Good News For Investors

On July 1st 2024 the rules affecting the Brightline Test are changing. Currently vendors who sell their properties that are not their main residence within 10 years of initial purchase are liable to pay tax on the capital gain they make. This period is being reduced to 2 years on July 1st. This means properties acquired before July 2022 and sold after July 1st 2024 will be exempt from the Brightline Test, bringing tax relief to some property investors and making it easier to sell.

Higher (partially deductible) interest payments, rates and insurance have put financial strain on many investors. There is an expectation that this Brightline change will encourage some investors to sell their investment properties. We are aware of buyers who have not found the home they are looking for or who have been waiting for this change to add to their property portfolios. We are expecting good levels of interest as these properties come to market.

The timeframe is short to be ahead of the pack and we are advising those thinking of selling to act now to beat the rush. There is nothing stopping those affected by the current tax rules from marketing their properties ahead of the change providing they do not enter into a sales and purchase agreement before July 1st. Now is the time to get advice from us about your options for selling. We are happy to assist with a current market appraisal and a marketing programme to sell in early July.

We advise you to seek independent advice from your accountant or financial advisor about how these changes affect you in the context of your own tax position.
Call now for more information and free advice from any of our residential sales team.