Prime Minister Anthony Albanese will pocket around half a million dollars in profit when he sells his Sydney investment property on Saturday.
The three-bedroom townhouse in the inner west suburb of Dulwich Hill will sell for around $1.9 million, up from $1.175 million when Albanese bought it in 2015, an increase of more than 60 percent.
This would cause Albanese to realize a capital gain of approximately $618,000 (if he borrowed the entire mortgage) and pay a capital gains tax of approximately $145,000 at the 50 percent discount rate.
MCG Quantum Surveyors director Mike Mortlock said The Herald of the Sun The capital gains discount would reduce the tax amount from $329,000 to $164,500.
He also estimated that Albanese would have negatively valued the property at between $18,143 and $24,782 a year, while charging about $680 a week in rent.
Real estate expert James Fitzgerald speculated that the Prime Minister was “probably recovering 45 cents on the dollar, and (the property) was probably recovering about $18,000, so it cost him $22,000 even with the benefit of negative gearing.”
“Maybe that’s why he’s selling it, because it’s costing him a lot of money to keep it,” he said.
Albanese’s salary is $564,356, putting him in the top tax bracket of 45 cents on the dollar.
Prime Minister Anthony Albanese (pictured right with partner Jodie Haydon) is aiming to make a $500,000 profit from the sale of an investment property in Sydney.
The two-level, three-bedroom semi-detached house in Sydney’s inner west suburb of Dulwich Hill will sell for about $1.9 million at auction on Saturday.
The home’s listing on realestate.com boasts that the two-level property has “contemporary style and high-quality design.”
“This fantastic home is impeccably designed for modern family living and offers three bedrooms plus a study,” the listing says.
“It displays sensational attention to detail, with striking finishes featured throughout an entire brick construction, with a fluid design that optimizes natural light, space and privacy.”
A “stylish kitchen” comes equipped with a gas cooktop, 60mm stone countertops, polyurethane cabinets and a dishwasher, the listing says.
The property’s long-term tenant, Jim Flanagan, made headlines earlier this year when he begged the Prime Minister not to kick him out during the country’s housing crisis.
“It just doesn’t sit well when (Mr Albanese) tries to be sympathetic to the majority of Australians who, like me, find the current climate extremely challenging,” Mr Flanagan said.
However, the struggling bar owner was ordered out in May with a 90-day eviction notice.
The property listing boasts “a fluid design that optimizes natural light, space and privacy.”
The two-storey semi-detached house has three bedrooms (one pictured) plus a study and two balconies.
The stylish kitchen is equipped with a gas cooker, 60mm stone worktops, polyurethane cabinets and a dishwasher.
After it was leaked that the Treasury was studying changes to negative gearing, a senior opposition spokesperson accused the Prime Minister of “earning a ton on his rental properties” and “climbing the ladder behind him” .
“It’s pretty funny, isn’t it? Now Anthony Albanese has finished making a ton from his rental properties that he’s selling and has gotten the Treasury to consider climbing the ladder behind him,” he told Daily Mail Australia in September.
Last month, Albanese faced a series of uncomfortable interviews in which he was forced to deny that this government planned to break its promise not to touch negative gearing or the capital gains tax.
Albanese previously said the decision to sell the Dulwich Hill home was due to “changing circumstances” and his upcoming wedding to Jodie Haydon.
Long-term tenant Jim Flanagan, 45, (pictured) begged Albanese not to sell the house, but was given 90 days to vacate in May.
“I have the right to make decisions in my personal life, including the sale of property I own, because I want to move my personal life in a different direction,” Mr. Albanese said.
“The property was purchased when my personal circumstances were different.”
He was still married to former New South Wales deputy premier Carmel Tebbutt when he bought the house in 2015.
If Saturday’s auction goes as planned, it will not be the first time the Prime Minister has made a tidy sum from the real estate sector.
In 2022, after securing the premiership along with his two taxpayer-funded official residences in Canberra and Sydney, Albanese parted with his Canberra apartment for $660,000.
The apartment on Macquarie Street in Barton, just a 15-minute walk from Parliament House, was sold at auction on August 20 after 24 days on the market.
The premier bought the apartment for $162,000 in December 1996, the same year he was first elected to the seat of Graylander in Sydney’s inner west.
Albanese still owns a residential home in the inner west Sydney suburb of Marrickville, where his constituency office is also located.