Insider Tax Tips #2: For first time homeowners

Monday, 19th September 2016

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But if you&rsquo;re looking for a consolation prize, Queensland actually ranks as one of the more affordable states compared to New South Wales and Victoria especially &ndash; at least when it comes to property taxing and GST. Queensland has the cheapest government charges, with a house purchase costing the buyers $93,000 in deposit and government taxes, on a $465,000 median price according to a study by Meanwhile, Victoria will expect you to put up $109,835 for a house and $102,429 for a residential unit and NSW asks you to cough up deposit and stamp duty costs of $118,948. That still doesn&rsquo;t put out the fiery debate between millennials and baby boomers &ndash; a never-ending finger pointing game of who ruined the property market first. Perhaps you&rsquo;re looking to invest in a home early for future asset planning, or you and your partner have your eyes on that dream house. Sometimes that dream can end up being a nightmare, and with the property market in the state it&rsquo;s in we&rsquo;re walking into the film set of Nightmare on Sydney&rsquo;s streets. So what can you do? 1. Don&rsquo;t gun for the dream house straight away. Choose properties based on their predicted market value in future and whether you can use it as a tax asset. Property can become a source of income down the track. Talk to one of our income tax professionals about best future planning practices. 2. Consider a buyer&rsquo;s agent to help you find the ideal property for your budget. But remember &ndash; they&rsquo;re not free. Though a buyer&rsquo;s agent&rsquo;s fees aren&rsquo;t tax deductible if you solicit them to help find your new residential property,&nbsp;property management fees for letting your property as a rental are. 3. Despite Turnbull&rsquo;s gaffe earlier this year suggesting first time home owners should ask their parents, it&rsquo;s not an option to discard lightly. Whether it&rsquo;s decided to put up money as a gift, or set it out as a loan it will also affect your parents&rsquo; tax declarations. Find your nearest ITP Qld store to discuss the options. After further tips? Follow our Facebook page for updates See what services we offer Find your closest office