Selling your investment property is a significant decision with various financial and potentially emotional implications. At Evalesco, we believe in making decisions that not only benefit your wealth but also contribute to your health and happiness. Here’s how you can approach the sale of your property while staying Healthy, Wealthy, and Happy.
1. The wealth aspect: Managing the financial side
Selling an investment property comes with important financial considerations, especially when it comes to taxes like Capital Gains Tax (CGT). Here’s what you need to know to ensure your wealth is protected:
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- Understand Capital Gains Tax (CGT): CGT may be payable on the profit made when you sell your investment property. If you’ve held the property for more than 12 months, you could be eligible for a 50% CGT discount. To calculate CGT implications, you’ll need to know the property’s cost base (purchase price, associated costs, improvements) and subtract it from the sale price. If you sell within 12 months, the full gain may be taxed.
- Leverage the 6-Year Rule: If your investment property was once your primary residence, you might qualify for an exemption on CGT for up to six years. This could reduce your tax liability and increase your net return.
- Other Taxes to Consider: While GST is generally not payable when selling an investment property, it’s a different story if you’re selling a newly built or substantially renovated property. Also, ensure any outstanding land tax bills are paid before the sale.
Wealth Tip: Work with your Evalesco financial adviser or accountant to navigate these tax implications and maximise your return. Being proactive about managing your CGT can save you a lot in the long run.
2. The health element: Relieving stress and avoiding burnout
Selling property is often an emotional and stressful process, which can take a toll on your well-being. To stay healthy, consider strategies to manage the stress and keep your mental and physical wellness in check during the process:
- Seek Expert Guidance: Whether it’s a real estate agent, lawyer, or accountant, having the right team can reduce the burden of paperwork and decision-making. Let the professionals handle the complex parts so you can focus on what matters most to you.
- Plan Ahead: Selling a property can take time. Ensure you’re giving yourself plenty of lead time to address tax issues, find the right buyers, and ensure the sale aligns with your broader financial goals. Rushed decisions often lead to regret, so take it slow.
Health Tip: Continue to stick to your usual routine and incorporate stress-relieving practices into your week—meditation, exercise, or even a walk—while navigating the sale. Taking care of your mental and physical health will leave you better equipped to make wise financial decisions.
3. The happiness factor: Making the right decision for you
At Evalesco, we want to ensure that whatever decision you make brings you happiness in the long term. Selling your investment property might be the right step for you, but it’s important to consider how this decision fits into your broader life goals.
- Assess Your Goals: Are you selling to free up cash for a new investment or life change? Or are you simplifying your life for a more relaxed, stress-free future? Understanding your goals helps clarify whether this decision will lead to long-term happiness.
- Think Beyond the Sale: What’s next after you sell? Whether it’s reinvesting the proceeds, paying off debts, or funding your next life chapter, having a plan for the sale proceeds can help maintain your happiness after the property is gone.
Happiness Tip: Reflect on your goals and values before selling. Is this decision aligned with your vision of financial freedom and personal fulfilment? If so, it will likely lead to greater happiness down the track.
4. How Evalesco can help you stay Healthy, Wealthy, and Happy
Selling an investment property involves more than just understanding the financials. At Evalesco, we’re here to help you make informed, holistic decisions that align with your healthy, wealthy, and happy lifestyle. From advice on CGT and tax strategies to support during the sales process, we’re here for you every step of the way.
Next Steps:
- Speak to your financial adviser to ensure the sale aligns with your overall financial plan.
- Consult Our In-House Mortgage Broker, Kristi: If you’re considering buying another property or refinancing, Kristi can help you explore your financing options. She can guide you through the process of securing a new loan or assessing refinancing opportunities.
At Evalesco, we’re committed to helping you make choices that enhance both your wealth and your well-being. Contact us today to learn more about how we can assist in the sale of your investment property and your journey toward a healthier, wealthier, and happier life.
