Even though I have been buying and selling investment properties for clients for many years, I have never sold any of my own until June 2013.
I heard from a Greek client years ago: “ We buy investment properties but we don’t sell them” and I thought that was a good thing and why sell if I didn’t need to?
Iv’e been thinking of buying a larger investment and thought that if I could sell one of the older investments to free up some capital I wouldn’t be putting a rope in my neck…. too tight.
So I made the decision and I sold one. I put the property on the market, doubting my abilities to sell not until July and I was surprised to receive 4 offers on the first week home open. So I had to sell before the end of the financial year.
I was under the impression I had to pay capital gains around October this year only to find out that I have until June 2014 to pay. Obviously I have all this time to make the ATO money to work for me. A winner! Hehehe!
Other little things I came to learn in practice not from just what I’ve heard is that I was taxed on the percentage of my income for that year on half of the capital gains. But I also had so many expenses to be deducted from the 13 years I have owned it that in the end I ended up paying 25% of my gains.
I thought that was a fantastic result!
That says to me what I always knew: the best way to make money (slowly, not overnight) is with bricks and mortar.