No real issue with capital gains. You make money, you pay...simple. When we sold our investment property I was on the hook for 80k. I made way more than that in equity, so while it hurt...I fully understood and accepted it with no issue.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
Totally understood, just wanted to make sure you were aware of it wasn't all profit, which you clearly are. Congrats.
Mad Mike
Well-known member
My kid rents a very clean mid century 1600 sq 3 bedroom bungalow in Markham Village for $2200. My daughter shares a 900sq main floor apt in a house near Huron & Harboard - $4200/mo.
Tried last week to buy a 'knockdown' bungalow , 1240sg ft, in east Burlington, because it had a 2 car seperate garage. Wanted the garage, rent out the knockdown to whoever. $869 ask, I went to 1mil. ..... nope not for me. The rent you could charge will not carry a mil mortgage on that . Sure it will go up but there is a fair amount of red ink in between.
Looking at a property on Bronte road in 'bronte' oakville that is pretty unique, last waterfront on the river with lake access, it was part of an old marina and you own 40ft out into the river on old riparian rights. Parking for 20 cars and 8 potential docks so 16 boats up to 45ft. The town is opposed to any developement , but the marina is grandfathered. Being sold as power of sale for 2mil, the last owner fought the town for 10 yrs to put residential on it. Could be a great retirement project. Payback would only take about 40 yrs LOL
Looking at a property on Bronte road in 'bronte' oakville that is pretty unique, last waterfront on the river with lake access, it was part of an old marina and you own 40ft out into the river on old riparian rights. Parking for 20 cars and 8 potential docks so 16 boats up to 45ft. The town is opposed to any developement , but the marina is grandfathered. Being sold as power of sale for 2mil, the last owner fought the town for 10 yrs to put residential on it. Could be a great retirement project. Payback would only take about 40 yrs LOL
Ya. It sucked royally don’t get me wrong. But I was able to drop it down considerably as I had plenty of RRSP room. Dumped everything I could and saved a ton of tax. Can’t use the money for 25 years, but at least it didn’t go to JT.
@crankcall does that mean you can theoretically build a new marina on the property? That’d be an awesome project. Long term of course. But if you’ve got the cash and love boats....why not?
Because if he is like the boat people I know, having 16 slips could quickly end up with cc having 16 boats in the water
How many boats/motorcycles/cars/pick your expensive toys can you have?Because if he is like the boat people I know, having 16 slips could quickly end up with cc having 16 boats in the water
Answer is ALWAYS:
n+1
True but if the condo was providing income and consider only half the gain is taxed not too shabby. Will the condo continue to rise or will it take a bath?
What to do with the after tax money? Another investment or a life experience?
I had a service call at a place on Kempenfelt Bay, north of Barrie. The guy struck it rich, bought a marina in a sheltered bay and made it into his residence. Unlike most cottages on Kempenfelt, his boat(s) won't get hammered by the waves.
I've done the cap gains math and like GG? said you only pay tax because you made money which is a good thing.
Both kids will get a big chunk to aid them in a downpayment..... someday. The rest we intend to fritter away. I'm searching for two "new to me' motorbikes and an enclosed trailer.
Both kids will get a big chunk to aid them in a downpayment..... someday. The rest we intend to fritter away. I'm searching for two "new to me' motorbikes and an enclosed trailer.
D
Deleted member 50930
Guest
Good dad
It wasn't me that said that, but I agree.
If you sell the condo, make sure you get the money invested so it keeps growing until they are ready to buy. You may want to transfer it to them soon after the sale so they get capital gains on that growth instead of you (depending on trust/relative income). They could also leverage it to increase their downpayment (into RRSP to get refund and then HBP to get it back). Has some downside (less return over time) but it's a way to get additional money for down payment if required.
One problem with giving money to the kids is the loss of control. They marry and buy a house with your money for down payment. The spouse turns out to be a lemon and they split. The lemon walks away with half your money.
My brother's first marriage (one of four or eight depending on how you count) ended due to his wandering eye and other body parts. His wife's father helped with the house down payment but he was smart. I think he sensed something about my brother.
The father loaned the money to just my brother. When the split came and the assets divided, my brother had to repay the loan.
Prenups are cold and heartless but not as cold and heartless as a greedy spouse.
Thankfully, protecting assets from spouses is not something that I have had to deal with. Depending on the amounts involved, it can be worth getting an accountant involved. If there was enough to buy the house, the family trust could buy the house and the kid and spouse rent from the trust. You dont get capital gains exemption that way but principal is safe.
Edit:
I do know someone that protected his assets. He was worth millions, she had assets of close to zero on the way in. They broke up and she wanted half. The house they lived in was owned by the corporation so when she tried to get half of that, they were able to use corporate money to pay an army of lawyers to protect corporate assets. She left with a table, he kept everything else. Ugly end to what was presumably a loving relationship at some point.
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bigpoppa
Well-known member
arent they also almost completely worthless to a judge?
All depends on how good the lawyers are I guess.
Buddy had a prenup he thought was air tight. It was not. She took more than would have normally been allowed.
It’s why my boss at the previous company told me...if you’re gonna get divorced try to do it a year after the FIFO assignment ends. You’ll never make up that amount you’ll be forced to pay.
D
Deleted member 50930
Guest
^
FIFO assignments?
First in first out queue?
FIFO assignments?
First in first out queue?
Remote site, fly in fly out. usually mining
bigpoppa
Well-known member
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