Who does not desire to have a home in this era of inflation? It becomes extremely daunting for those individuals who do not have homes to manage everything. Managing household expenses and also giving rent to the landlords is not easy. Moreover, a person also needs to save money to build their own house, which has become an extremely cumbersome task in this era. Therefore, a person should have own house whether one has to take a home loan for it. Giving a sum of money to the bank as an instalment of a home loan is better than giving the amount to the landlord as rent.
However, there are also people who take loans to buy land in foreign countries just to have a secure future ahead. Investing in property is highly profitable as land value always appreciates. Therefore, it always gives profit to a person as return on investment is quite good. Whenever a person buys property, everyone needs to pay land tax surcharge. It is mandatory for all; however there is an estimation that this land tax surcharge will increase in the upcoming time.
If you are thinking of investing in New South Wales, then consider other points like tax, as the land tax will increase there in the coming time. However, you can be exempted from paying this tax. Let us discuss that.
Principal Place of Residence
If you live more than 200 days in Australia in a year, then you can be exempted from paying this additional tax. The previous charge will be applicable to you.
Commercial Residential Premises
Hotels and student housing are also exempted from this additional tax. They will also continue with the previous rate but this is possible only if they fulfill specific requirements.
Australian Developers
If new homes are built by Australian developers only and they are sold, then they have the liberty to apply for an exemption or when they buy the property, they can take a refund within 10 years only if they fulfill certain requirements.
Build-to-rent Properties
If any Australian company constructs houses to give them on rent, then they can also apply for an exemption if they fulfil certain requirements.
When you are applying for an exception, make sure that you have all the essential documents so that the work does not get delayed. If there is a delay, then you will need to pay the increased land tax.
The main thing that matters is how to prepare for this increased surcharge rate. For this, firstly, you need to check how the increase in the surcharge will affect your overall property expense, or you can simply get counseling from a tax professional to learn how to manage the surcharge. This will help you a lot.
At K Financial Solutions, we offer loans to you so that you can fulfill your dreams and secure your future. We also want you to save yourself from an extra surcharge; therefore, what are you waiting for? Take a loan now and buy the property in any foreign country which will give you a good return.
