In a recent video Sean Wood of PropertyTutors shares his thoughts on some of the GST hurdles property investors need to be aware of when selling and buying property.
Property Investors buying property to hold as a rental don’t need to be concerned with GST when buying property. Property Traders do need to know the ins and outs of the changed GST rules and be vigilant when dealing with some of the property industry professions.
Sean Wood is the owner of PropertyTutors – a nationwide property mentoring business. Their clients are predominately traders where they are purchasing property, renovating and on-selling therefore they are GST registered and the revised GST rules can make or break a deal if not dealt with appropriately.
“PropertyTutors have specific clauses to cover their clients for GST rules. These clauses were drawn up by a leading property accounting and legal firm specially for their business.”
It’s important to get it right says Sean as the difference can be tens of thousands of dollars out of pocket when the intention is to make a profit.
It’s all starts with the vendor – many don’t understand the GST rules and so they don’t pay the GST and if they haven’t paid it you can not claim it says Sean in the video.
So two years since the new rules were introduced there are industry professionals (Accountants, Lawyers) and Real Estate Agents that are not advising their clients appropriately. Sean Wood says
“It’s very much a ‘caveat emptor‘ – buyer beware so we ensure our mentoring clients are very aware and have the legal clauses at their disposal so they come out on the right side of the GST equation.”