Properties in RSA to sell from abroad

[HouseInOz]

We want to sell our properties/land in Dullstroom, Pretoria and Camps Bay in RSA. Any advice how best to do this? Any help will be appreciated!!

[penny]

Hi

I am in the process of selling a flat. I am using an agent as the logistics to do anything from here are just to difficult.

It is going to be a long slow process but I am so tired of fighting with tenants and rental agents. They are more than useless

Penny

[21yearsoutofrsa]

Guys and Gals who keep proerties in South Africa shouldn't forget that they have Australain tax obligations in respect of any rent they receive, and Australian Capital Gains tax obligations when they sell the property.

The rules are complex and depend on what type of visa you have, but they need to be considered and remembered.

[penny]

I am aware of this but know that I will not have any capital gain, if fact will have a capital loss

Penny

[Nix]

Get an appraisal done on all the properties dated BEFORE you landed in Aus and this is used to assess the capital gains tax when you eventually sell. Advice for those that are going this road. We unfortunatley we not able to sell before arriving here (GFC and all), and will have to manage this process.....

[HouseInOz]

Oh NO :whome: :unsure:

Is it/can it be a problem then, if you keep your RSA properties (?)

Anybody able to give more information, advice please ?

Obviously we will (and want to) always pay all taxes that needs to be paid, etc. but just want to be aware of possible "pitfalls"

:blink: :blink: :blink:

[21yearsoutofrsa]

Here is a brief summary of your Australian tax obligations for guys and gals who end up having to retain properties in South Africa. This is NOT professional advise and you should seek professional advise when YOU are not sure of YOUR obligations. (sorry I have to emphasise this). The following is also a huge simplification.

If you have PR you are an Australain taxpayer from the time you reside in Australia, effectively the day you arrive. (for 457 visa's this may not be true. This is a specialized subject and professional advise should be obtained)

As an Australian taxpayer you are taxed on your WORLD wide income. This would include any rent recieved from your South African properties. Income recieved may have expenses incurred deducted from it, so mortgage interest, rates, management fees, insurance are deductable. If this results in a rental loss, this loss is deductable against other income (so it might not be bad.).

Capital gains tax is triggered by a capital gains tax event. The sale of your main residential property is not a capital gains event. The sale of an investment property is. The nature of a main residential property gains to an investment one, once you start to rent it.

To determine any capital gain it is the difference between the sale and the purchase price. The purchase price for someone immigrating to Australia will be the value of the property when they arrive (not the original cost) (so get a valuation before you arrive, I'm not sure what is considered valid but would suggest an estate agents valuation would be adequate, the higher the valuation the lower any future gain (NB NB))(also note the exchange rate at the date of entry to determine the AUD vale).

When the property is sold, if it is registered in the name of an individual there is a 50% discount on any capital gains (and losses).

If there is a capital loss it may be offset agaqinst any other capital gains. If there are none it will be carried forward until there are.

I hope that gives some idea of potential tax obligations. Like I said it is impossible to summarise the australian tax act in a few short lines.

Best wishes to those trying to sell before they move. I can imagine how burdonsome it may feel.

[HouseInOz]

Thanks, really appreciate this advice!