‘I tell my clients that they need to be the driver of their financial destiny, not a passenger,’ says Kevin Lee of Smart Property Adviser ’those people prepared to learn will be in control of the sales process’. None of us wants to be in the position of the investor who bought a two story house: one story before buying and another story after! 

‘I tell my clients that they need to be the driver of their financial destiny, not a passenger,’ says Kevin Lee of Smart Property Adviser ’those people prepared to learn will be in control of the sales process’. None of us wants to be in the position of the investor who bought a two story house: one story before buying and another story after!

Things may not always be what they seem.’ Fair market appraisal’ could mean the value of items sold at a country fair, and it is well to remember that the’ purpose of appraisal’ is to make a living in the appraisal business! But back to interstate investing…A knowledge of land tax thresholds in each of the Australian states is an important consideration for maximizing profitability. This strategy involves investing up to the tax threshold in each state then moving to another state and repeating the process. Tax expenses are then kept low and profits at the best possible. Land tax is levied on property ownership above a certain value, and varies greatly from state to state. The Northern Territory currently has no land tax. Queensland’s threshold is $650 thousand for state residents and $350 thousand for absentees,$ 387k for New South Wales, $316k for South Australia, $300k Western Australia, $247k Victoria, $75k ACT and Tasmania, where property is cheapest, has a threshold of $25k. Thresholds often change with each state budget declaration, another reason for investors to keep themselves in the know.

A complete knowledge about land tax and thresholds can be easily obtained from state Government websites. In a quick scan of those sites, I found , ‘what is land tax’ ‘how is improved value calculated’ ‘who is exempt from land tax’ ‘how to pay land tax when living interstate’ ‘how do I get my property valued’ ‘what if I disagree with valuation’ ‘extended tax payment options’ and each site had an automatic calculator for accurate assessment. Property investing also needs expert advice. Many of the experts give valuable information on their websites and an internet search of property investing is a good way to start. Beyond self education, the advice of a professional who can demonstrate a track record of success and who has established themselves financially with their own strategies ,can save a lot of time and frustration. Written by guest author Sharon Freeman on behalf of Taylors Real Estate, who are specialists in Randwick and Coogee Real Estate.