Kensington Property Makes $600,000 in 6 Weeks! But Why You Should Beware!
Despite the Covid-19 pandemic and recent lockdowns, there are no signs that the property market is slowing down.
The Sunday Telegraph today reported that a couple sold a property at Kensington in Sydney's Eastern Suburb for a jaw dropping $600,000 more than they paid for the property just a mere 6 weeks earlier.
It is reported that the couples suffered from buyers remorse and were ironically concerned that they paid too much for the property.
This is once again a sign of the current vibrant Sydney property market.
From our own experience at Vizzone Ruggero Twigg Lawyers, our conveyancing team have noticed a perfect storm of low availability of properties on the market and eager buyers, resulting in some astonishing results.
Despite this great result in "flipping" the property and making a $600,000 profit in just six weeks, we do warn clients to think carefully about such a strategy.
Obviously, there is always a degree of risk and there is no guarantee in achieving a similar outcome.
But most importantly, you must consider important tax considerations of such actions.
The couple would have paid their initial stamp duty for their purchase.
On their $600,000, they will also pay the maximum amount of capital gains tax as they have not held the property for the minimum period.
Finally, when they go to buy a new property, of course they will need to pay stamp duty again.
So while $600,000 is a tidy profit, as always there are many hidden costs when it comes to buying and selling property.
Need legal advice when it comes to buying or selling property? Vizzone Ruggero Twigg Lawyers can help with your conveyancing transaction. Call 02 9667 1271 or email us today.