selling a investment house in WA - budgetary % figure for all selling costs?

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avranjes
Participant
@avranjes
Join Date: 2003
Post Count: 58
January 25, 2012 - 3:48 am
Hello,
Its been a while since I've been involved in selling a investment property in WA.
I used to think a good budgetary % figure for selling a investment property was 5% – i.e. if i budget on 5% of the sell price for all costs – bank, government, settlement etc I should be ok.
Can anyone comment on this?
Does anyone have a selling checklist of costs to look at?
Thanks,
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 25, 2012 - 6:24 am
What about CGT?
Agents commissions would be around 2%
lawyers about $1500
discharge mortgage etc $500
But CGT could be bigger depending on your situation.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
avranjes
Participant
@avranjes
Join Date: 2003
Post Count: 58
January 25, 2012 - 8:56 am
thanks Terry, its my girlfriends mums house.
She can deal with CGT at Tax time (i believe this is correct?) I budgeted her net profit already so CGT wont be a surprise.
sell price is 660k – so I will advise her to budget on 2% + 2k for lawyers and 750 for discharge etc – all budgetary of course.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 25, 2012 - 11:39 am
Dont forget to deduct any Capital Allowances she has claimed on the property from the Cost Base as you would be suprised how many people dont realise this.
May not be a great deal depending on how long she has owned the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender