Let’s say one sold their house (cost basis 150K) for 500K and pocketed 300K but then later “had” to buy that same house back for a MILLION dollars. The taxes question seems pretty insignificant when you consider that 300K would cover the roughly $8500 a year differential in taxes for a VERY long time (35 years or so, not including growth on that money).
I’d be interested in learning of an asset bubble in the U.S. that corrected without nominal prices dropping. Perhaps there have been many? I don’t know. Can anyone enlighten us?
Finally, Powayseller…kudos to you. I sold my second house in 2003 (early, some would say, but due to a job change and move, it was the only real option) and the 1800% return I experienced on my down payment (in just 2 years)proved very helpful in getting me to where I am today. Good things can and do come from ignoring the MSM and those with a vested interest in seeing you make financial mistakes, er buying your “starter home” for 800K.
Powayseller simply has the anti-cry of the real estate machine’s “buy now or be priced out forever” hoax. I would hope that those questioning powayseller’s motives would look equally hard at the real estate brokers and loan officers who made the opposite plea.
P.S. If by “forever” the real estate machine meant “until 2007” please accept my apologies. I completely mis-understood what you were trying to say 😉
