All Topics / Finance / If I Sell…?

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  • Profile photo of SonjaSonja
    Member
    @sonja
    Join Date: 2004
    Post Count: 338
    June 13, 2004 - 6:46 am

    We are considering selling our one and only IP and using the money to finance the purchase of PPoR (we are currently renting) plus a new IP. Would anyone be able to give me a rough estimate of how much we would be left with after CGT, legal fees, agents commission, etc?

    We bought the house for 83k in Feb 2000 and it has always been an IP. About a month ago a 2B/R house in the next street sold for 170k. Apart from the fact that our house is 3 B/R, the two are similar age, condition and land size.

    If we make the assumption that our IP will sell for 175k, how much will be left after the associated costs? We have never sold a property before and have not got even a rough idea what it costs to sell.

    Cheers
    Sonja

    PS We can’t just use the equity as our income does not meet serviceablilty requirements for finance on all three properties. The reason that we want to trade our IP in for a new one is that the currrent one is not CF+ and the new one will be.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    June 13, 2004 - 7:39 am

    Hi Sonya,

    I recommend you download the ATOs CGT booklet http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm
    as they have a CGT worksheet.

    You’ll be able to enter the exact figures as they relate to your situation and come up with a definitive answer. I hope you kept all of the invoices and receipts from the property from tiem of purchase as these will be required to help you minimise any CGT liability.

    Have you considered reviewing your existing IP to see if there are ways that it can be made CF+ – this will, if it is feasible, save you considerable $ in selling costs and taxes.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 13, 2004 - 2:25 pm

    Sonja

    Did you live in this IP at any time? If so, you may be exempt from CGT altogether. agents fees are around 2 – 2.5% and legal etc should be under $1000.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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