|Capital Gains Jamaica Real Estate is important when calculating profit after sale.|
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Capital Gains Jamaica
Jamaica capital gains are focused on calculating profits.
Flipping Jamaica real estate is not a really great prospect. This is due only to one major drawback in the sale of Jamaican real estate. It takes approximately 90 days to close a real estate transaction in Jamaica. This is despite a cash and or mortgage sale due to the delay at the Jamaican tax office. If we decide to enter into a Jamaican real estate sale transaction we must be aware of this delay. Normally the best method is to purchase and rent, then sell after repairs and additions. We have compiled a list of considerations why it becomes necessary to review whether to purchase and rent Jamaican real estate or to sell Jamaica real estate.
Capital gains on Jamaica property.
You must consider which transaction will result in greater earnings, rent or lease payments or sale proceeds. As a Jamaica real estate investor the capital gains on purchase accrue at a very low rate unless you purchased the property well below market rate. Accruing at 8% per annum immediate sales might not prove the most prudent option.
Recurring costs vs. Earnings on Jamaica real estate.
This is actually an attempt to calculate a break even analysis on whether it is more prudent to buy or sell Jamaica real estate. The recurring costs we speak about do not refer to mortgage payments, they actually refer to property insurance, property maintenance and repairs and Jamaican real estate government taxes. Using your initial purchase price, calculate how much these recurrent costs are, then deduct them from potential economic rent or lease earnings from the Jamaica real estate. If the difference (capital gains) is lower than yearly interest you could have earned from the bank then you might need to look more carefully at that investment.
Liquidating Jamaica property
At times though it might prove very profitable to hold Jamaica real estate to collect lease or rent earnings the location of the property and other events might create a scenario where it is impossible to earn a profit from sale of the Jamaica real estate property. This can be due to several factors, an escalation in crime, flooding and access to utilities such as running water, light and power and communications.
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