Agents Fees - Selling a house

['ssv']

Yes and by law the agent has to submit every offer no matter how stupid.
But the agent can advise whether they they think you should hold off for more or not.
In my experiance, agents like to try and get you to take the first offer you get.


You'll also have to deal with lots of different builders who want to look over your house as part of the sale/building inspecting. Although some people dont bother getting one.

 

[VS 5.0]

Also with the tax in NSW the first $100, 000 profit is exempt. Then you have to pay tax on the rest of the profit.

What tax is this and how does it work ? particularly the calculation of the profit ? does it allow for improvements etc ?

 

['ssv']

Im not sure how exactly the capital gains tax is calculated/measured.
By improvments do you mean renovations?
Money spent on reno's is money spent. So if the reno cost 20k and bring in say 40k. 20k (as part of the over 100k) will be taxable.

 

[VS 5.0]

I didn't realise states assessed their own CGT. I thought it was only a Federal tax. I also would have thought that if the states could charge this type of tax, his Excellency the Emporer would have implemented it in WA long ago.

 

[Reaper]

Im not sure how exactly the capital gains tax is calculated/measured.
By improvments do you mean renovations?
Money spent on reno's is money spent. So if the reno cost 20k and bring in say 40k. 20k (as part of the over 100k) will be taxable.

GCT is a federal tax and does not apply to ones principal residence (aka the family home). As for other assets then reading the ATO website would be best - it's waaaaay to complicated to summarize here. That said, I don't think there is any "$100k threshold but stand to be corrected on that one.

 

[Yergin]

Never heard of fees like that for selling the family home, i thought it only applied to investment properties.

For everyone the quick story of it is that we bought the unit we were renting (awesome move in day lol) now our neighbour is building a new house and will be selling, we like the area and his place is bigger so we're looking to move across the road! (again moving day will be great) so obviously looking at how much they want, what we can get, what will mortgage be, can we afford it etc etc.
lots of if's but i think if i prepare myself fully before talking to an agent i can be better prepared for that conversation.

originally we were going to rent this place out and use it to get a house for starting family, but who wants a rental across the road!!.

thanks for the replies.

 

['ssv']

GCT is a federal tax and does not apply to ones principal residence (aka the family home). As for other assets then reading the ATO website would be best - it's waaaaay to complicated to summarize here. That said, I don't think there is any "$100k threshold but stand to be corrected on that one.

I stand corrected. CGT is infact federal and having a very quick look on the ato website, I cant find anything specifically mentioning the magical 100k figure. Only that if its your main residents it's exempt.
Im sure it's there somewhere, as there was measures I had to take to avoid it 3 years ago.
To the OP if your really concerned, call the ato and ask them.

 

[VS 5.0]

Owner occupied property is exempt from CGT unless it has been rented to a 3rd party for income generating purposes during the period of ownership.

 

[greenacc]

In Sydney where property prices are mostly over 500k the agents fee is arround 2%

 

[alpha_au]

Just put our property on the market and got varying amounts of fees. From 2% to 3.3% plus "marketing" - basically an internet and local paper ad.

This is for a house in the Northern suburbs of Adelaide. Got told that the % amount decreases with the property value, eg. if its worth over $400k, 2%, 600k 1.5%, 800k 1% etc (These are not real figures, just an example)