Hey All,
Just starting out and trying to get the simple stuff straight in my head.
1. When buying, renovating and then selling straight away, is the idea to just cop the extra capital gains that come with selling within 12 months of purchasing?
2. Also, do you sell the house unfurnished or furnished? I have always been under the impression that an unfurnished house is harder to sell, but as the property is purchased purely to add value and then sell, furnishings aren't in place.
thanks
mrs palmer,
it depends what your trying to do and how many you are gonna be doing. If your treating it like a business and doing multiple, i wouldn't worry about the capital gains.
And your right, it's easier to sell with furniture. Maybe try and hire it or get the place staged. Goggle 'staged homes' to see what they do.
All the best
John
hi Mrs Palmer
If you buy and sell properties you are going to have to pay taxes, whether it be income tax or CGT – assuming you are making a profit. A good way to reduce your tax bill is to use a discretionary trust structure. Have a look into these.
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,
According to my property-investing accountant, the time limitation for CGT is only 3 months. If it is your primary place of residence, and you sell AFTER three months, you are not liable for CGT.
It is listed on the ATO web site.
Cheers
Mark
Hi Mrs Palmer,
I'm not sure if the November issue of Australian Property Investor magazine has hit the news stands yet but your question and others is answered by Julia Hartman (BAN TACS Accountants Pty Ltd) on page 64 in an article titled "Building or Renovating for Profit".
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