The ACT is unique in that it has a leasehold land title system. In theory, you are renting the land from the Federal Government with a 99-year lease with the certainty of renewal. 

For tax purposes, as you are not acquiring the land, you can claim 100% of the stamp duty as a tax deduction (for investment properties) for properties purchased in the ACT within the financial year it was purchased. 

Go to this website: https://www.revenue.act.gov.au/duties/conveyance-duty#:~:text=Conveyance%20duty%2C%20commonly%20known%20as,duty%20rates%20for%20residential%20properties.  

No is the short answer.  

Rates in the ACT are determined by the property's unimproved value (UV), which means the land's value, not the improvements/structures upon it, determines the calculation of the rates    

Land tax in the ACT is only applicable for investment properties.   

If you have two dwellings on one title and live in one dwelling and rent out the other, then only the residence rented out attracts land tax. In this instance, the land tax is paid proportionally on the net lettable area rented. There are some subtle loopholes to this as well, which I can explain when we meet. 

Yes, 100%. It was well documented in the best-seller Freakonomics.  

Watch here: https://www.youtube.com/watch?v=aFYlgqv3T-w  

Agents are generally motivated by the financial incentives negotiated with the seller.  

Agents working for flat fees like $10,000 or 2% of the sale price have minimal incentive to hold out for a premium price on behalf of their seller clients.   
 
What generally motivates them is the speed and uncomplicated nature of the sale and the ability to turn over the deal as quickly as possible so they can move on to the next sale.   

Most sellers list with the agent they like the most or know, or who is cheapest (often flat fee) rather than those most likely to negotiate an incentive outcome or versed in the art of negotiation. I mean, even the seller out-negotiates the appointed negotiator (agent).  

We can use this to our advantage; we have developed a list of the 20 most favourable agents to buy from. The savings can be up to 15% of the market value.  
 
We cannot legally publish this list of the most favourable agents to buy from, but here are some of the factors that get those agents onto the list:  

• agents selling properties from their rent roll - interstate owners with limited knowledge of the value highly influenced by the agent  

• agents selling out of the area  

• agents with lots of stock - looking for high and quick turnover    

• agents with a high auction clearance rate, 95%; this means a higher likelihood of convincing the owner to take an offer on the day of the auction 

• agents with a preference to sell pre-auction   

• agents looking to retain properties in their rent roll, preferring investors over owner occupiers  

• agents selling complicated properties with factors like class 10 structures or unapproved dwelling elements  

 All these factors can be used to your advantage. Having the ability to exchange and settle quickly can also create bargaining strength.  

 The percentage of private sales is minimal in the ACT 1% of transactions. On occasion, this can be very fruitful. 

There is limited sales evidence of homes with Secondary Dwellings selling in Canberra; however, the sales evidence that we do have demonstrates a significant return on capital for those that build    

The Planning and Development Act changed in 2017, allowing for Secondary Dwellings to be built on blocks greater than 500sqm (about the area of a basketball court) in the ACT.    

Since 2017, only about 80 (Secondary Dwellings) per year have been built. Not because of the absence of market demand but primarily because of the perceived complexity of dealing with the ACT Planning bureaucracy.    

From our research, only a handful of properties with two residences had sold post-2017 when the laws were introduced. Most properties purporting to be dual residence homes are makeshift properties with Class 10 structures illegally rented as Granny Flats.    

As an auctioneer, I have sold two properties with two dwellings on one title in the last 12 months, and both have sold well above expectations.    

In Kambah, with a UV of $395,000, a three-bedroom Secondary Dwelling and a modest four-bedroom home sold for $1,525,000 in late May 2022. Video: https://youtu.be/oKW6vsITDYc    

In October 2021, we sold a basic 98sqm three-bedroom home and a three-bedroom Secondary Dwelling (design 384) for $1,080,000. Video: https://www.allhomes.com.au/20-montefiore-crescent-conder-act-2906. 

Most property websites have published rates and land tax values of the specific property being offered for sale.   

However, as rates and land taxes are calculated on the Average Unimproved Value of the property, there is a straightforward online calculator tool:  

https://www.revenue.act.gov.au/functionality/calculator-2022-23/index/_nocache#/resRates  

This tool also calculates applicable land tax rates based on foreign ownership %. 

Yes, is the short answer. However, you will need to have tenancy agreements in place. Residential Tenancy agreements are legislated in the ACT and are governed by the Residential Tenancies Act 1997. This means that the 100 conditions outlined with the residential tenancy terms can't be negotiated or changed because they are regulated.    

