whether to buy house to renovate

G

gailey

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A friend has suggested we buy a house together and renovate to sell on. I am very keen on the idea and thinking very seriously about it. I was wondering though would we have to pay capital gains tax on any profit we make and would it be high. Also I was wondering if anyone reading this has any positive or negative experiences of this. Also is it a "good" time for selling houses or have we missed the boat?
 
Yes you would have to pay Capitial Gain Tax on any profit make.
The rate of CGT is 20%.
If you make a profit of 50 000 euro for example
You would have to pay 10 000 euro CGT.
 
Dr. Moriarty is right...if it's your PPR then CGT does not apply. Personally I think 'fixer uppers' are way over priced at the moment. Depending on what you pay for it and the cost of renovation, it might not make a lot of profit for you in today's market. Crunch the numbers really well.
 
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