NSW Investing in Mt Druitt

A CG gets added onto your income for the year. Best way to avoid CGT is don't sell. Another good way is don't earn anything that year.

But, look at it this way. If you have to pay CGT, you've made money, right? Well, isn't that what you planned to do, treat it as a good thing.

 

Thanks all for your replies, seems the general consensus is not to get into sydney market now.
I will reconsider other states such as QLD and see how i go.

I've seen previously if you live in an IP for a minimum of 6 months, then sell the property in the next 6.5 years you will not incur CGT. Correct me if I'm wrong I think it's a 7 years cycle and is a valid way to avoid CGT. But you do need to live in the IP for minimum of 6 months though.

 

Does anyone know about this?

If so, I lived in for 1.5 years and have owned it for 6 years .. Could be a perfect time ?

 

The accountants can fill you in better on this topic. Yes, you can sell CGT free BUT it has to be your PPOR, and you are only allowed one PPOR at a time, so if you are claiming the PPOR exemption on anther property, it won't work.

Speak to your accountant to see if it's applicable in your situation, because what works for someone else may not work for you.

 

Thanks skater

Might be tough as I recently moved out of the unit I'm thinking to sell

(I lived in it for 1.5 years when first purchased tho)

 

SPEAK TO YOUR ACCOUNTANT! Find out what is applicable to YOU.

 

Still have to pay CGT . Profits get distributed to beneficiaries who then pay CGT , though one trust can make distributions to another trust .

Cliff

 

Hence my extensive amount of noobie questions lol