We are part time renovators. We own our own home and have 4 IP’s.
We are currently renovating a house to sell in 3 months time.
Looking for someone who fits this criteria to join forces with us.We are starting off small with small basic houses so we can learn along the way.
We use original fittings in the house and re cycle where ever we can to cut costs and do all the work ourselves unless a tradesman is needed.As I do not have a full time job renovating and selling a house under 12 months is good from the point of view regarding Capital gains tax so it can done at least twice a year.
We would have an agreement that the house is only sold after renovations completed.
The house would most likely be cash flow negative from the start as I believe the days of cash flow positive houses are numbered.
Job or no job, if you sell within 12 months you pay CGT on the total net gain, after 12 months the CGT is paid on only half the total net gain.
You wouldn’t want to sell after 10 or 11 months would you?
If you sell within 12 months it is taxed as income. On that basis I think casey does have a valid point in that with no full time job, he still gets the marginal tax rates for his gains. As long as they’re not $200K per year (I wish)!!!
Cheers
Melhi casey
what state are you in?
as l am about to do this myself
cheers lynnem
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