03 5152 2800

Robert: 0400 873 946
Duncan: 0456 873 946

In This Section

How long do I keep an investment property for?

Home ยป FAQs

This is a question for your accountant in relation to your own personal situation however to answer generally when buying an investment property this involves substantial upfront costs like stamp duty and legal fees, which can amount to thousands of dollars. When you sell the property, you’ll also face other costs like the real estate agent’s selling commission, capital gains tax and Conveyancing costs.  You should usually budget for around 5% of the property selling price as additional expenses.

In order for you to make a profit on the sale, the value of your investment property needs to grow by more than the value of these costs and the after tax costs associated with holding onto the property. This is why you should probably regard property investment as a long term strategy and be prepared to hold onto it for at least five to ten years.  Obviously during periods of rapid market growth, you may be able to make a faster profit however this is not always the case.

A sensible approach is to treat your investment property as part of your overall investment portfolio for the long term creation of your wealth and do have a discussion with your financial advisor and or accountant in relation to your personal situation.

Memberships

MFAA Full Member
FBAA Accredited Member

National Mortgage Brokers Accredited Member

MFAA Approved Broker