REV Up Your Wealth: Navigating Land Tax & Luxury Cars with Ameer Rebehy
Managing land tax efficiently can make a huge difference in your investment strategy. In the latest Elevate Your Wealth episode, Ameer Rebehy, a seasoned conveyancer and car enthusiast, offers insights on minimising land tax costs, structuring investments, and building a financially sustainable property portfolio.
If you’re a property investor looking to optimise your tax strategies, this episode with Ameer is packed with valuable takeaways. Here’s a breakdown of his top tips.
Understanding Land Tax: What Property Owners Need to Know
Land tax is a state-based tax calculated on the cumulative value of properties under a single ownership. Ameer explains that it’s essential for property owners to be aware of the land tax threshold and how to avoid exceeding it unnecessarily.
Failure to consider land tax can lead to surprise bills, especially for investors building their property portfolios. Knowing the basics can help you avoid pitfalls and plan your investments effectively.
Strategies for Reducing Land Tax Costs
Ameer discusses several strategies that can help minimise land tax costs. For example, couples or business partners buying multiple properties can benefit from owning properties separately rather than jointly. This setup helps keep each person’s property portfolio under the tax threshold, reducing or even eliminating the land tax liability.
Another approach is to structure property ownership through entities like companies or trusts. However, Ameer emphasises that not all trust types qualify for land tax thresholds, so consulting with a tax professional is essential.
Timing Matters: When to Buy and Sell Property
Timing is key in land tax planning. Ameer points out that land tax is calculated annually, and property owners who delay sales into the next calendar year can face another tax bill. Selling before the new year is an effective way to avoid unnecessary costs.
For buyers, understanding the timing of land tax payments is equally important. Some property contracts include pro-rata adjustments, so understanding the terms can help buyers plan for any additional expenses.
Avoiding Common Mistakes
One of the biggest mistakes investors make is not registering for land tax when they acquire investment properties. This oversight can lead to hefty back taxes down the line. Ameer advises all property investors to register proactively to avoid last-minute issues.
Another common error is relying on a discretionary trust to hold investment properties without understanding that it may not qualify for land tax thresholds. Being proactive in structuring your investments can help avoid these costly mistakes.
Ameer’s Unique Approach: Balancing Cars and Conveyancing
Apart from his expertise in property, Ameer’s passion for cars adds a unique dimension to his perspective. He shares how his love for cars and his career in conveyancing intersect, drawing parallels between fine-tuning cars and optimising tax strategies.
This blend of interests keeps Ameer’s approach fresh and relatable, making him a great resource for property investors looking for down-to-earth advice.
Tune in for Practical Tips on Property Investment
Whether you’re an experienced investor or new to property, Ameer Rebehy’s insights on land tax, timing, and strategic planning offer valuable knowledge for building a more tax-efficient portfolio.
Listen to the latest Elevate Your Wealth episode and get practical, actionable tips that can help you maximise your investment returns.