What would you do? Strategy Question: Sell or hold

[TMNT]

so ive recently purchased a property at slightly below what I call market value

My original strategy was cosmetic reno, and sell for a decent profit in my books

After renos, the property is cashflow neutral, unfortunately, the area has high rates, water levies, and rent isnt spectacular

I see CG to be average to above average in the area in the short to long term

but the area is the average to slightly above average area of town, where I usually buy in the lower areas of town as my strategy

Once I refinance it and pull the equity out, it will be in the order of $4k-$5k per year cashflow neutral,

ive found a another one nearby which is a far bigger project and double the equity increase (If I can get it) , however I dont need to refinance/sell this one to fund it

Here are my options

1. Keep it and dont refinance, cashflow neutral, good CG prospects but id say slightly less as the area is a tad more pricier then the surrounds

2. Keep it and refianance, $4k-$5k negative and spend the $$$ on other projects

3. Finish reno, sell it, make a good profit but pay the full CGT

4. Finish reno, Hold it for one year, make a good profit but pay the partial CGT

 

[Terry_w]

Borrowing further against this property won't change the cashflow or tax position of this one because the funds will be used for another property and the interest should be attributed to this.

Also you don't have to do anything now, why not wait a bit - a year maybe and then you maybe get the 50% cgT discount too, lus some further growth.

 

[TMNT]

Borrowing further against this property won't change the cashflow or tax position of this one because the funds will be used for another property and the interest should be attributed to this.

Also you don't have to do anything now, why not wait a bit - a year maybe and then you maybe get the 50% cgT discount too, lus some further growth.

yes from a tax perspective, the implications im not too concerned about at this stage

im more wondering on what I should do in terms of keeping a cashflow negative property, with only reasonable CG prospects,

but if I do refinance, and spend it on further investments, the opportunity cost is higher in that im cashflow negative on top of interest costs for the increased lending, so its a double whammy, thus decreasing my overall cashflow, which at $5k per year is quite substantial