Welcome to the Selling Southport Podcast. I'm Andrew Wright, principal of Professional Southport since 2008. Real estate isn't just my career, it's my passion with decades of experience. I know what it takes to succeed in the property market. Especially here in Southport, whether you're looking to buy, sell, lease, or invest, you can count on me and my team to deliver strategies that maximize your returns.

Let's dive into today's episode and get you one step closer to your property goals.

Hi, I am Andrew Wright from Professional Southport, and welcome back to another episode of Selling Southport. Your go-to local podcast for smart strategic property advice. Now today we're diving into something that a lot, a lot of property owners find a little bit tricky selling an investment property.

It's not the same as selling your residents. There are more moving parts, especially when it comes to tax timing tenants and how you prepare the property for market. If you've got an investment property here in Queensland, whether it's in Southport, along the Gold Coast or anywhere. And you're thinking of selling in the next 12 months.

This episode will help you plan the move smartly and profitably. Let's get into it. Let's start with the number one thing that makes most investors pause, capital gains tax, or CGT in Queensland and across Australia. If you sell an investment property for more than you bought it for, you're likely up for capital gains tax on the profit.

Now there are a couple of things that you need to know. If you've held the property for more than 12 months, you're generally eligible for a 50% CGT discount on the gain unless it's owned in a corporate or company structure. CGT is based on your income for that particular financial year. So if you sell in a year where you've already had a strong income, your tax bill might be higher.

And if you sell in an in, in a year where you've had very little income, you'll be able to reduce your capital gains tax. That's why I always say talk to your accountant before you list the property, not after the contract is signed because it's too late. A bit of strategic planning, like delaying or bringing forward a sale could make a big difference to your net result.

Also, keep in mind that you'll need solid records including purchase contracts, sale costs, and any capital improvements done on the property during the period of time that you've actually owned it. If you lived in the property first, then turned it into an investment, your capital gains tax liability will look a little bit different.

There are exemptions and rules around the principal place of residence, including the six year rule, which may provide up to a further six years of capital gains tax-free growth on your property after you've moved out. This isn't something you need to guess. You really need to get good accounting advice on these matters beyond tax.

Let's talk about timing. There are a few things to think about the property market cycle. What's buyer demand like right now, the rental cycle? Is your lease ending soon or are they tied in for another 1224 months? The financial year. What side of 30th of June are you selling and how will that affect your tax?

I've heard so many sellers say over the years that they sold their property in June. But they made sure that the settlement is in the next financial year, so they think that they can defer their capital gains tax for another 12 months or a year. That's simply incorrect. It's the date of contract and not the settlement date that determines in which year the capital gains tax event is triggered.

In Queensland, we often see more buyer activity in spring and early summer, but that doesn't automatically mean it's the best time to sell. In fact. Low stock in winter can often mean stronger competition. If your property is in Southport or the Northern Gold Coast, you're likely to attract both investors and owner occupiers, and that can play into timing too.

If the property is vacant, it opens up more buyer interest, but if it's tenanted, you need to consider the lease expiry dates and how accessible the home will be during the campaign. I'll cover that now. If your property is currently rented, you've got a choice to make. Sell it with a tenant in place, or wait until it's vacant.

Each option has its pros and cons. If you're selling with a tenant, you're collecting rent during the campaign, and yes, that helps the cash flow. Of course it does. It may also appeal to other investors looking for an income stream from day one if there's a long lease and it's at a pretty good rent.

Access can be tricky. You'll need to provide 20 no these days, 48 hours. Actually written notice for inspections in Queensland and tenants aren't always thrilled about multiple open homes. And given that an agent now requires a tenant's written authority to conduct open homes and undertake professional photography, that can sometimes be a challenge.

If you're selling the property vacant, it does allow for better presentation and staging. It offers broader appeal to owner occupiers who often will pay much more money than an investor, especially when they're emotionally attached to the home. You may lose some rental income during the preparation and the sale period, but often it's worthwhile doing that if it results in a much higher selling price.

If the tenant's lease is nearly up and they're on good terms, sometimes we can work with them to create a win-win. Clear communication and respect go a long way. The last thing you want is a tenant who's uncooperative. That can really affect how the property presents. They may not even let you take professional photos and measure up for a floor plan.

Now, let's talk about presentation buyers, whether they're investors or not, are emotional. Even with investment properties, first impressions really matter. Here's some of the things that you want to consider. Cosmetic touch-ups like painting, landscaping, or just professional cleaning can lift the value.

If the property's going to be vacant. You might want to consider staging. It can be expensive, but it helps buyers visualize the space and the lifestyle. Always invest in professional photography. Dark phone picks just won't cut it anymore, especially on the platforms like realestate.com and domain. If you are based interstate or overseas, your property manager and agent can help coordinate all of this for you, including access, styling, tradies for any last minute repairs.

This is not the time to cut corners. Selling an investment property is a financial strategy, not just a real estate transaction. Make sure you choose a local agent who knows how to market to both investors and owner occupiers. Make sure you're working with an accountant who can guide you through the capital gains tax analysis.

You probably could speak to a quantity surveyor as well to discuss the effects of your depreciation schedule and the sale timing. Your team can save you stress and time and a lot of money. So should you sell your investment property only you can answer that. But here's what I'll say. If your property is underperforming, if maintenance costs are rising, or if your financial goals have changed, then yes, it might be the right time.

But don't rush it. Understand the tax plan, the timing, respect your tenants, and work with a team who knows how to get it sold properly. You may wish to Google the 18.6 year property cycle online. It predicts property prices to peak in 2026 or 2027, followed by a period of perhaps four years of maybe sideways growth.

It's important to be educated on potential changes in the market. If you're thinking about selling your property or even just reviewing your options, I'd love to help. Let's book in a strategy chat. No pressure, just a straightforward conversation about where you're at and what you're hoping to achieve.

Reach out to professional Southport or head to our website. I'm Andrew Wright, and this has been selling Southport. Thanks for listening, and I'll catch you in the next episode.

Thanks for listening to the Selling Southport podcast. I hope today's episode has given you some valuable insights and practical advice on the local real estate market.

Whether you're looking to buy, sell, lease, or invest, I'm here to share my extensive experience and guide you every step of the way. If you have any questions or want to discuss your next property move, don't hesitate to reach out. Your success is my priority. Stay tuned for more expert tips and updates on the Southport property scene.