Sell or Rent Your Port Imperial Condo? The $865,000 Decision Gold Coast Homeowners Need to See
In this explanatory video, the presenter evaluates whether an owner of an $865,000 condo in Port Imperial should sell the property now and invest the proceeds, or keep it as a rental for the next five years. He walks through a detailed five‑year cash‑flow projection, showing that before taxes the rental scenario outperforms the sell‑and‑invest path by roughly $107,000 due to appreciation and rental income. However, he highlights the IRS primary‑residence exclusion rule, which requires the owner to have lived in the home for at least two of the last five years to avoid capital‑gains tax. Renting beyond three years eliminates this exclusion, triggering a six‑figure capital‑gains bill and depreciation‑recapture penalties that erode the rental advantage. After accounting for these tax liabilities, the rental strategy ends up about $20,000 worse than selling today. The video concludes that, despite the attractive pre‑tax rental returns, the tax‑shield limitation makes selling the condo the financially superior choice.
