grocery_mony 8 Posted August 23, 2007 Share Posted August 23, 2007 I bought my townhouse 3 years ago for 83k and now the same floorplan townhouse in my complex are now selling for 190k. I live in the interior of BC and the market has been red hot but I see so many complexes going up that the thought of a eventual market correction is scaring me. My place is 30 years old and will need some upgrades in the range of 5k in the next couple of years but is still very solid. My plan if I do sell is to rent for 12-18 months(at a savings of 250-350 a month over my mortgage when all costs are accounted for). Right now I can easily afford my mortgage so thats not the issue but the thought of booking a 100k profit in 3 years along with lower stress level with my job(which has been very busy for the last 3 years but in the past I have been laid off 2 months a year to lack of work). If I do sell I would put 25k into my retirement savings plan then put about 65-70k into short term guaranteed investments along with about 300 a month I am saving if I rent with plans on buying again once prices come back down(if). Just want some peoples opinions on my plan and are open to otherer suggestions. Link to post Share on other sites
finztotheleft 0 Posted August 23, 2007 Share Posted August 23, 2007 Do you have to pay capital gains taxes on the sale....or is that just an American thing ? Link to post Share on other sites
grocery_mony 8 Posted August 23, 2007 Author Share Posted August 23, 2007 Do you have to pay capital gains taxes on the sale....or is that just an American thing ?Not if it is your primary reidence up here. At least that is what a friend said. Link to post Share on other sites
ajs510 122 Posted August 23, 2007 Share Posted August 23, 2007 Do you have to pay capital gains taxes on the sale....or is that just an American thing ?It's not even an American thing anymore, you can make up to $250k in profit on the sale of your home and not pay any taxes on it, as long as the property you're selling is your primary residence and you haven't claimed the tax exemption on another sale within the past two years. Good article here, thank you 1997 Taxpayer Relief Act!http://www.bankrate.com/brm/news/real-estate/20041018a1.asp Link to post Share on other sites
dms26 3 Posted August 23, 2007 Share Posted August 23, 2007 It's not even an American thing anymore, you can make up to $250k in profit on the sale of your home and not pay any taxes on it, as long as the property you're selling is your primary residence and you haven't claimed the tax exemption on another sale within the past two years. Good article here, thank you 1997 Taxpayer Relief Act!http://www.bankrate.com/brm/news/real-estate/20041018a1.asp and 500K if you are marriedsounds like a good time to get out since prices are coming down all over Link to post Share on other sites
scram 1 Posted August 23, 2007 Share Posted August 23, 2007 Yes. The ideal time to sell real estate is during down markets.Here's my own personal investing strategy...I take a position in a screaming hot market. Then, I hold, since after all- "It's going up!"Then, when reality sets in and there's a mass exodus for the door, I say to myself "Now is a good time to sell since prices are depressing and everyone else is selling too! After all... Since everyone else is selling, it must be the best thing to do or else everyone else wouldn't be doing it!" [/sarcasm]The most unfortunate remnant of this last R/E cycle will be the entrance of a most retarded concept into popular thought; that peoples houses are an "asset". They aren't. It's where you live. It's something you use, and home ownership is the cornerstone to financial security. Every house after your first house is an asset- the one you live in is a consumer product. It's a liability. You probably don't gauge the used car population to determine if you should sell your car in the event of a surfeit and it's a pretty safe bet that you aren't checking the corn futures every time you go to purchase a can of niblets, but all of a sudden, people think that the house they live in gives them a vested interest in the R/E market, which is financial illiteracy at its ugliest. There are only 3 "M's" that are a suitable reason to sell the home you live in.1) Moving2) More Kids3) Minorities taking up residence in your neighborhoodThe 4th M (Market conditions) is reserved for homes that you own for investment purposes, not the one you use and live in. Would you "book $100K profit"? Sure! Are you going to be able to buy cheaper tomorrow than you can sell for today? Maybe by a bit in the very short term, bot not by much. The "sell now buy tomorrow" margin on a $180K house is going to be within the fees and costs associated with a sale, so it isn't like you're going to reap any real "profits"- you're just going to ensure that you never own a home again, or that you will have to buy back in again at the same (or higher) price you sold for. Link to post Share on other sites
