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.
LAND TAX
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
STAMP DUTY
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.
INCOME TAX
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.
Recent Articles
10 Ways To Save For A House Deposit [For Investors Or First Timers]
Saving for a house deposit to get onto the property investment ladder is tough. Especially with the cost of living drastically going up. After bills, rent/mortgage, groceries, petrol, insurance… there isn’t a whole lot left for saving. But that doesn’t mean it’s impossible! By adopting these 10 ways to save for a house deposit you’ll be ten steps closer to building out your portfolio and creating future wealth.
Learn Property Investment In 2022 – Where To Start!
With a commitment to learn property investment and all its ins and outs you’ll be able to grow a booming property portfolio, enjoy passive income streams and eventually create financial security for retirement. Here’s a list of how you can get started…
5 Questions To Ask Before Investing In A House
Some may stumble across a business opportunity, or perhaps investing in shares, but our go-to vehicle is real estate. Real estate is a long game that has the potential to provide generational legacy wealth, if done correctly. To set yourself apart from the 99% of investors who fail, you need to ask these 5 questions before investing in a house.
How To Protect Your Real Estate Assets For Long-Lasting Wealth
Protecting your real estate assets is perhaps more important than building them. Obviously we always hope for the best, but there are many things that can go wrong and when they do, you and your assets are at risk. Incorporating prevention measures into your investment strategy could be the difference between you continuing to build out your wealth or losing everything you own.
How Investors Can Use Equity Lock To Grow Their Portfolio
How to make money from subdividing land largely depends on how you choose to do it. One thing for sure though is that when done right, it can catapult your portfolio significantly in a very short time!
How To Make Money From Subdividing Land?
As an investor, there are many different strategies that you can employ to generate wealth, and a strategy that is great for instant equity gains is subdivision. But, while it sounds like an exciting project to take on, how do you actually make money from subdividing land?
The Money Management Skills You Need For Real Estate In 2022
Real estate is the perfect asset structure for wealth building, but it has to be done right – and that means having solid money management skills to back you as you make these major financial decisions. Some of these skills may seem obvious – like having a budget – but you’d be surprised how many young investors didn’t get to build this foundation of knowledge through their school or home life.
10 Property Investment Tax Mistakes To Avoid
Tax isn’t often one of those conversations that give investors the warm fuzzies, especially when we’re talking about the 10 property investment tax mistakes to avoid! But it’s important that property investors reframe their thoughts around tax. Owning real estate can actually be incredibly tax effective – in fact some might say tax is a secret weapon for property investing.
How Lenders Assess Valuation Risk Factors When Financing
Ever thought you’d picked an absolute winner of a property only for the bank to come back with a list of valuation risk factors? It’s more common than you think, particularly in a rising market where values fluctuate so much that our ideas of what a property is worth actually start to disconnect from what a valuer sees.