Forum Replies Created
From my understanding of CG tax which could be wrong,
2) You only pay CG tax on any increase in price since you’ve started renting it 4 years ago
1) You’ve already owned the land for more then 12 months, only it wasn’t subdivided.
To work out the tax due you’d need the value of the property 4 years ago plus development costs taken out of the combined current value of both front and rear properties and then apply the 50%discount. I’d confirm this with the tax office to make sure this is the case and also get written valuations on both properties.Cheers,
HarryHi Ken,
In today’s market I’m suspicious of any property that is positively gearead, there just has to be something wrong with it, like near a contaminated site, a 6 lane highway being built next to it, no chance of CG or worst, etc. [biggrin]
If initial capital is a problem have you looked at buying a vacant block and building a new house ? The building times have come down a lot in the past year, with the right builders you could have a new house up in just over half a year. Once built you could then sell your old property, buy another block, build and sell the old one,etc,etc. all free of CG tax. Provided you do your homework when buying the land, don’t overcapitalize on the house and don’t mind moving around a bit it is a good way to get you started in the property market and build up your capital.
With work on the Perth-Bunbury Highway starting in December there are still a few new areas with good CG potential yet to be opened south of Safety Bay. My favorite pick is South Yunderup, the suburb is on a dead end street with direct access to the highway and industrial areas north of it, near the river, Peel Inlet and close enough to shopping in Mandurah. Also worth looking at are Ravenswood and Furnissdale.
Cheers,
HarryHi fayeh00, I like the South Yunderup area myself. With the freeway exit just 3-4 km from the canal properties I think this is one area that will stand to gain most from the freeway exposure. The fact that only a few empty blocks are still available and properties on the other side of the inlet are selling for 50% more or higher won’t hurt either.
Regards,
Harry
