thinking about selling my house, need some advice.

[hoss 5,000+ posts]

this might be a great area for flip to come in and offer some advice...

im thinking about selling my house, and re-investing in an area closer to the uptown charlotte, an area that is guarunteed to appreciate in value exponentially in a relatively short time. ive been in my current home for less than a year currently, and with the current market i feel confident in saying that i could sell my house for $10-15k more than i have invested in it.

what fees/fines/penalties will i incur in selling my current property? will i get hit with capital gains tax? i know ill probably get realtor commisions (im guessing 6%), anything else that would take away from my post sale revenue? im trying to weigh the pros and cons on this...

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[bonesninja 5,000+ posts]

capital gains for sure...i do believe you must live there for 2 years in order to avoid these.

 

[hoss 5,000+ posts]

thats what im afraid of, but im reading mixed stories about it online. i might be able to find out from some of the people i work with to get a definit answer.

 

[bimma85 5,000+ posts]

this might be a great area for flip to come in and offer some advice...
im thinking about selling my house, and re-investing in an area closer to the uptown charlotte, an area that is guarunteed to appreciate in value exponentially in a relatively short time. ive been in my current home for less than a year currently, and with the current market i feel confident in saying that i could sell my house for $10-15k more than i have invested in it.

what fees/fines/penalties will i incur in selling my current property? will i get hit with capital gains tax? i know ill probably get realtor commisions (im guessing 6%), anything else that would take away from my post sale revenue? im trying to weigh the pros and cons on this...

Sounds you want to speculate instead of invest //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif. Not to say you can't make money either way, just not the same thing imo. Also, there is no guarantee in real estate //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif (especially with everything going on right now).

Why do you say this area will be going up? Lot of new expansion? many new jobs being created nearby? etc..

Also what do you feel your home is worth and what did you pay?

//content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif It's gonna be hard for most to help. Real estate is local, market activity can vary greatly. Have you talked to any local investors or realtors?

capital gains for sure...i do believe you must live there for 2 years in order to avoid these.

if he sells it super fast, it won't be capital gains...it'll taxed as regular income. Must have owned property for at least 1 year for capital gains.

however, I doubt there will be any profit after closing costs and realtor fees.

 

[pitbull12887 10+ year member]

this might be a great area for flip to come in and offer some advice...
im thinking about selling my house, and re-investing in an area closer to the uptown charlotte, an area that is guarunteed to appreciate in value exponentially in a relatively short time. ive been in my current home for less than a year currently, and with the current market i feel confident in saying that i could sell my house for $10-15k more than i have invested in it.

what fees/fines/penalties will i incur in selling my current property? will i get hit with capital gains tax? i know ill probably get realtor commisions (im guessing 6%), anything else that would take away from my post sale revenue? im trying to weigh the pros and cons on this...

come to waxhaw //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif , property value alone has went from $2000/acre to $40,000+/acre in a few years

 

[bimma85 5,000+ posts]

come to waxhaw //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif , property value alone has went from $2000/acre to $40,000+/acre in a few years

sounds like he might be too late. Thinking that way is one of the things that has gotten many people into trouble.

 

[hoss 5,000+ posts]

Sounds you want to speculate instead of invest //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif. Not to say you can't make money either way, just not the same thing imo. Also, there is no guarantee in real estate //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif (especially with everything going on right now).

what exactly do you mean by the first part? about speculate instead of invest? also, about the second part, the uptown area of charlotte is the hottest property anywhere right now, in the past 8 months i have seen properties increase in value by as much as $65k (yes, in 8 months...). and also, no offense, but you arent in charlotte, and you dont know whats going on here... i know most of the us is in the slumps, but not charlotte... charlotte has remained relatively unaffected by the whole situation.

