Would like some more information on the problems that investors are having in Australia.
I have been told that you get 2 lots of stamp duty tax and also get capital gains tax. If this is correct, can someone tell me why this has happened?Cheers.
Ask our politicians, maybe they can answer….and then let me know!!!!
AW:
You pay stamp duty on the purchase of a property, regardless if it is for investment or owner occupation.
Stamp duty is a State tax and hence, the amount varies from state to state in Australia, depending on their individual rates.
There are some concessions and exemptions on stamp duty for first home buyers up to certain purchase amounts.
Capital gains tax is only payable upon the sale of a property other than the family home (which is exempt)
If the property is held for 12 months before being sold then the CGT is calculated on 50% of the gain.
Otherwise selling within 12 months will incur CGT on the total amount of the gain.
CGT is calculated using your marginal tax rates, therefore will vary from individual to individual.
I believe in NSW the state govt. will levy an additional stamp duty on the equity increase on a property when it is sold. This comes into effect on 1st July 2004.I think this is correct…hope it helps…
KP
Hi
Well when it comes to the government you might as well drop em and say screw me.
Thats all they seems to know how to do.
cheers
alfThe application of taxes and/or duties between the different levels of government are very rarely co-ordinated. Different political climates, state economies and budgetary considerations, tend to override the logical approach of a strategy to minimise the distortions that taxes have on the economy.
Word is that the NSW Libs will have as their re-election bid to withdraw the exit tax….Not sure how this will now go, given the $300m deficit the Carr government has just reported (first deficit in a decade)
James
As the media is not reliable, (why would you ever ask the REI for a market opinion, it’s like asking a Holden dealer on how good is the new Holden impartial ????) and the papers print whatever will sell the most papers, this is actually one of the best resources going around.
Having said that my last three pieces of info are,
1) A broker I deal with said he had 11 finance deals he worked on in June, and 9 were debt consolodation with only 2 being purchases.2)Had an open house (yes we have ours on the market but my wife keeps raising our price ….. so I think she’s telling me she wants to keep it …) and the agent said they had 1 person drop in to 5 open houses on the weekend … was great weather though (??) Oh yeah location is Glenhaven, and its acreage, and if anyone meets our price I retire !! (hmmmmm there could be something there )
3)A printer I deal with had a very bad month in June, one of the reasons is that one of his big spenders in recent years RE agents have cut back enormously and are telling him tales of woe and sufferring (please !!!!!)
This is in Sydney and each city is different, but Sydney and Melb lead. Will be a interesting spring.
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