Restructuring ownership of your existing rental property investment
If a rental property investment makes a substantial gain on the original purchase price when sold to buy a new investment property the new equity can increase your ability to borrow based on the new value.
This disposal is caught under the ‘bright line rules’ and the gain on sale is taxable.
Traps when selling the family holiday home
A privately owned holiday home can be transferred to a family trust to provide protection to this asset.
If the trustees decide to sell the property less than five years later, then under the bright line test rules the gain on sale is taxable.
Buying or selling property at auction
If you are thinking of buying or selling an investment property now then auctions can provide the answer in the current cooler property market.
Sellers can still get good prices for their properties, especially if they are willing to negotiate with conditional buyers after the auction.
There are also opportunities for buyers to negotiate and create instant equity, particularly with vendors who are keen to exit the market.