Hello everybody, I am a complete newbie and also claim to know nothing about investment properties or tax. Thus the reason I am here to ask you kind people some advise. We live in Asia and more than likely will be for some time to come, maybe another 10 years. We have a house in Brisbane that we bought in 2003 for $290,000 and it is now worth $450,000 or around there. We are considering selling it due to ongoing Maintenance problems, realestate problems ect. It is currently rented out at $320 per week. My question is- as non-residents what sort of capital gains tax do we have to pay when we sell?? Are we just better off to keep onto it instead of putting the money in a mangaged fund?? Very confused. Thankyou in advance for any helpful replies.
advise needed on capital gains tax
- Thread starter expat
- Start date
I know nothing about the tax question, but due to the fact that Brisbane market is rising right now, why not wait before selling and you may make a bigger gain.
If it was me, I would hold it, but only you know your own feelings and circumstances. Does it have real ongoing maintenance problems, or is it something that can be fixed properly so that it becomes more a "set and forget" rental?
Where is the house?
If it was me, I would hold it, but only you know your own feelings and circumstances. Does it have real ongoing maintenance problems, or is it something that can be fixed properly so that it becomes more a "set and forget" rental?
Where is the house?
Wylie, thank you so much for your reply. The house is in Greenbank in the Spring Mountain estate on 1 acre. Yes it maybe that we should bite the bullet and spend a bit more on the house and get things done once and for all, it just seems that it is a high maintanence house, there are pumps for different things which forever seem to be breaking down, getting replaced at $1000.00 a pump and annual checks from the council, we have had an ongoing drainage problem in one of the bathrooms and are always paying for a plumber, than we have had termite problems, so it just seems sometimes not worth it when we always have these bills coming in. Thank you again.
You will have to pay CGT when you sell but you are entitled to the 50% discount for holding the property for longer than one year. Have a good read of this booklet, that contains some good examples. Did you buy it as an investment or as your own home? If it was your PPoR, you may be able to use the 6 year rule & not pay CGT. Have a read of the ATO website.
I agree with wylie that it may be better to spend some money on it now. This may allow you to increase the rent? What is the market rent like for the area? It may be an idea to get another managing agent if you are not happy? A managed fund could be good, although the share market is a bit volatile currently. This would also involve some risk.
Steve
Similar threads