chrozzo 19 Posted August 24, 2007 Share Posted August 24, 2007 gl figuring it outid say rent it out maybe?would that make u some money? and then youd always have a place to get to if you needed it down the roadgl deciding anyways Link to post Share on other sites
Jennings7 0 Posted August 24, 2007 Share Posted August 24, 2007 Yes. The ideal time to sell real estate is during down markets.Here's my own personal investing strategy...I take a position in a screaming hot market. Then, I hold, since after all- "It's going up!"Then, when reality sets in and there's a mass exodus for the door, I say to myself "Now is a good time to sell since prices are depressing and everyone else is selling too! After all... Since everyone else is selling, it must be the best thing to do or else everyone else wouldn't be doing it!" [/sarcasm]The most unfortunate remnant of this last R/E cycle will be the entrance of a most retarded concept into popular thought; that peoples houses are an "asset". They aren't. It's where you live. It's something you use, and home ownership is the cornerstone to financial security. Every house after your first house is an asset- the one you live in is a consumer product. It's a liability. You probably don't gauge the used car population to determine if you should sell your car in the event of a surfeit and it's a pretty safe bet that you aren't checking the corn futures every time you go to purchase a can of niblets, but all of a sudden, people think that the house they live in gives them a vested interest in the R/E market, which is financial illiteracy at its ugliest. There are only 3 "M's" that are a suitable reason to sell the home you live in.1) Moving2) More Kids3) Minorities taking up residence in your neighborhoodThe 4th M (Market conditions) is reserved for homes that you own for investment purposes, not the one you use and live in. Would you "book $100K profit"? Sure! Are you going to be able to buy cheaper tomorrow than you can sell for today? Maybe by a bit in the very short term, bot not by much. The "sell now buy tomorrow" margin on a $180K house is going to be within the fees and costs associated with a sale, so it isn't like you're going to reap any real "profits"- you're just going to ensure that you never own a home again, or that you will have to buy back in again at the same (or higher) price you sold for.I almost lol'd at this one. Racism is funny apparently. (sw) Link to post Share on other sites
chrozzo 19 Posted August 24, 2007 Share Posted August 24, 2007 I almost lol'd at this one. Racism is funny apparently. (sw)only i they hoot u and get waaway with it Link to post Share on other sites
scram 1 Posted August 25, 2007 Share Posted August 25, 2007 I almost lol'd at this one. Racism is funny apparently. (sw)It's probably the most realistic and practical form of "racism" there is.One either accepts it or gnashes teeth and cries over it, but it's entirely real. If one doesn't think demographics play an enormous role in real estate pricing, they're either still living with mom and dad, or mentally retarded. Link to post Share on other sites
Tiltinagain 973 Posted August 25, 2007 Share Posted August 25, 2007 Yes. The ideal time to sell real estate is during down markets.Here's my own personal investing strategy...I take a position in a screaming hot market. Then, I hold, since after all- "It's going up!"Then, when reality sets in and there's a mass exodus for the door, I say to myself "Now is a good time to sell since prices are depressing and everyone else is selling too! After all... Since everyone else is selling, it must be the best thing to do or else everyone else wouldn't be doing it!" [/sarcasm]The most unfortunate remnant of this last R/E cycle will be the entrance of a most retarded concept into popular thought; that peoples houses are an "asset". They aren't. It's where you live. It's something you use, and home ownership is the cornerstone to financial security. Every house after your first house is an asset- the one you live in is a consumer product. It's a liability. You probably don't gauge the used car population to determine if you should sell your car in the event of a surfeit and it's a pretty safe bet that you aren't checking the corn futures every time you go to purchase a can of niblets, but all of a sudden, people think that the house they live in gives them a vested interest in the R/E market, which is financial illiteracy at its ugliest. There are only 3 "M's" that are a suitable reason to sell the home you live in.1) Moving2) More Kids3) Minorities taking up residence in your neighborhoodThe 4th M (Market conditions) is reserved for homes that you own for investment purposes, not the one you use and live in. Would you "book $100K profit"? Sure! Are you