When to sell Home - Finacial Perspective

r2ikyon · Post by **r2ikyon** » Mon Mar 19, 2007 9:28 pm

I bought a house for 281K (north east) 2 years back. Can some one tell me if I will be better off selling it now or next year?
Here is my situation:
I am planning on r2i (tentatively) in June 2008. By then it will be 3 years since I bought the home. I am assuming that there will not be any appreciation in my property value.
I am currently paying 2400 towards expenses for my home (mortgage and utility bills). If I sell the home and rent immediately I will be spending 1500 (including utilities).
My logic tells me that if house value does not increase and if I decide to R2I I will be financially better off selling it immediately.By the way I do not have a 401K plan as of now (I am only able to divert the money to mortgage and do not have any money for 401) and I am planning to put the money that I was paying towards mortgage in my 401K to get tax break.
Please advise.
Thx

LLLLWhenR2I · Post by **LLLLWhenR2I** » Mon Mar 19, 2007 11:26 pm

Looking at RE market and your return date, it would be better if you sell your house now. At least now we know the market but future is as always unpredictable.

But my above statement is completely independent of any goals you may have in your mind or AAP of yours. Make sure you have completed 24 months as primary residence to get tax free appreciation.

r2ikyon · Post by **r2ikyon** » Tue Mar 20, 2007 12:33 am

LLLLWhenR2I;13980
But my above statement is completely independent of any goals you may have in your mind or AAP of yours. Make sure you have completed 24 months as primary residence to get tax free appreciation.[/quote]

24 months as primary residence? that was a bouncer for me! sorry, can you please direct me to more info on this?

realentity · Post by **realentity** » Tue Mar 20, 2007 12:43 am

If it has been 2 years since you brought the house, then you do not have to pay tax on the gain that you make on the house.
e.g. you brought the house in March 1, 2005 for $281,000 and you sell it March 19, 2007 for $300,000. If you have lived in that house for at least 2 years, then you do not have to pay tax on the difference ($19,000).

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'Liar loans', where borrowers gave little proof of income, could be the next big threat to real estate market.
http://money.cnn.com/2007/03/19/news/economy/next_subprime/index.htm?cnn=yes

r2ikyon · Post by **r2ikyon** » Tue Mar 20, 2007 2:10 am

oh ok. got it thanks.