Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.
The main difference is that consumer balance sheets are much stronger and there isn't some huge runup in leverage underpinning it. The latter is certainly the case in other markets (*cough* crypto), but hard to see it here. Banks aren't making no documentation loans and somehow getting the modern GSEs to buy them.
No. Supply and demand.
Someone offers me 7 figures for my house, my family and I will be living in a van down by the river before sundown.
Now imagine you actually sell for 5% over asking... in cash...
I mean what if this is the new normal? What if single family homes simply get out of reach and we need as a society to migrate to more high rise apartments for the materials efficiency? There are fewer people being born now, so the push could easily go the other way with less demand, but the supply issues might be the defining crisis of this century.
Eh... I dunno. I think it would be easier to transition to other building materials rather than try and change the psyche of the American people to get them to buy into higher density living, especially with families.
That’s what I’m afraid of and why I’m not selling. Sure, I can make a boatload of money selling my house. But then what I’ll be out there competing with everybody else and every month that goes by my purchasing power goes down.
What are you going to pick to wire up houses, and fit air conditioning systems with? Platinum?
I just got a text from a buddy last night looking for a caretaker for his 90 year old father whom is staying in the family house.
Or people in this country just start piling in with eachother like virtually everywhere else on the planet does.
Probably because they have lived there for decades and would rather die in their home rather than some strange place they don’t recognize. Their homes are probably paid off.
I see this more and more. Here in the DMV you see it in giant 4 and 5 bedroom homes, multiple families crammed into one place with a half dozen cars outside.
My grandpa was a never go to a home guy. He passed away and had a simple life that was lacking in a lot of things that would have improved his living circumstances. My grandma is still kicking and will never move. She lives off of SS and a small pension and gets by on a strict budget that I'm sure is being eaten away by the COLA every year. She lives in the Bay Area in like a 1200sf 3/1 that cost 52K way back when. She has a dead beat son and DIL but that's another story that live in and are useless, but my grandma could live the life she never thought she could have if she sold and went into a home. It would be safer(handicap accessible everything), could have meals prepped for her, maid service, could meet new people and enjoy other peoples company etc. She is lonely and imo that alone would mean the world to her for everyday quality of life.I see this more and more. Here in the DMV you see it in giant 4 and 5 bedroom homes, multiple families crammed into one place with a half dozen cars outside.
Honestly, it makes a ton of sense. You can all pool your resources and share utilities. I would strangle everyone in the home but
I think you don't pay taxes on the first $250k above your purchase price as a single filer, and $500k jointly. You can also write off a lot of stuff, including home improvements and costs associated with selling your home. I'm not a CPA though so probably want to check with an expert.
Cap Gains is determined by your income. $0-$80,800 (Married Filing Jointly) in income pays zero on Capital Gains for example. Not a tax guy though, just my understanding.
I saw that also.
There is an exception if it was your primary residence for 2 out of the last 5 years (which I get to use on the townhome I sold in Feb
)The income shouldn’t have anything to do with that as I am assuming you already filed the rental income as income. If not, then you are evading taxes.
That just made me think of something...as I remember reading that same statement somewhere.
Tricky situation perhaps. May depend in part on what state you live in? Maybe an error with your county? Or is the basis of your home the price you sold to yourself? You probably want the recorded value to be a true reflection of the market cost. But that could have challenges. I'm guessing in your state, your property taxes are based on the value of your home at time of purchase (that's the case in CA and then increases are capped annually if increases are warranted). If you changed your estimated value, you may owe back taxes?
It should simply be Z-Y. I can’t tell if Y is more than X (mortgage) or vice versa. I would just calculate it as the proper amount and you should have documentation to support it if it ever comes back.
Some good questions there. I'm in Florida, specifically Miami-Dade County. Looking at my 2020 property tax bill, it was based on assessed value (and matches the assessed value of the adjoining unit that sold at full price), not the "sold" price indicated in the property records.
Not trying to game the system at all because I certainly don't want any surprises.
I think the cost basis is what you enter in on the tax form. The IRS likely isn’t accessing all the home property records of every county in the US. I’d think if you had all the paperwork showing the cost of building that you’d be absolutely fine using that as your cost basis. That’s what I did on our last house but it didn’t exceed the $500k cap. If you get audited you have everything you need to show that you paid $X you shouldn’t have an issue just because the county had nothing else to enter besides the mortgage amount, which is meaningless.
Where in SoCal? If our kids were older I think I could convince my wife now was the time to sell, but as we have no interest in leaving the area anytime soon, just not feasible.
Temecula. Moving out of the area would be ideal for us too but we aren’t. Gonna try and find something here which is why we are requiring the rent back.
Good luck with all of that. For us (Orange/Yorba Linda area), rent would be quite a bit more than our current mortgage, so while cashing out sounds good, it's just doesn't make sense for us.
Same here. The rent backs we’re requiring in our selling are for just a few months to give us time to find a new place. And the dollar amounts are in line with our current mortgage. There’s a risk to it because if we don’t find a new home to buy we’re in a bad spot. But as they say no risk it no biscuit.
I’m in Austin as well and homes are going in just a couple days. Offers are minimum of 50k over asking price and inspection waived etc.. It’s crazy. I purchased less than 2 years ago and could easily sell for over 200k more than what I paid for it. Where would I go though?