going to be able to buy cheaper tomorrow than you can sell for today? Maybe by a bit in the very short term, bot not by much. The "sell now buy tomorrow" margin on a $180K house is going to be within the fees and costs associated with a sale, so it isn't like you're going to reap any real "profits"- you're just going to ensure that you never own a home again, or that you will have to buy back in again at the same (or higher) price you sold for.Mostly very good post/advice (comparing the house someone lives in to a used car is ridiculous. Houses, over time, appreciate in value, whether you're living in them or they're investment property. Used cars depreciate virtually every day of their existance.)The point scram was making is right on though. Do not sell your house because you're afraid the price is going to go down. Stick with the 3 M rule as described above. Link to post Share on other sites
scram 1 Posted August 25, 2007 Share Posted August 25, 2007 The point I was making with the cars was this.Say you're watching CNN one day and Maria Bartoromo comes on to report that GMAC is relaxing it's lending standards for used vehicles due to a flood of used cars on the market and an overall decrease in used car sales. As a result, used cars are now selling for slightly lower prices than they were this time last quarter, and the prices are expected to continue to correct downward.Upon hearing this news, how many people run out and say "OMG THE USED CAR MARKET IS GOING DOWN! THAT MEANS I NEED TO SELL MY CAR AND START TAKING THE BUS!!" Probably none. For some strange reason, people think that by owning a house to live in, they now have a vested interest in the real estate market when that just isn't true. The home you live in is a consumer product. It's like underwear. You have no more interest in cotton futures by owning underwear than you have an interest in the R/E market by simply owning and living in a home, yet how many droolers have you heard over the past couple months talking about ACTUALLY SELLING THEIR HOMES because "duh market is goin' down!!" Tards, tards, tards, one and all. Link to post Share on other sites
WrongWay 0 Posted August 26, 2007 Share Posted August 26, 2007 If you can sell.... SELL!!!!!!!!!!!!!!!!!!Prices went WAY up, and now are slipping slightly. There is a MUCH larger crash coming.The housing market is like the NASDAQ of 1995-2002. Looking at early 2000 peak prices of 4700. Mid-2001 range of 3500-ish, may have looked like a bad time to sell. However, a year later it was 1300. Drop your price to 20% under market, and hope it sells. Of course, you're probably about 6 months too late. May have to go more than 20% below market. Link to post Share on other sites
WrongWay 0 Posted August 26, 2007 Share Posted August 26, 2007 Let me restate.... Look at how much your place could rent for. Compare that to the what it would cost someone to buy, 30 year fixed, full amortized market rate, PITI. If you can rent for less than buying, then SELL!!!!! Link to post Share on other sites
damien 0 Posted August 27, 2007 Share Posted August 27, 2007 do it man Link to post Share on other sites
MJINK3 0 Posted August 27, 2007 Share Posted August 27, 2007 I don't know what kind of interest rate you pay on your mortgage but it is wise to pay 1 1/2 or even double payments to pay down your principal. Especially if you do nothing with your money but put it into a savings accout. Keep your emergency money in case you get canned or quit(Depending on who you talk to this should be around 6 months worth of mortage and utilities) and either pay down your mortgage(Best choice) or invest it.Edit:Of course this is if you don't sell it with you saying you can easily make your payments now. Link to post Share on other sites
grocery_mony 8 Posted May 22, 2008 Author Share Posted May 22, 2008 Sold!!! Listed it first week of March, sold it today for 207k. After realty , legal fees and paying off the remainder of the balance are taken out I will walk away with 125k. As of July 1 I am homeless. Link to post Share on other sites
Fphillips 0 Posted May 22, 2008 Share Posted May 22, 2008 If you can sell.... SELL!!!!!!!!!!!!!!!!!!Prices went WAY up, and now are slipping slightly. There is a MUCH larger crash coming.The housing market is like the NASDAQ of 1995-2002. Looking at early 2000 peak prices of 4700. Mid-2001 range of 3500-ish, may have looked like a bad time to sell. However, a year later it was 1300. Drop your price to 20% under market, and hope it sells. Of course, you're probably about 6 months too late. May have to go more than 20% below market.Can you plz tell me when the crash will be over?Thx. Link to post Share on other sites
mark_999 0 Posted May 24, 2008 Share Posted May 24, 2008 Where abouts in the Interior of BC?From Kamloops here... Link to post Share on other sites
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