Why, your transaction cost is actually higher in the stocks unless you’re trading in a 401K or IRA
On a cash deal, the transaction cost runs around 6%. If you’ve live in the home 2 years, it’s tax free.
Sell you stock for a 30% gain and you’ll pay 30% of the 30% (9%) in taxes.[/quote]
That’s nonsense. Transaction costs on RE are always higher than on stocks, except for sometimes when selling a personal residence. If we’re talking about “market timers”, then we’re talking investors who will pay the same cap gain taxes as a stock investor.
The OP MAY have an instance where it makes sense to sell now and buy something else because of the taxes, but that depends on whether he’s sitting on a gain or a loss right now. If he’s sitting on a loss, he’s better off holding on MORE than 3 years and being able to write off the entire loss as ordinary.
