Investment Property Exit Strategy Guidelines

Your capital gain is calculated by subtracting your cost base from the sale price. The cost base includes: (a) Original purchase price; (b) Transaction costs (stamp duty, legal fees, agent commissions); (c) Capital improvements (renovations).

If you have held the investment for over 12 months, individuals and trusts qualify for a 50% CGT discount. Bypassing real estate agent commissions preserves your net capital return.

Under the Residential Tenancies Act 2010 (NSW), selling a tenanted property requires giving tenants proper notice or selling subject to the existing lease. Direct off-market transactions with buyers like ROAME Australia can accommodate tenanted properties, avoiding tenant eviction delays.

Land tax in NSW is calculated on the total taxable value of all land held at midnight on 31 December. If you plan to divest, exchanging contracts before 31 December can shift land tax liabilities for the upcoming year, subject to settlement details. Conveyancers should review contracts to ensure land tax adjustments are negotiated fairly.

Developing a structured property exit strategy is crucial for landlords, investors, and homeowners seeking to transition assets. Under the Income Tax Assessment Act 1997 (Cth), selling investment properties triggers Capital Gains Tax (CGT).

However, if you hold the property for more than 12 months, you qualify for the 50% CGT discount, which halves your taxable capital gains. Furthermore, for primary residences, the main residence exemption covers 100% of capital gains, provided the property was not used to generate income.

An exit strategy plans these sales across financial years to manage tax brackets, ensuring you retain the maximum possible capital. Direct off-market transactions allow you to coordinate exchange and settlement dates to align with your tax planning requirements.

Multi-property owners in New South Wales must manage ongoing land tax liabilities under the Land Tax Management Act 1956. Land tax is assessed on the total taxable value of all land held in NSW (excluding your primary residence) on 31 December each year. If your land value exceeds the threshold, you are billed 1.6% of the excess amount.

Selling non-performing investment assets off-market before the end of the year reduces your land tax liability. Bypassing public listings enables you to exchange contracts and settle quickly, removing the property from your asset registry before the assessment date and preventing land tax liabilities from eroding your net yields.

All property sales in New South Wales must follow the Conveyancing Act 1919 (NSW). This rule applies directly to your transition involving property portfolio exit strategies.

Sellers must attach specific documents to the Contract of Sale before advertising. These documents protect both parties.

For relationship separations, transfers comply with the Family Law Act 1975. For deceased estates, executors must obtain probate under the Succession Act 2006. The final transfer is settled securely online.

Property settlements in New South Wales must complete electronically. Conveyancers coordinate the transaction securely in the PEXA digital workspace. This workspace links banks, solicitors, and the land registry.

Funds are wired in real time. Outgoing mortgages are paid off instantly. The remaining cash goes directly to the seller's account. Title transfer occurs at the same time, ensuring total transaction safety.