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[FlyerInHi]

Where is Temecula?

[The-Shoveler]

Well prior to 1893 Temecula was actually part of San Diego county (well the area that is now TV anyway).

But I think almost everyone still considers it a suburb of SD even though it is in SWRC.

[sdsurfer]

I think the 19% might be a little high, but I guess you never know. I feel like there is a tone in your responses that you want someone else to tell you to move now. Go for it! Be happy now instead of next year!!

It sounds like the only reason to stay is the possible appreciation and potential tax advantages of living there a full 2 years. The appreciation might balance out or work against you depending on if north county appreciates at the same rate. Who knows? It might be worth considering a 1031 exchange if you were to convert your primary into a rental through which the proceeds go directly to the purchase in North County and do not get taxed until you sell the property in North County. There is an aspect of qualifying for the loan and paying your rent at the same time, but where there is a will there is a way right? Another consideration is that the negative $500 would most likely be a write-off I believe depending on your situation.

I love visiting my family in Temecula and it suits them fine, but I also always enjoy returning home to Encinitas and feel very fortunate to love where I live. It’s expensive because it’s desireable and worth it in my opinion, but not everyone’s which is fine by me. Good luck with everything!

[ocrenter]

[quote=sdsurfer]I think the 19% might be a little high, but I guess you never know. I feel like there is a tone in your responses that you want someone else to tell you to move now. Go for it! Be happy now instead of next year!!

It sounds like the only reason to stay is the possible appreciation and potential tax advantages of living there a full 2 years. The appreciation might balance out or work against you depending on if north county appreciates at the same rate. Who knows? It might be worth considering a 1031 exchange if you were to convert your primary into a rental through which the proceeds go directly to the purchase in North County and do not get taxed until you sell the property in North County. There is an aspect of qualifying for the loan and paying your rent at the same time, but where there is a will there is a way right? Another consideration is that the negative $500 would most likely be a write-off I believe depending on your situation.

I love visiting my family in Temecula and it suits them fine, but I also always enjoy returning home to Encinitas and feel very fortunate to love where I live. It’s expensive because it’s desireable and worth it in my opinion, but not everyone’s which is fine by me. Good luck with everything![/quote]

This is why the OP’s situation is so difficult to assess. We simply do not understand the severity of the problem.

I would agree with most that waiting the 2 years, realize some of the appreciation in value tax free, would be the best scenario. But at what cost? If he is involved in a death match with a neighbor from hell, or his health and the family is stressed by horrific commute, I would just sell and move right now. But if it is merely the weather or not liking the leasurely activities available, then suck it up for the 2 years.

[SD Realtor]

I don’t think it is a big problem to be taxed on profits. For me having a lifestyle that is impaired for 2 years is not worth paying several thousands in taxes. I would bail, pay whatever gains you have and count yourself lucky for that. Life is to short. Also don’t forget all of your closing costs. If you made upgrades to the home you can change your cost basis. Also any of your financing fees that were amortized you get to catch all the way up. When it is all said and done, you will not have as much as a taxable event as you think you may have. So what you get taxed on it… but you live the way you want to live and you still walk away with a profit.

[SD Realtor]

Also and someone with tax skills can correct me, but if the op was carrying cap gains losses from previous years, cant the gain from his sale offset those losses that he was carrying forward?

Agreed with you OC. To many unknown variables. I have learned by watching my kids grow up at the speed of light that time is way more important then money.

[ocrenter]

[quote=SD Realtor]Also and someone with tax skills can correct me, but if the op was carrying cap gains losses from previous years, cant the gain from his sale offset those losses that he was carrying forward?

Agreed with you OC. To many unknown variables. I have learned by watching my kids grow up at the speed of light that time is way more important then money.[/quote]

Agree with you regarding the realized profit will likely even out by the improvement cost already put into the house.

And yes, time is more important then money (well, with the exception of waiting for the bubble to burst back in the days) 😉

[BoomerAang]

Another point to consider, is the OP working around San Diego? Consider how much is saved from gas costs to offset that loss of $500 in mortgage vs. potential rent. I have friends that were spending around $1000 in gas every month to drive back and forth for work in Carlsbad. They switched to more gas efficient cars, so even if they have 2 more new car payments they are still ahead.

In the same situation, I would rather struggle a bit while keeping the TV house while renting in North County. Maybe rent a smaller place in North County as well so that the strain financially is not as painful.

[paramount]

[quote=SD Realtor] I have learned by watching my kids grow up at the speed of light that time is way more important then money.[/quote]

Wow.

Come on people, let’s keep it real.

Temecula ain’t that bad, and San Diego ain’t that great.

Temecula: So Cal weather, Texas prices.

[paramount]

I was in SEH about a month ago looking at new houses, you basically had to sign up for a lottery (via a mortgage approval process)to buy their stupid house.

screw that…

[paramount]

I think the OP might be a troll, seriously.

The thread title was essentially unrelated to the question…

A shock value title for the following question: Should I sell if I’ve occupied my house for less than 2 years.

[SDHopes]

[quote=paramount]I think the OP might be a troll, seriously.

The thread title was essentially unrelated to the question…

A shock value title for the following question: Should I sell if I’ve occupied my house for less than 2 years.[/quote]

I’m sorry you are so bothered by my post.
I wonder why you are so defensive?

Thank you to everyone who has given helpful advice for my real life situation.

[SDHopes]

[quote=SD Realtor]I don’t think it is a big problem to be taxed on profits. For me having a lifestyle that is impaired for 2 years is not worth paying several thousands in taxes. I would bail, pay whatever gains you have and count yourself lucky for that. Life is to short. Also don’t forget all of your closing costs. If you made upgrades to the home you can change your cost basis. Also any of your financing fees that were amortized you get to catch all the way up. When it is all said and done, you will not have as much as a taxable event as you think you may have. So what you get taxed on it… but you live the way you want to live and you still walk away with a profit.[/quote]

Thank you, I am grateful for your advice. Ignore those who are trying to turn this post into something ugly.

[flyer]

To the OP:

You have every right to feel however you feel about a certain geographic location for whatever reasons you may have. We all have our preferences with regard to housing, but I’m sorry to hear this experience has cost you time and money.

I’m sure you are young, and, now that you know what you want, and what you don’t want, you’ll recover in time, and all of this will be but a distant memory.

Good Luck!

[SDHopes]

[quote=paramount][quote=SD Realtor] I have learned by watching my kids grow up at the speed of light that time is way more important then money.[/quote]

Wow.

Come on people, let’s keep it real.

Temecula ain’t that bad, and San Diego ain’t that great.

Temecula: So Cal weather, Texas prices.[/quote]

Paramount,

What made you change your tune?

http://piggington.com/should_i_buy_in_temecula

[Author]

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