Buying and selling property within 2 years (future serviceability)

Hi all,

My sister and I found an undervalued property that we're interested in to invest. I also have my own goal of getting an IP myself in 1-2 years.

Initially I was reluctant to buy a property together as this would affect my serviceability. However, this opportunity looks great and we're both happy to sell this potential IP within 2 years for a quick profit.

Question is, would this affect my serviceability if I buy and sell the joint IP before I venture off to my own IP?

Thankyou

 

If there is no ongoing liability then no your servicing won't be impacted

 

Thanks all I guess the only impact is that my credit history will have an additional enquiry which is a minimal impact right?

 

If you find a bank that provides a common debt reducer policy where they take your portion of the debt into servicing only, you might not need to sell if you domt want to.

 

What about capital gains tax? How much % if sold after 12 months?

 

One credit enquiry over a 2 year period is a non issue. You probably make more enquiries between your phone and utilities bills.

It's when you have a lot of enquiries over a short period of time that it shows a pattern and starts to raise concerns.

 

100% of the gain added to your income, before 12 months
50% if held longer than 12 months (and CGT applies)

 

Hi Terry what do you mean by "and CGT applies"? Isn't the 50% >12 months the CGT?

So let's say buy
Purchase price = 500k (March 21)
Sell price = 600k (April 22)

I would pay 50k in tax?

 

CGT doesn't always apply, especially if you are buying with the intention of reselling for a profit.

If it does apply and if you did sell for a gain of $100k you would first take off buying and selling costs and then apply the 50% discount and then add that figure to your other income for the year.

The CGT would likely be much less than $25k