[PureBliss]

We are considering selling our investment property, and as a first timer I am a bit green.

I will talk to my accountant naturally, but wanted some quick answers first.

Basically I want to know all of the expenses we will be up for as a result of selling, eg.
Agents fees (been quoted 2.2% inc GST, does that sound reasonable?)
Advertising (been quoted $330 for package that is supposedly worth $1600)
Captial Gains Tax
????

Do you have to pay for conveyancing like when you purchase a property? (assume not, just checking)

Will there be bank fees for paying out the mortgage on the property?

Will there be other tax implications (eg. my income tax for next year?)

Finally, thecurrent tenant has made us an offer (bit low, but not far off the market), so should we even be considering selling privately? Arggh the decisions!


Thanks in advance

[rob6712col]

To sell you will have the following fees:
- Real estate agent fees
- Advertising fees for the agent
- capital gains tax payable for the following financial year (so check what that tax will be from your accountant and make sure you put that money away from the sale as it is not payable for up to 12 months later)
- solicitor fees do apply to attend the settlement on your behalf
- loan discharge fees will apply. Depending what type of loan you have will depend what the fee will be (hoping you don't have a fixed rate loan)
- government fees to discharge the mortgage on the property

If the current tenant wants to buy it then you can save the real estate agents costs and advertising costs so you can sell it a bit cheaper and still come out with the same amount of money. For example, if you sell for $400,000 with a real estate agent their fee would be approx $11,000 plus any advertising. If you sell it to the tennant you could sell it for $389,000 and still have the same amount in your pocket after the sale. Also this gives you a quick sale.

[lilybet]

Also if the property is eligible for land tax, and it is still owned by you on 31st December this year, you will have to pay the lot for the following year. You can sometimes negotiate this with the buyer.

[PrincessPeach]

To roughly estimate the capital gain you need to include in your tax reutnrs is the following:

Sale price - purchase price - any agets fees/legal fees & anything not claimed as a deduction previously.

If the property has been owned for longer than 12 months, 50% of that amount is included as your capital gain.