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I've currently got a unit in western sydney..
my question is, do you sell now & take advantage of the situation OR is there still a way to go yet ?
Some differ in opinion and like to "take profits"
But trying to pick the top is impossible. You are either picking before the top or after the top, and if it's after the top then it's not a sellers market anymore.
My personal opinion is never sell unless it's a lemon.
The average boom year increase is more than the average bust year decrease, and when you sell you give away part of your profits to the REA, and the taxman.
You are also flushing down the drain that $30k stamp duty you've paid if you sell, as you have to pay it again when you replace the property later.
In short - you have to be damn sharp to capture that 5-10% decrease in price during a downturn as a profit.
I've currently got a unit in western sydney..
my question is, do you sell now & take advantage of the situation OR is there still a way to go yet ?
I've currently got a unit in western sydney..
my question is, do you sell now & take advantage of the situation OR is there still a way to go yet ?
When selling down your portfolio, how do you determine the sequence?
For instance, I've got 4 units in Sydney purchased from 2009 onwards. Do I start with selling the unit I've held the longest? They're all roughly the same LVR as I pulled out equity to purchase interstate and also into the sharemarket.
The first thing to determine, is "Is selling right for your purposes?" If the answer is 'yes', then I would look at all the units and determine if you want to sell one, two, three, or all of them.
If you're wanting to get rid of two, then you might look at spreading the sales over two financial years, so one now, and one in spring. Again presuming that you are wanting to sell soon.
The property itself is a massive dog but luckily in a high demand low supply suburb.
Hi, newbie question, what are the advantages of splitting the sales into two separate financial years?
Hi, newbie question, what are the advantages of splitting the sales into two separate financial years?
To keep below a certain tax bracket.
Imagine the following scenario:
Salary: 80k
IP1: 65k profit
IP2: 65k profit
If you only sold IP1 you'd be below the 150k bracket and pay 30% tax instead of 40% if you sold both (I'm making up the numbers here, I forgot what the thresholds / rates are).
So investors will stagger the sales out.
CGT is calculated on your regular PAYG rates. So splitting sales over 2 FY's may save bumping you into paying a high rate of marginal tax when the CG from property/s is added to your income in any particular year.
Ahem, that is NOT the definition of a dog property.