| Quote: | |  | |
| There are capital gains taxes for non-residents too. | |
| | |
Marie
You will pay capital gains tax on 50% of the appreciated value of the property when you sell but only
IF YOU SELL
If you keep a property for the income it provides then you'll be fine.
Most people never invest in property, they may buy a place to live in but they stop at that. We investors are a minority and there is a reason for this. I agree with you that investing in property is not easy. Borrowing and holding a property is not easy and if it wasn't for the fact that I use borrowed money and gear it giving me infinite returns, or the tax benefits and the 50% discount of the capital gains it probably wouldn't be worth it.
| Quote: | | | |
| Looking at houses to buy we would have been up for at least $A70k in stamp duty  | |
| | |
To pay that much stamp duty you'll need to buy properties worth $1.5Million.
A portfolio worth this much could provide for a comfortable retirement. A more common property (worth $400K) will only have $13K stamp duty.
I always buy 1 property at a time and Stamp duty doesn't worry me because its paid from the loan.
I use equity from the first property to borrow the down payment for the 2nd property. This way I don't use my own money and I borrow the full amount including stamp duty.
cheers