Sometimes I get students who have purchased a property with the intention to flip it, and then they change direction and decide that they might want to hold the property.
For example, they might look at the data and think, there’s going to be more growth in this area, i’ll hold it and ride some more growth…
This could be a good option for sure. You could put a tenant in it and set and forget.
But here are a couple of things to consider:
1. The property could get damaged after renting out for a year or so
2. Do you want to hold the property in the same company you’re flipping in?
2. Do you want to hold the property in the same company you’re flipping in?
You want to know your intention for the property before you get it under contract, it’s worth talking with your Finance broker & Accountant before you put pen to paper because changing entity can mean double stamp duty.