To enable two separate tenancy agreements, 1 per dwelling, you will need to have individual utilities, specifically electrical. This means both houses need separate electrical meters, and individual water metering is not required for a unique lease arrangement.   

Download ACT residential lease agreements: https://www.revenue.act.gov.au/__data/assets/pdf_file/0015/1502502/Standard-residential-tenancy-terms-Commencing-25-August-2020.pdf 

A complimentary BMT Tax Depreciation schedule will be provided if you build a Secondary Dwelling with Canberra Granny Flat Builders or an extension or improvements with Fixed Price Extensions.  

Please find an example BMT Depreciation schedule that incorporates CGFB designs 160 and Design 390. Download  

The report calculates the values of Division 40 and 43 deductions for the client/property owner.   

Division 40, also known as plant and equipment, are the removable assets within an investment property.   

Division 43, these are:  

• buildings or extensions, alterations or improvements to a building 
• structural improvements such as sealed driveways, fences and retaining walls 
• earthworks for environmental protection, such as embankments.  

Claiming the tax deductions has a significant financial benefit to the property owner. This is why having a property that combines 2 dwellings with new and old buildings - low deductible (older), and high deductibility (new) - is so appealing. 

Canberra has the highest median weekly rents of any major capital city in Australia, coupled with the lowest vacancy rate (1%).  

According to SQM research, the median weekly rental value for a 3-bedroom home in Canberra was a staggering $695 in August 2022.   

Canberra has the highest average weekly earnings of any state and territory, and its unique and bureaucratic planning laws mean a constant undersupply of rental properties.   

The strong labour market and low housing supply mean that rental prices are historically higher than in Sydney and Melbourne.   

While property land tax and rates are higher in the ACT, in comparison to most other major capitals, when you combine the cashflow generated from having two incomes from two separate dwellings whilst maintaining one set of rates and land taxes, Canberra properties are commonly more profitable and stable than any other capital in Australia. 

The stamp duty value is determined using that ACT revenue office calculator.   

We used the recommended buy price benchmark value researched and provided above to determine the stamp duty value.   

In calculating stamp duty, we have not applied the Home Buyer Concession Scheme or Pensioner Duty Concession Scheme and have applied as a non-owner occupier.   

Some other costs applied to the "Stamp Duty Plus" in addition to the Stamp Duty.  

• Legal fees for conveyancers or solicitors: $2000  
• Value of the building, EER and compliance report: $1500  

So the calculation of Stamp Duty Plus is: Stamp Duty + Legal Costs + Building Reports.  

In the ACT, the buyer of residential property must compensate the seller for the costs of providing the building, pest, energy efficiency and compliance reports.   

In the ACT, unlike other Australian states and territories, the full contract for sale is prepared before marketing the property by the seller. 

Over the years, as an auctioneer, I have seen examples of buyers paying much more than needed to secure a property and, as an auction bidder paying less, much less than the buyer was prepared to.

For the last three years, I have called, on average, 200 auctions per year as a freelance auctioneer across Canberra and the region.  

These 200 auctions have been for 20 different agencies. I did/do this intentionally to learn about the processes around auctions from all perspectives.
 
I've seen some buyers pay $100k more than they needed to and pay as a bidder $100k less than we would have if pressed or negotiated—generally, it's about timing and circumstance and picking the right agent.

Expertise is defined: as expert skill or knowledge in a particular field.

Do you think an expert can save you 3%, 5%, 10% or more when buying a property?

I wish to forge an ongoing relationship, which means I may need to turn up to 5 or more auctions for you and walk away from all of them if the deal is incorrect or if there is no value.

You will give me a blank pass to bid at an auction and negotiate on multiple properties. This is why we agree to a fee range that you select at the end of the process - 1.75%-2.5% - of the total sale price.  

A buyer's agent who negotiates a flat fee is generally motivated by transaction speed. If they are charging a flat fee of $10,000 or 2%, what is the incentive for them to pass over a property in pursuit of a better deal?

I hope to demonstrate your value to you, so you pick the higher fee at the end. I hope to build a strong relationship with you as you build your next property and grow your portfolio.

We are currently compiling a database of rental income examples of granny flats in Canberra.

This will be available in September 2022

We have clients generating 15%-20% utilising Airbnb. https://hotelyourhome.com.au/ are our recommended Airbnb specialist in Canberra.