Purchasing an investment property is a great way to ensure that you’re getting the most bang for your buck. You can work on the property to ensure that you can get the highest possible return from tenants and to make the most of the capital gains tax.
But what about when it comes time to sell your investment property? You might be interested in buying something and somewhere else or you may decide to turn that cash into an investment in stocks, shares or bonds.
Here’s what you need to know about selling your investment property the right way to make the most of your hard work.
Learn About Capital Gains Tax
Capital Gains Tax operates by treating your net capital gains as taxable income in the year that your asset is sold. If your asset is held for at least one year (that is, if you’ve owned the property for at least a twelve month cycle), your gain is discounted by 50% if you’re an individual taxpayer or 33.3% for superannuation funds.
These taxes can be tricky to figure out (and even trickier to explain). Your best bet here is to seek professional financial advice to determine your financial position before moving forward with any selling action. If you’re selling your investment property, chances are that you have access to wise, professional advisors who can point you in the best direction so you are able to better understand this process.
Here’s a great tool from the Australian Taxation Office that can help you begin the process.
Cleaning, Styling and Prepping for Sale
Property stylists know how to turn your investment property from drab to fab. There’s a lot of evidence to suggest that engaging the services of a property stylist will guarantee you a higher return come auction or sale day. Many places even sell prior to auction, meaning less time on the market and less funds that you have to pay to real estate agencies.
Styling your home for sale is a great way to connect with your potential market to ensure that the right people see the right property at the right time. It’s a vital part of the selling process and ideal when it comes to selling your investment property quickly and efficiently. It removes a lot of the drama and the ‘what if’ when it comes to the stressful act of selling property. Melanie Grace, Grace & Co. Property Styling.
Your property should be cleaned thoroughly, in good condition and have any obvious issues addressed before you put it on the market. Painting, repair work and some styling that will make buyers fall in love with your property are great ways to ensure that your investment property doesn’t waste time (and money) sitting idle on the market.
Do Your Research
What are other homes in your area selling for? When’s the best time to sell? What kind of market may be interested in purchasing your property? You need answers and you need them now to make sure you’re putting your best foot forward when it comes to selling your investment property.
On The House is a fantastic tool that uses CoreLogic Data to provide you with an accurate picture of what the market really looks like. Doing your research early on in the piece will help set you up with realistic expectations of what your sale might look like. Access as much research and data as possible to help you make the right decisions. Ensure that you’re talking to people and agencies that are objective – you don’t want to just be paying someone to give you the answers they think that you want to hear. Accessing accurate, logical and straight-forward data will put you in a position where you can make the best possible decision.
How to Sell Your Investment Property
Knuckle down and do the hard work and research first before casting your net to involve third parties. After all, this is your investment – give it the respect and pride it deserves. It represents your hard work and the return you receive should reflect just that.