To calculate the profit needed to offset the Additional Buyer's Stamp Duty (ABSD) paid on the previous property, the new property ABSD, and the property agent fee, you would need to consider several factors:
Previous Property ABSD: Determine the amount of ABSD paid on the previous property. ABSD rates vary depending on factors such as residency status, the number of properties owned, and whether the property is residential or non-residential. Calculate the total amount of ABSD paid on the previous property.
New Property ABSD: Determine the amount of ABSD payable on the new property. Similar to the previous property, ABSD rates will depend on various factors such as residency status and the number of properties owned. Calculate the total amount of ABSD payable on the new property.
Property Agent Fee: Consider the property agent fee paid for purchasing the new property. This fee is typically a percentage of the property purchase price. Calculate the total amount of the property agent fee.
Calculate Total Costs: Add together the ABSD paid on the previous property, the ABSD payable on the new property, and the property agent fee to determine the total cost incurred.
Profit Needed: The profit needed to offset these costs would be the difference between the selling price of the previous property and the purchase price of the new property, minus the total costs calculated in step 4.
Profit Needed = (Selling Price of Previous Property) - (Purchase Price of New Property) - (Total Costs)
Consider Other Costs: Remember to also consider any other associated costs such as legal fees, renovation expenses, and financing costs when calculating the total expenses and profit needed.
It's important to note that the profit needed to offset these costs will vary depending on individual circumstances, including the specific ABSD rates applicable, property prices, and transaction costs.
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