irvinehomeowner
Well-known member
Are you looking at new? Don't forget the 5%IHO vs the 20%baller add ons for design center and landscaping.
Excluding capital gains on primary home, cash out or bank it?
- Thread starter ps99472
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NEW -> Contingent Buyer Assistance Program
If you plan to stay for at least 10 years, that $500k won't go away but you will be increasing your outlay if you move up to something more expensive in both mortgage and property taxes.
I did some #reversemonitoring and I'm not sure if the one property is realistically $500k in gains in the current market, probably more like $300-400k in true appreciation if you factor in expenses, upgrade costs and selling fees.
Even with $350k net gains I'm game for moving unless I have some emotional tie with the home.
He could probably use that $350k to rent a home for a few years sitting pretty on his pile of cash and wait for the right opportunity again to purchase.
I try not to turn down cash when its presented to me especially in a lump sum payment.
The Motor Court Company
Well-known member
you should pay back some of the capital gains to your mother in law who assisted you in the down payment.
irvinehomeowner
Well-known member
I've been thinking about this over the weekend... and I don't think you should do it unless you are unhappy with your current home.
Don't think about the appreciation... just enjoy the lower payments, buy the top of the line gold iPhone, get some Dropcams, buy another Nest for upstairs, build that balcony and eat out more.
Don't think about the appreciation... just enjoy the lower payments, buy the top of the line gold iPhone, get some Dropcams, buy another Nest for upstairs, build that balcony and eat out more.
homer_simpson
Well-known member
You have to really love that home to not sell for $500k in gains. If I was presented this scenario, I'll have my family's bags packed up by noon and head straight to Johns Creek again!
irvinehomeowner
Well-known member
The issue here is the replacement costs.FARMMMMMIE said:
If you plan to stay for at least 10 years, that $500k won't go away but you will be increasing your outlay if you move up to something more expensive in both mortgage and property taxes.
I did some #reversemonitoring and I'm not sure if the one property is realistically $500k in gains in the current market, probably more like $300-400k in true appreciation if you factor in expenses, upgrade costs and selling fees.
irvinehusky
New member
I'm mixed on this one. It depends on what you're going to do with the gains. Right now, I wish I was still renting so that I would have had all that cash to invest in certain beat up markets. I'm not talking about Google, Facebook, Apple, Netflix or Alibaba. 
I was forced to move during the last major stock bear market and I was so glad that the money was in my house, still there to take with me after selling it since I paid cash for it. If I didn't pay cash, I'm sure a lot of it would have been in the stock market as well and it would have been a very painful situation. Having no debt was very reassuring during that time.
I was forced to move during the last major stock bear market and I was so glad that the money was in my house, still there to take with me after selling it since I paid cash for it. If I didn't pay cash, I'm sure a lot of it would have been in the stock market as well and it would have been a very painful situation. Having no debt was very reassuring during that time.
homer_simpson
Well-known member
irvinehomeowner said:
Even with $350k net gains I'm game for moving unless I have some emotional tie with the home.
He could probably use that $350k to rent a home for a few years sitting pretty on his pile of cash and wait for the right opportunity again to purchase.
I try not to turn down cash when its presented to me especially in a lump sum payment.
irvinehomeowner
Well-known member
But it doesn't sound like he's going to rent... sounds like he wants to buy a $2m home.
Even if you rent, what is that cost compared to staying and just paying your mortgage? You lose any ownership tax benefits and unless your $350k can sufficiently make more than Irvine real estate appreciation, you traded a lifestyle of ownership to being a tenant, which sometimes isn't an ideal situation.
We thought about that scenario, cashing out and renting instead of buying at these mini-bubble prices, but the current rent for an SFR in Irvine would be close to a mortgage and we wouldn't be building any equity (thanks to low interest mortgage). If home prices don't move up at all, at least as an owner, you are "saving" the principal portion of your "rent".
For certain people, renting makes much more sense, but if you are not an FCB and are financing and plan to be in your home for a while, this low rate environment makes owning ideal compared to rental rates in Irvine.
Even if you rent, what is that cost compared to staying and just paying your mortgage? You lose any ownership tax benefits and unless your $350k can sufficiently make more than Irvine real estate appreciation, you traded a lifestyle of ownership to being a tenant, which sometimes isn't an ideal situation.
We thought about that scenario, cashing out and renting instead of buying at these mini-bubble prices, but the current rent for an SFR in Irvine would be close to a mortgage and we wouldn't be building any equity (thanks to low interest mortgage). If home prices don't move up at all, at least as an owner, you are "saving" the principal portion of your "rent".
For certain people, renting makes much more sense, but if you are not an FCB and are financing and plan to be in your home for a while, this low rate environment makes owning ideal compared to rental rates in Irvine.
homer_simpson
Well-known member
$2m home?? baller!
irvinehomeowner
Well-known member
Irony!FARMMMMMIE said:
usctrojancpa
Well-known member
He's banking up those savings so that he can buy that baller $2m home.qwerty said: