Difficult to start in a country where stamp duty are 16% !
Hi Everyone,
It is a honor to be able to write on this forum, i hope this message find you well.I am looking for good advise from qualified people that have experience in this matter, and i belive i found the right person... you ;-)My name is Oliver and I live in a country where real estate is heavily taxed by the government (they call that "the Stamp Duty", and it is 16% of the property value), and the gouverment keep a eye on how a RE investor is operating his business.
I would love to start my real estate investment with no money down, I belive it is maybe the most challenging but, at the same time the most rewarding as you really start with very little, and grow your way up, and without to much risk exposure. I am arleady able to find sellers, and buyers, and both understand and agree with my terms, the issues that i encounter are the following: Government will tax me as soon as I take ownership of a property, so if my name (or coorporate) is on any contract, i will be taxed, (the tax is 16% of the property value). Government will also tax me as soon as i resell the property (again 16%). So i would be taxed 16% as soon as any documnent with my name or company is issue, and another 16% when i sell the property... :-( Even with the investment model no money down (read your book a couple of times ;-), the "stamp duty" is a big killer and leave no room at all for any profit. Do you have any solution for this problem? I suppose some states in the USA have similar rules and i am sure there is a way to go around it. Any suggestions, help, guide, solutions are very very welcome please. Thank very so very much for your time. Oliver