selling primary?

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Submitted by moneymaker on April 21, 2018 - 9:06am

Is anyone selling their primary place and deciding to rent? Not me I don't have the guts even though I think it is a good idea. Just curious!
This ties into my economic question of how much longer can we go without a recession?
Anyone know how many non-prime mortgages there are out there? Just heard this term last week and it brought back memories.

Submitted by FlyerInHi on April 21, 2018 - 12:40pm.

I'm not selling my small condo because I need a place to live. However, if I had a big house, I would consider selling.... but not yet. There is still room for appreciation.

There will be a start of a recession within 2 years. It's been delayed because of the tax cut boosting the economy.

I would love the deficit hawks to extrapolate their dire warnings of the past. Perhaps they would advise us to sell our dollar assets and buy gold.

Submitted by scaredyclassic on April 22, 2018 - 12:02am.

I cant remember living anywhere else. it has no roaches and I have a little room of my own to hang out in now that kids are leaving. I'll stay until I can't climb up the stairs.

Submitted by hmc on April 22, 2018 - 9:59am.

If your home approaches 500k appreciation, it may make sense to sell it for tax exclusion reasons.

Submitted by scaredyclassic on April 22, 2018 - 10:03pm.

but I'm happy.

Submitted by CA renter on April 23, 2018 - 2:18am.

If we didn't love our house, which we consider our "forever" home, we would be very tempted to sell right now. I think the market is absolutely insane.

Submitted by Ribbles on April 23, 2018 - 6:16am.

We bought in Jan 2016 using the profit from our 2009 purchase, and I fully expected it to tank in value immediately after signing the loan docs, because that's how I roll. No selling this one any time soon, it's where the kids will grow up. Then it will be time for a single level golf course home in our 70's.

Submitted by The-Shoveler on April 23, 2018 - 7:54am.

IMO selling Primary is very risky unless you are planning on moving anyway (up/down size, location etc...), I also think this still has a few years to run yet.

IMO it is very unlikely the next recession will be a housing led recession like the last one so it would be unlikely to be a big enough profit to make it worth it unless you were planning on moving anyway.

Submitted by harvey on April 23, 2018 - 8:14am.

Without actual numbers, there's no way to evaluate the alternatives.

Pencil it out: include transactions costs, moving expenses, carrying costs of living in two places, factor in some value for your time and hassle.

I doubt that the result would be compelling.

Submitted by moneymaker on April 23, 2018 - 11:50am.

Yes I can probably make more money from the comfort of my living room by day trading the market on my days off, especially with the VIX where it is.

Submitted by flu on April 23, 2018 - 12:11pm.

moneymaker wrote:
Yes I can probably make more money from the comfort of my living room by day trading the market on my days off, especially with the VIX where it is.

probably not after taxes....

There's the alternative....I think... Still looking into the details...1031 exchange rental properties into your next "move up" primary home... Rent your move up home for 1-2 years....Sell your primary home take that $250/500k cap gains tax free. move into your "move up" rental that is now primary home... Live there for a long long time wait for one of two things to happen

1. You die, and your kids get a step up on the cost basis, so whatever you've accumulated in terms of depreciation recap and appreciation essentially gets wiped clean for your kids

2. If you do sell the place before you die, I believe it gets prorated based on percentage of time used as rental versus percentage of time used as a primary... If the later is large relative to the former, taxes owned on the former is a minor hit...

Scenario #2 is one of many scenarios I am considering..... ditching one or two rentals that seen hopefully 100+% appreciation exchanging it for a would be primary home...eventually.... Maybe I can finally put a lift in my next home's garage for hopefully a not so distant retirement. heh heh.

Submitted by FlyerInHi on April 23, 2018 - 12:29pm.

Based on 90% of homes that I have seen, it’s a good thing that people move. What better time to get rid of the hoarding than in a seller’s market?

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