Insights

If you’re looking to make some dollars out of property, it is important to understand where you fit in the scheme of buyers, as there may be implications for capital gains tax (CGT), income tax and goods and services tax (GST).

Hodges Caulfield’s Oren Flamm was recently featured in RealEstateView.com.au on the difference between a property investor or property speculator.

The article reads:

“Sometimes known as a property speculator, a person who trades in property is one who tries to gain income through purchasing property, and then selling it after a short period of time when the property has received significant capital gains or after renovations.

A property investor in comparison is someone who buys into property with the intention of renting it out or producing long-term capital growth. In juxtaposition, an investor typically holds on to a property for longer than a trader.”

To figure out which of these you are, read the full article here.