Good evening all,
I believe the subject is familiar to you all, thats why I’m going to ask as a newbie if anyone could tell me the ramifications of such an idea?
Looking forward to seeing some enlightening responses[
]Check out the Renovation Kings for some reno advice. Like anything, if done right it can be great. Not sure about taking it on at this stage in the property cycle though.
Don’t forget you have to pay capital gains tax on the profit you made. Unfair really!!! What is it, 50 percent???
I think you make the most profit from ‘hot’ areas. i.e. the kinds that have auctions a la the tellie. Brissie, Sydney. Those kind of houses are usually a lot more expensive though.
Reno kings say spend a dollar to make 5. I think if you spent a day with them doing one of their seminars for a grand or whatever you would probably definitely make it back in what you saved following their tips if you went straight into a reno afterwards.I’ve done two renos, though not for cap gain so much (although that is the happy by-product!) as to be able to attract good tenants and charge market rates. (they were dumps.)
Hi guys,
Minimogul is right with the 50% CGT if you sell.
But if you can hold on to the property for over 12 months, you only pay CGT on half your profit. The rate of tax on half your profit depends on your personal tax rate.If you live in the property for the 12 months (There has been some debate over the actual time needed here), while you renovate and then you sell, I don’t think you have to pay CGT at all.
I beleive that’s how it goes, I’m sure someone will correct me if I’m wrong.
Keep smiling,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
We are starting to look around at houses to do up and sell and hopefully make money on them. I note you say not at this point in the property cycle. Why do you say that. From what I can find, Sydney has pretty much hit a peak, it really can’t keep going up the way it is. Up the coast from here and in QLD the prices are only starting to rise rapidly in the past six to twelve months. Anyone and everyone you talk to is moving up the coast or buying investments up the coast. I thought with a cycle like this it would be prime time to buy in these areas??? Any thoughts?
P.S. Only new to all this so any advice on the pitfalls of renovating would be much appreciated.
Do the Renovation Kings have a website?
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