What you need to know
If you are thinking of selling your investment property, there are a few things that you need to consider before you advertise your property for sale and at what price you can sell for.
Do you still owe money on your investment Property?
Even if you are selling it for more than what you owe on that loan, you should always speak with your banker before you put your property on the market.
It may be co-secured with your home loan or other loans and the bank will need to consider the overall position.
If there is insufficient equity, the bank may not be prepared to release their mortgage which means that you will not be able to complete the contract and will be in breach.
Have you spoken to your accountant about potential Capital Gains Tax?
There are many factors that could determine if have to pay Capital Gains Tax after the sale.
Before you list the property for sale it is well worth a quick chat with your accountant about how the sale may affect your tax liability at the end of the financial year.
Making a few enquiries before you decide to sell could possibly save you from a costly experience or a surprise at the end of financial year.