How Property Investors Can Reduce Tax Down To Zero!
Kerry Packer once said, “If anybody in this country doesn’t minimise their tax, they want their heads read”. Coming from one of Australia’s most successful business moguls, that advice is hard to argue with – especially when it comes to property investment!
Those who own real estate are subject to many, different kinds of tax. Some tax is unavoidable. Other kinds of tax are legally, 100% avoidable – or at least able to be reduced substantially.
With the Victorian government recently announcing a rise in the land tax threshold it’s even more important that property investors know where they can and should minimise the tax they pay.
All states and territories have land tax on land other than your primary place of residence over a certain amount. These amounts differ from state to state with Victoria now leading the charge with the highest amount of land tax in the country.
The best way to avoid land tax as an investor is not to cross the threshold on how much land value you own. There are various ways to do this:
Buy smaller houses or apartments that have less land value
Buy in areas where the land is unlikely to increase in value
Buy properties across a number of states
Once again, the amount of stamp duty you pay will vary from state to state. Reducing the amount of stamp duty you pay can be done if you purchase:
A cheaper property
Land with a title to build, but no physical property on site
A brand new property
CAPITAL GAINS TAX
Every time you sell an asset that has appreciated in value, you pay capital gains tax (CGT). The best way to avoid this, and a leading mantra at Positive Real Estate is…“Buy well, never sell!”
You can avoid paying 100% CGT if you never sell your property.
There are also some other exemptions and reductions relating to the amount of CGT you pay if:
A property is your main place of residence
A property is a primary business residence
You own assets in your super
Talk to the experts at Positive Real Estate to find out if you’re eligible for any of these exemptions.
Owning four or five new properties will entitle you to enough reductions in your assessable income that you could decrease the amount of income tax you pay from 37.5% to just 5%.
This will depend on the quality of the properties so ensure you’re getting proper advice from people like the coaches and mentors at Positive Real Estate, who can help you select the right kinds of property for investment.
REDUCE YOUR TAX TODAY
How you navigate through your tax obligations as a property investor can have significant impact on your ability to create wealth.
Learn more at one of our free property investor seminars.
Here, you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.
Hey there, do you enjoy the Positive Real Estate Blog? If you did, why don’t you book into a Property Information Night in your area and get more information from our team. You can do so here.
Every smart property investor knows that to create and maintain a portfolio, we need to have good cash flow. One of the ways we can support this is by using depreciation and tax. But, just like equity, depreciation only works for us if we know how to access and then leverage it.
Sharen Carruthers had a goal to invest in real estate and be retired by 50. She achieved her life’s dream with two weeks to spare and then did as many retired people do. She travelled the world to all the places she wanted to. She gave her time to family and some business interests. And then … she got bored.
This exciting, inspiring and enlightening conversation with Sharen demonstrates that sometimes our goals and dreams are there to open up a new possibility of what’s next. It’s not always the achievement of a goal that is the magic. It’s the opportunity that the achievement. And Sharen shares all of that on this episode of Property Investor Tales. Enjoy!
What are fixed interest rates and what does it mean to us?
I am chuffed to be getting questions flooding the Urban Property Investor inbox! So today’s episode is all about answering your big burning questions! What do I think of the Sydney market? Where is the most in-demand real estate? What does the Green Economy mean for us all?
What even is cross security and what does it mean for us? Let’s talk through this and also dive into what Cross securitisation and Cross collateralisation means to us as property investors and whether it’s a good or bad thing to have. Let’s Wealth Coffee Chat!
Tavish and Jane have seven investment properties. Just that statement alone makes it sound unattainable for most people! But it’s not. When you listen to this episode and learn the struggle and discipline involved in prioritising real estate investing over other choices, you’ll see that with some forward-thinking and a clear strategy, anything is possible.
Once you’ve listened to this episode, I’d love it if you hit the subscribe button so you get notified every time a new episode drops.
Why do you think that housing construction numbers are at a new high and builders are going broke? How do you think this will affect us as property investors? Come join us as we answer these questions and figure out what is going on. Let’s Wealth Coffee Chat!
What even are the 4 main financial stages that people go through in life? The 4 financial stages most people go through in life which is why most will NEVER have a financially free lifestyle ever and what to do about it! Let’s Wealth Coffee Chat!
Media headlines can be quite interesting sometimes. So why can’t young couples buy a home? Is it because of the bigger loans needed or smaller deposits? When do you think this news headline came about? Let’s Wealth Coffee Chat!
Have you ever even heard of the 2 engines of wealth? Neither had Jason until professional investor managing over a Billion dollars explained it to him. For many, we think investing should be exciting when in fact it should be the opposite. Let’s Wealth Coffee Chat!
The post How Property Investors Can Reduce Tax Down To Zero! appeared first on Positive Real Estate.