Hell even if it takes me a week to paint a room, it's not the end of the world. If I'm at the place two years so be it. I just say a year because you either have to buy another property or report your capital gain and pay taxes if you sell in under a year. [MENTION=2988]b00sted[/MENTION] can confirm that one I think.
🏡 Better Homes OFFICIAL real estate bs discussion
- Thread starter OffshoreDrilling
- Start date
I'm not an accountant and everything we do is held for less than a year(save for a handful of rentals).
I think it's beneficial to hold it for over a year... You'll pay a much lower capital gains rate on the profit when you sell. if held for under a year, you pay whatever tax rate/bracket you're in. Plus there's the homestead stuff and a few other tricks.
You can also do a 1031 exchange and roll all of that money in to a new property, and I think that has tax advantages as well.
Like I said though, I don't really know that stuff. We buy a place, sell it in under a year, and let the accountant figure everything out.
edit: And in your case, you're exempt from capital gains taxes(profits up to 250k) if you live there for at least two years.
Oh for sure, it's doable without restrictions. Add a family and just paint and flooring takes 4 months. Ask me how I know.
I'm right there with you... Things are going much slower on the house...
And now my wife is swearing off any fixer-upper home in the future
Been toying around selling my house, the only thing holding us back would be not breaking even or making a small profit. Have had this house 8 years and besides the kitchen and half bath it's been fully remodeled with lots of upgrades.
Just looking online at the comps I am betting were still negative....
Just looking online at the comps I am betting were still negative....
1031s are the way to go for investors who continue to buy properties.
You postpone the taxes indefinitely and dump the money into new purchases. You take your profits when it is advantageous and pay the taxes on those profits. A good accountant can help you balance the gains against losses to minimize the tax burden.
Or, you keep the 1031s rolling until you die.
You postpone the taxes indefinitely and dump the money into new purchases. You take your profits when it is advantageous and pay the taxes on those profits. A good accountant can help you balance the gains against losses to minimize the tax burden.
Or, you keep the 1031s rolling until you die.
I attended an economics conference today. Learned a few things from a nationally known economics expert, Dr. Ted Jones.
The discussion was slanted towards Florida so there may be differences with Illinois.
Some of the important concepts...
1. The market is cranking. Real estate is returning excellent gains. Prices rose nearly 14% over last year down here. Dr. Jones predicts that this coming year will be similar. I asked him how far the prices can continue to rise and he said the end is not yet in sight. Peoples' debt to income ratios are low.
2. Dr. Jones thinks interest rates will be in the 5% range a year from now. That's still low enough to keep the market moving.
3. As far as mortgage companies, Dr. Jones suggested looking at the business models for companies you use. He sees re-financings dropping 41% compared to the past year. Mortgage companies who base their business on re-fis will be in trouble. Look for companies who finance new sales instead.
4. Marginal buyers are going to get priced out of the home buying game and will be forced to rent. This should continue to drive up rental prices.
5. Millennials are reaching the point where they will be buying homes. That's going to push the home turnover times down to 2-3 months rather than the balanced average of 6 months. If you are a Realtor, listing homes is what you should be doing now. It's a seller's market now and for the next couple years at least.
6. Income producing rental properties are another area to pursue now. Rising rents and a lack of homes for sale as well as higher prices on the homes should bring continued increases in renters who will need to pay more for their rental homes.
7. The best time to buy was three years ago. Buying now, according to Dr. Jones is a lot better than buying three years from now.
The discussion was slanted towards Florida so there may be differences with Illinois.
Some of the important concepts...
1. The market is cranking. Real estate is returning excellent gains. Prices rose nearly 14% over last year down here. Dr. Jones predicts that this coming year will be similar. I asked him how far the prices can continue to rise and he said the end is not yet in sight. Peoples' debt to income ratios are low.
2. Dr. Jones thinks interest rates will be in the 5% range a year from now. That's still low enough to keep the market moving.
3. As far as mortgage companies, Dr. Jones suggested looking at the business models for companies you use. He sees re-financings dropping 41% compared to the past year. Mortgage companies who base their business on re-fis will be in trouble. Look for companies who finance new sales instead.
4. Marginal buyers are going to get priced out of the home buying game and will be forced to rent. This should continue to drive up rental prices.
5. Millennials are reaching the point where they will be buying homes. That's going to push the home turnover times down to 2-3 months rather than the balanced average of 6 months. If you are a Realtor, listing homes is what you should be doing now. It's a seller's market now and for the next couple years at least.
6. Income producing rental properties are another area to pursue now. Rising rents and a lack of homes for sale as well as higher prices on the homes should bring continued increases in renters who will need to pay more for their rental homes.
7. The best time to buy was three years ago. Buying now, according to Dr. Jones is a lot better than buying three years from now.
https://www.redfin.com/IL/Wilmingto..._listing&utm_nooverride=1&utm_content=address
why dis so cheap, Besides having 19 neighbors
why dis so cheap, Besides having 19 neighbors
Is Dr. Jones a realtor too? This sounds like real estate bull shit. The market is tanking, median income is stagnant or dropping and interest rates are rising. All three of these things will lead to a decrease in home prices.
Well the thing is, 2 of those aren't likely to happen together. If the market continues to tank, interest rates will stay low. Yelen(sp) even stated yesterday that negative interest rates aren't out of the question.
I don't, but the economics guy at Flyns class does. I don't know why he thinks that, the fed stated just yesterday that negative interest rates aren't out of the realm of possibility.
Economics expert for Stewart Title. He was a Realtor years ago. I have listened to him each year and he has been pretty accurate. Remember, the conference was geared towards Florida, not Illinois. Down here, the economy is a lot better.
https://blog.stewart.com/stewart/author/tjones/
Thread Info
-
Created -
4KReplies
-
121KViews
-
Participants list
