Just in general, for someone who is targeting cosmetic renovation projects on homes, is it from financial perspective typically better to hold for 12 months and rent out the renovated home prior to selling to seek the Capital Gains tax benefit that would come into play?
For the sake of the question perhaps assume that you would not have any purchasing power left after buying this first home for reno. So this forces moreso the decision after the reno is completed the situation where you would need to sell to get enough $ to go onto the 2nd reno.
I'm thinking pro/cons might be:
- needing to sell to get the $ towards buying & starting another reno
- but then you could extract the equity increase if you hold for 12 months (assume this still wouldn't be a good as selling re purchasing power on next purchase)
- there would also be risk of deterioration of value via tenants too to consider too no?
For the sake of the question perhaps assume that you would not have any purchasing power left after buying this first home for reno. So this forces moreso the decision after the reno is completed the situation where you would need to sell to get enough $ to go onto the 2nd reno.
I'm thinking pro/cons might be:
- needing to sell to get the $ towards buying & starting another reno
- but then you could extract the equity increase if you hold for 12 months (assume this still wouldn't be a good as selling re purchasing power on next purchase)
- there would also be risk of deterioration of value via tenants too to consider too no?