Jump to content

Buying a House


RavensTillIDie

Recommended Posts

Is there room to add a Garage?

Still waiting to sell mine. We've dropped it 25k over the course of 3 months. The "steep" driveway is scaring everyone off. I just want it sold. I don't care if I make any money on it.

 

Edited by TENINCH
  • Like 1
Link to comment
Share on other sites

5 minutes ago, TENINCH said:

Still waiting to sell mine. We've dropped it 25k over the course of 3 months. The "steep" driveway is scaring everyone off. I just want it sold. I don't care if I make any money on it.

 

You should probably remove the link.  With the address, i can track down loads of information on you, and i'm not even that good of an internet sleuth.  

Also, that's what constitutes a steep driveway in your area?  I live in a really flat area, and i wouldn't even consider that steep.  Go to PA or TN and that'd be considered flat.

  • Like 1
Link to comment
Share on other sites

Just now, theJ said:

You should probably remove the link.  With the address, i can track down loads of information on you, and i'm not even that good of an internet sleuth.  

Also, that's what constitutes a steep driveway in your area?  I live in a really flat area, and i wouldn't even consider that steep.  Go to PA or TN and that'd be considered flat.

Yeah it's a little steeper than the picture shows. Every showing that's the complaint we get. 

Link to comment
Share on other sites

39 minutes ago, TENINCH said:

Yeah it's a little steeper than the picture shows. Every showing that's the complaint we get. 

I guess i kind of get it.  What i don't understand is why that's a problem.  It's not like ice is an issue in GA.  Weird.

Nice looking house though.  Have you lowered the price at all to try to bring in more eyes?

Link to comment
Share on other sites

1 minute ago, theJ said:

I guess i kind of get it.  What i don't understand is why that's a problem.  It's not like ice is an issue in GA.  Weird.

Nice looking house though.  Have you lowered the price at all to try to bring in more eyes?

Yeah we want more showings. Hopefully someone will love it. The garage is huge and has it's own work area along with a fire suppression system if you're listing to music and start dancing. 

  • Like 2
Link to comment
Share on other sites

I'm gonna put mine up for sale July of 2020. August 2015 is when I bought it, so 5 years will have passed, thus I'd owe no capital gains tax on the sale.  Plus, I'd get more for it next year if the market remains hot. Even if it cools off, I might remain unaffected because houses don't come up for sale too often in my area and when they do, they're bought immediately because the location is very desirable.  

Link to comment
Share on other sites

2 hours ago, freak_of_nature said:

I'm gonna put mine up for sale July of 2020. August 2015 is when I bought it, so 5 years will have passed, thus I'd owe no capital gains tax on the sale.  Plus, I'd get more for it next year if the market remains hot. Even if it cools off, I might remain unaffected because houses don't come up for sale too often in my area and when they do, they're bought immediately because the location is very desirable.  

This is factually incorrect.

After two years, you can sell your home and enjoy a 250k exemption on your capital gains, or 500k if you are married. Meaning if you are single and you bought your house two years ago for 350k, you can sell it now for 600k and pay no taxes. Every dollar you earn after that is taxable, although realtor fees, county/city transfer tax etc all get deducted off the top before you factor in your gain. 

In order to qualify for this exemption, it has to have been your primary residence for two of the last 5 years. So you could move out and still get this exemption 3 years later and then do a 1031 exchange with the remaining balance (assuming you 'converted' the property to rental property). 

So if you bought your home for 350k, lived there for two years, moved out, rented out the home (for a minimum of 2 years), then sold it within year 5 for 1 million, you would take 250k off the top for your non taxable exemption (500k if married), then could do a 1031 exchange with the remaining 750k and pay no tax whatsoever. You would pay no tax by doing a 1031 if this happens in year 6+, but would be required to buy a property of or exceeding 1 million to pay no tax (you can always buy something for 900k and only pay tax on 100k in this scenario as well). Obviously you could have lived there longer than two years as well, in order to qualify for the capital gains exemption you just have to have lived there for 2 of the last 5 years, and I don't think it has to be consecutively

If any of that is confusing, just forget the 1031 exchange part of the equation and just focus on the first paragraph and a half. If you've lived there two years already, you already qualify for this exemption and it does not increase to 'unlimited non taxable gain' after 5 years 

Edited by N4L
  • Like 1
Link to comment
Share on other sites

 

46 minutes ago, N4L said:

This is factually incorrect.

After two years, you can sell your home and enjoy a 250k exemption on your capital gains, or 500k if you are married. Meaning if you are single and you bought your house two years ago for 350k, you can sell it now for 600k and pay no taxes. Every dollar you earn after that is taxable, although realtor fees, county/city transfer tax etc all get deducted off the top before you factor in your gain. 

 

Everything I've read says you need to have owned the home for 5 years, and lived in it for at least 2.

Link to comment
Share on other sites

3 minutes ago, freak_of_nature said:

Everything I've read says you need to have owned the home for 5 years, and lived in it for at least 2.

false. I know a developer that moves every 2-3 years and takes his 500k exemption.

 

I also just googled it, and saw nothing of the sort. If you have something that supports what you are saying, I would be happy to read it

  • Like 1
Link to comment
Share on other sites

4 minutes ago, N4L said:

false. I know a developer that moves every 2-3 years and takes his 500k exemption.

 

I also just googled it, and saw nothing of the sort. If you have something that supports what you are saying, I would be happy to read it

Is he reinvesting that money in other properties? 

Link to comment
Share on other sites

16 minutes ago, freak_of_nature said:

Is he reinvesting that money in other properties? 

yes, but he is not required by law to do so. 

by other properties, I mean other development opportunities outside of his primary residence. He buys and sells property for a living

Link to comment
Share on other sites

On 6/21/2019 at 9:21 AM, freak_of_nature said:

I'm gonna put mine up for sale July of 2020. August 2015 is when I bought it, so 5 years will have passed, thus I'd owe no capital gains tax on the sale.  Plus, I'd get more for it next year if the market remains hot. Even if it cools off, I might remain unaffected because houses don't come up for sale too often in my area and when they do, they're bought immediately because the location is very desirable.  

Only needs to be 2 years not 5 to avoid capital gains.

Link to comment
Share on other sites

On 6/20/2019 at 2:02 PM, TENINCH said:

Is there room to add a Garage?

Still waiting to sell mine. We've dropped it 25k over the course of 3 months. The "steep" driveway is scaring everyone off. I just want it sold. I don't care if I make any money on it.

 

Not sure if this was directed at me, but there is on the side at the top of the driveway. And it's something I am considering.

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...