: selling Melbourne properties – does matter now… they are sold! Just look to the future. Make sure you have a plan. Set objectives, etc. As it is often said… “He who aims at nothing almost certainly achieves it with unremarkable accuracy”…
Most of all – use this forum. It’s a great resource.
I wish you the best of luck.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auJust a note on 2. You probably wouldn’t have to pay the CGT until you lodge your tax return. It might be an idea to delay it as long as possible (until Feb?) and keep the money in your account earning interest.
And is it possible to claim one of these properties as your PPOR? Did you live in either at any stage?
For an accountant in Sydney try Bruce Whitting. http://www.mintgroup.com.au (I think)
Terryw
[email protected]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,
I sold them after July 1st so the tax will hit me next year. Hopefully by then I get make the money work a bit.
Unfortunately I haven’t lived in the properties. I had plans of returning to Melbourne but Sydney is my new destination, that’s another reason why I sold them up.
Thanks for the mintgroup url.
if Parramatta aint too far away try John Fowells and Co, excellent with tax minimisation…
96871966. I used to pay 20k tax a year(elec.contractor) and accountants bill was 4-5k. Now pay 80%less tax and 25% the fees…
Also some in house finance arrangements I think.
(no affiliation, just happy customer…)
Gd luck.
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