- This topic has 12 replies, 6 voices, and was last updated 17 years, 3 months ago by kw3393.
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August 3, 2007 at 5:20 PM #9700August 3, 2007 at 6:04 PM #70095stansdParticipant
I’m noticing the same thing…in the Rancho Bernardo area, I’m seeing lots of houses get listed for sale, and then they’ll wind up on Craiglist or the MLS a couple months later as rentals. Unless rents are up over 10% in the last year, the asking rental rates are often too high by a couple hundred a month as well…I think being a landlord is going to get tough…will be easy to find people looking for rentals, but very tough to find folks with good credit.
The house I’m living in is going to be an interesting case study…owner has to sell by next November or face 70K in Capital gains tax…he’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Stan
August 3, 2007 at 6:04 PM #70172stansdParticipantI’m noticing the same thing…in the Rancho Bernardo area, I’m seeing lots of houses get listed for sale, and then they’ll wind up on Craiglist or the MLS a couple months later as rentals. Unless rents are up over 10% in the last year, the asking rental rates are often too high by a couple hundred a month as well…I think being a landlord is going to get tough…will be easy to find people looking for rentals, but very tough to find folks with good credit.
The house I’m living in is going to be an interesting case study…owner has to sell by next November or face 70K in Capital gains tax…he’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Stan
August 3, 2007 at 6:08 PM #70097bsrsharmaParticipant“owner has to sell by next November or face 70K in Capital gains tax.”
Can you explain that?
August 3, 2007 at 6:08 PM #70174bsrsharmaParticipant“owner has to sell by next November or face 70K in Capital gains tax.”
Can you explain that?
August 3, 2007 at 7:27 PM #70117RealityParticipanthe’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Next time offer him a lot less and snicker while doing so.
August 3, 2007 at 7:27 PM #70193RealityParticipanthe’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Next time offer him a lot less and snicker while doing so.
August 3, 2007 at 7:53 PM #70123one_muggleParticipantI’ve seen a significant increase in the number of rental signs and for sale signs, sometimes both 8^), in the LA foothills.
I’ve also seen a few really high asking-rents, one of which recently foreclosed (hehe).
-one muggle
August 3, 2007 at 7:53 PM #70199one_muggleParticipantI’ve seen a significant increase in the number of rental signs and for sale signs, sometimes both 8^), in the LA foothills.
I’ve also seen a few really high asking-rents, one of which recently foreclosed (hehe).
-one muggle
August 3, 2007 at 9:03 PM #70129stansdParticipantI’m just going on what he told me…he bought another residence, and said that he had 3 years from the purchase of the other residence to sell-I presume it’s related to whether or not you are rolling the gain into a new residence. did a quick web search and found the following:
“If you live in your home for 2 years out of the last 5 years before you sell it, you will qualify for the personal residence exclusion”
I presume after he’s been out for 3 years, he’s no longer in the 2/5 club, and he’d have to pay capital gains on the sale.
Stan
August 3, 2007 at 9:03 PM #70206stansdParticipantI’m just going on what he told me…he bought another residence, and said that he had 3 years from the purchase of the other residence to sell-I presume it’s related to whether or not you are rolling the gain into a new residence. did a quick web search and found the following:
“If you live in your home for 2 years out of the last 5 years before you sell it, you will qualify for the personal residence exclusion”
I presume after he’s been out for 3 years, he’s no longer in the 2/5 club, and he’d have to pay capital gains on the sale.
Stan
August 3, 2007 at 10:01 PM #70141kw3393ParticipantDon’t get me wrong, I’m sure there are plenty of “sophisticated” real estate investors out there.
But in this current environment, there are way too many unsophisticated investors who’ve tried to create wealth by simply buying properties and renting them out.
Let’s face the REALITY. 80% of all of us can’t or aren’t even planning or prepared for retirement. A lot of these property owners are about to face some serious consequences. They “think” they know, but they don’t.
August 3, 2007 at 10:01 PM #70217kw3393ParticipantDon’t get me wrong, I’m sure there are plenty of “sophisticated” real estate investors out there.
But in this current environment, there are way too many unsophisticated investors who’ve tried to create wealth by simply buying properties and renting them out.
Let’s face the REALITY. 80% of all of us can’t or aren’t even planning or prepared for retirement. A lot of these property owners are about to face some serious consequences. They “think” they know, but they don’t.
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