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  • Profile photo of PaulliePaullie
    Member
    @paullie
    Join Date: 2009
    Post Count: 217

    Hi everyone.

    I've never sold a property before and I know very little about the actual costs/taxes when selling an IP.

    I'm runing the numbers on selling my IP, which I purchased last Cecember for 352k.

    Its cost me about 5k since Ive had it. Rental is currently $320pw, no strata fees.

    What Id like to achieve is a sale price that allows me to make a very modest return, maybe 3-5%, obviously the more the better.

    5% is about 17k.

    Agent fees around 10k (guessing).

    Recoup the 5k in costs.

    So selling for 385k would do this for me.

    Now Id need to pay capital gains on the profit, which would only be 23k.

    Is this correct?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    Paullie wrote:

    Now Id need to pay capital gains on the profit, which would only be 23k.

    Is this correct?

    Hard to say.

    The CGT calculation will be dependent on your taxable income during the period, date the asset was purchased and sold, etc.

    Here's a calculator that might help http://www.yourmortgage.com.au/calculators/capital_gains_tax/

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    You should also take into account the total purchase cost.  This is the purchase cost of the property plus stamp duty, solicitors fees, other legal costs, etc.

    DAMProperty | DAM Accounting Services
    https://www.damaccountingservices.com.au

    Profile photo of PaulliePaullie
    Member
    @paullie
    Join Date: 2009
    Post Count: 217
    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470

    Where is the property located if you don't mind me asking? I would be interested to know which markets have seen 5-10% capital gains since December.

    Cheers,
    Luke

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