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kingdragonfly

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#270276 1-May-2020 22:22
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I've been laid off and I'm thinking about selling my primary residence, and renting so I could move to another city.

I've never sold a home. Is it true that I have to pay GST of %15 on the house sale?

If I sell for $600,000, would that mean I'd lose $90,000 to GST?

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  #2475030 1-May-2020 22:25
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Nope




kingdragonfly

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  #2475032 1-May-2020 22:34
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So is it only GST on the commision?

The local Harcourt is says "Fist a fee of $400, secondly on the purchgase price 3.25%, with a minimum of $6,000...The client shall pay the applicable GST"

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  #2475035 1-May-2020 22:56
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Speak to your agent about this but you would not pay GST on the sale price!




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  #2475037 1-May-2020 23:09
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You only pay GST if whatever entity owns the home deals with GST normally, i.e. thru a company OR you might be liable to pay GST if you CLAIMED it to buy the house previously (there may be a time limit to this, not sure)

 

You'll want to be very careful selling your home to go and rent.... might not be able to get back into the market easily if you leave it too long to buy again.... 


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  #2475038 1-May-2020 23:12
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no GST on house sale. GST on commission.

 

all commission is negotiable. negotiate the 3.25 to be inclusive of GST for example. i would try with 2% inc GST and see what they come back with.

 

negotiate free marketing.

 

do not sign for commission tie down period after your agreement ends even if they showed people your house.


kingdragonfly

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  #2475060 2-May-2020 07:18
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2% and GST inclusive...

Good idea. It's a 2BR, one study home in Johnsonville, Wellington.

Contrary to my real estate agent's advice, I'm not putting it to tender, but offering it at a fixed price. It's 125% of QV, at $600,000. I was tempted on selling in privately at $575,000.

I know I get annoyed wasting time by not knowing the house price, or even the house layout by looking at the ad.

I've also created nice blueprints of the house, and it'll be staged and photographed also.

I'm hoping this will make me standout from the crowd, and sell quickly.

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  #2475066 2-May-2020 07:41
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kingdragonfly: 2% and GST inclusive...

Good idea. It's a 2BR, one study home in Johnsonville, Wellington.

Contrary to my real estate agent's advice, I'm not putting it to tender, but offering it at a fixed price. It's 125% of QV, at $600,000. I was tempted on selling in privately at $575,000.

I know I get annoyed wasting time by not knowing the house price, or even the house layout by looking at the ad.

I've also created nice blueprints of the house, and it'll be staged and photographed also.

I'm hoping this will make me standout from the crowd, and sell quickly.

 

Definitely agree with the not knowing the price comment! I didn't even bother when I was looking to buy, I just skipped them feigning them to the owners being too precious and probably hard work. Probably totally incorrect, but time was of the essence


 
 
 

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  #2475128 2-May-2020 10:21
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kingdragonfly: 2% and GST inclusive...

Good idea. It's a 2BR, one study home in Johnsonville, Wellington.

Contrary to my real estate agent's advice, I'm not putting it to tender, but offering it at a fixed price. It's 125% of QV, at $600,000. I was tempted on selling in privately at $575,000.

I know I get annoyed wasting time by not knowing the house price, or even the house layout by looking at the ad.

I've also created nice blueprints of the house, and it'll be staged and photographed also.

I'm hoping this will make me standout from the crowd, and sell quickly.

 

in fact if you can find an agent that does 1% + GST then i'd start at that number in my nego. but you need to back it up with someone that actually sells at 1% + GST. think there is one or two out there.

 

remember to negotiate you start outside of where you want to end up. you cannot use your starting number as your final number. same with your price. if you want to sell at 600k list it at 609k. or 605k. but no more than 9k or you'll miss the target bracket at this level. more room at higher prices but not at 600k.


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  #2475131 2-May-2020 10:29
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Things are a bit crazy at the moment.  I've heard from multiple people that there is offshore money pouring in to buy NZ real estate as we are a 'safe haven'.  You might do a bit better than $575.





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kingdragonfly

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  #2475181 2-May-2020 11:36
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Unrelated, but Wellington IT job market has seemed to chill. ANyone who has a government job won't want to change, unless it's even more stable.

I'm seriously thinking about Auckland apartment rentals, for the active job market and waiting for the things to setle.

I see apartments already selling below QV in Auckland, before the outbreak.

I expect with the trashed AirBNB and serviced apartments markets, there's probably going to be some deals.

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  #2475227 2-May-2020 12:37
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sell, rent, and watch is a good idea


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  #2475393 2-May-2020 16:06
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Have you considered just renting your house out while you find a new job?

 

This gives you the flexibility of returning to it in the future.

 

The first house we bought in chch we only lived in for 2 years before having to move away for work for an unknown amount of time - turned out to be 8 years as we went overseas for jobs.

 

All that time it was quietly increasing in value and the mortgage acted as an enforced savings plan. Without the mortgage I think we would have enjoyed being rental and spending more money and not really saved anywhere as much as we did.

 

Once we returned to nz and had long term jobs that weren't going anywhere, we sold up and bought our current house 10 yrs ago.

 

 

 

For me the future state of the housing market is not predictable. You might sell and the market appreciates then you cant buy back in. 


kingdragonfly

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  #2475501 2-May-2020 18:55
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I think the days of increasing equity are over for a couple of years.

Plus there's so many nightmare tenants.

When I lived near Victoria University in Central Wellington (not my current place), three clean cut young white men moved into a flat. I'd guess they were 18 to 20 year olds.

They constanly hassled any women walking by on the public street from the front porch. They'd tear the mirrors off any car parked in front of their flat. (again inner city, near Courtney Place, so street parking was unreserved and full constantly)

When they left, they turned on the taps to the sink and flooded the place, for reasons unknown.

The landlord didn't give them back their deposit so they broke out all the windows in a late night raid.

Plus if you get someone who can't pay their rent, which is probably going to become more likely, it will cause the landlords some real financial problems.

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  #2475502 2-May-2020 18:56
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depends. IMO price won't go up, but unsure if will drop much for landed properties in good location and major city - probably sell in OP decision.

 

but if not major city, apartment/units, less desirable location, it probably goes down, only question is by how much - easy decision to sell in OP situation.

 

i don't think people have enough money to eat let alone pay rent, hence my opinion above


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  #2475597 3-May-2020 09:09
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kingdragonfly: I think the days of increasing equity are over for a couple of years.

Plus there's so many nightmare tenants.

When I lived near Victoria University in Central Wellington (not my current place), three clean cut young white men moved into a flat. I'd guess they were 18 to 20 year olds.

They constanly hassled any women walking by on the public street from the front porch. They'd tear the mirrors off any car parked in front of their flat. (again inner city, near Courtney Place, so street parking was unreserved and full constantly)

When they left, they turned on the taps to the sink and flooded the place, for reasons unknown.

The landlord didn't give them back their deposit so they broke out all the windows in a late night raid.

Plus if you get someone who can't pay their rent, which is probably going to become more likely, it will cause the landlords some real financial problems.

 

I had a similar experience with tenants who lived upstairs from me for a while and eventually had to move out because I couldn't take it any more. I honestly feel like this type of anti-social behaviour is becoming increasingly common.

 

You can't entirely eliminate the risk of bad tenants but the best way to mitigate it is to get a work reference as well as a tenancy reference for prospective tenants. Anyone who can hold down a decent job and perform well is far less likely to trash your property. Make sure that you get both a phone number and a work email address for the referee - the former allows you to have a detailed chat with them, and the latter allows you to verify that the referee legitimately works at that organisation.


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