I’m annoyed that the media (FTH, major newspapers, etc) state “facts” such as, “The Smiths bought the house for $250K, sold it / can sell it for $400K, and so made / will make $150K profit.”
What about sales commissions? Closing costs? Carrying costs? Improvements? Taxes? Insurance? HOA fees? Mello Roos? I have several friends who claim to have made big on RE sales, but I think they are using the “new math” rules – where you subtract B (original cost) from A (sales price) but don’t consider C and any of its cousins (expenses incurred during ownership) before claiming gross profits.
Not to mention capital gains for property held less than two years – but, with the RE market going south, cap gains will no longer be a worry for many! I think the media doesn’t give the full story, so many think it’s all gravy when in fact, they are the ultimate turkeys.
