Achi news desk-
Dear Nancy,
I had planned to sell our family cottage and investment property next year. With the recent budget change and the expected capital gains from the sale of these two properties in excess of $250,000 I am not sure if I should wait. What do you think?
Dear Steve,
Certainly, changing tax rules on capital gains should be considered but I don’t like a tax decision to dictate an investment decision. You must have had some reason that you are going to wait until next year.
Deciding to sell real estate is not something that can be done as quickly as when selling a stock or bond. There’s something to think about that might come in if you’re trying to sell before the June 25 deadline. There are many other real estate investors who will try to do the same thing. That can cause an increase in listings for sale. When there is more supply than demand, prices go down. You could sell for less than expected. You could lose more money than the higher tax rate if you don’t wait.
Consult your real estate agent for advice on pricing, the expected time to complete the sale and the cost to get your property ready to sell. In the end it may turn out that it is better to wait after the rush for the exit is over.
Nancy Woods is a portfolio manager and senior investment advisor with RBC Dominion Securities Inc. Send your questions to [email protected]
Source link
The post Ask Nancy: Should I sell my cottage and investment property now instead of next year? appeared first on Canada News Media.