Why do you say this area will be going up? Lot of new expansion? many new jobs being created nearby? etc..

lots of everything. new jobs, new tourist attractions, new light rail system (the biggest factor driving the price increase for that area), not to mention with the mass flood of people moving to charlotte, the uptown area has been in high demand, with mid to high rise properties springing up everywhere. ive been watching the area, and frankly, i missed the time to buy by a little bit, but its not too late to find a property and catch some of the profit //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

Also what do you feel your home is worth and what did you pay?

i paid $144,900, it appraised for more than i paid for it. ive also done upgrades to the house (hardwood floors replaced all of the carpet downstairs, upgraded trim, added lights). not to mention that properties in my neighborhood are selling within 48 hours of the listings hitting the market, and there is a house across the street from me on the market currently for $180k. im going to pull up some more comps for the area, but i definitly think $165k is do-able //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

//content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif It's gonna be hard for most to help. Real estate is local, market activity can vary greatly. Have you talked to any local investors or realtors?

havent taken that step yet. ive just started to get serious about the idea in the past week.

if he sells it super fast, it won't be capital gains...it'll taxed as regular income. Must have owned property for at least 1 year for capital gains.
however, I doubt there will be any profit after closing costs and realtor fees.

so if i sell it in less than one year it will be held as regular tax withholdings? and i would still be able to deduct my current mortgage interest payments from it? if thats the case, then thats a complete wash and works in my favor //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif . they would take the money, but i would get it right back at the end of the year //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

come to waxhaw //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif , property value alone has went from $2000/acre to $40,000+/acre in a few years

waxhaw isnt uptown charlotte //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif .

 

[pitbull12887 10+ year member]

what exactly do you mean by the first part? about speculate instead of invest? also, about the second part, the uptown area of charlotte is the hottest property anywhere right now, in the past 8 months i have seen properties increase in value by as much as $65k (yes, in 8 months...). and also, no offense, but you arent in charlotte, and you dont know whats going on here... i know most of the us is in the slumps, but not charlotte... charlotte has remained relatively unaffected by the whole situation.
lots of everything. new jobs, new tourist attractions, new light rail system (the biggest factor driving the price increase for that area), not to mention with the mass flood of people moving to charlotte, the uptown area has been in high demand, with mid to high rise properties springing up everywhere. ive been watching the area, and frankly, i missed the time to buy by a little bit, but its not too late to find a property and catch some of the profit //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

i paid $144,900, it appraised for more than i paid for it. ive also done upgrades to the house (hardwood floors replaced all of the carpet downstairs, upgraded trim, added lights). not to mention that properties in my neighborhood are selling within 48 hours of the listings hitting the market, and there is a house across the street from me on the market currently for $180k. im going to pull up some more comps for the area, but i definitly think $165k is do-able //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

havent taken that step yet. ive just started to get serious about the idea in the past week.

so if i sell it in less than one year it will be held as regular tax withholdings? and i would still be able to deduct my current mortgage interest payments from it? if thats the case, then thats a complete wash and works in my favor //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif . they would take the money, but i would get it right back at the end of the year //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

waxhaw isnt uptown charlotte //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif .

i know. Its just safer to live in, cheaper, and doesnt have 1/3 of the traffic. //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif lol

 

[hoss 5,000+ posts]

i know. Its just safer to live in, cheaper, and doesnt have 1/3 of the traffic. //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif lol

safer is relative, cheaper because its NOT charlotte (//content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif ), and yeah less trafic, but if i live where i want to live, i will reduce my amount of driving by ALOT.

also, i dont work in waxhaw, and i am trying to move closer to stuff, not further away from it. everyone already knows that outside of charlotte property is cheaper. yet for some reason, everyone still buys in charlotte... ever wonder why? //content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif

waxhaw is a good place, for some people. but it doesnt fit any of my needs. its worth me spending the extra money to buy in charlotte, especially considering that the returns on property in charlotte are going to always be larger than the returns from property in waxhaw.

 

[SilverSquared 10+ year member]

Talk to a Realtor.

 

[pitbull12887 10+ year member]

safer is relative, cheaper because its NOT charlotte (//content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif ), and yeah less trafic, but if i live where i want to live, i will reduce my amount of driving by ALOT.
also, i dont work in waxhaw, and i am trying to move closer to stuff, not further away from it. everyone already knows that outside of charlotte property is cheaper. yet for some reason, everyone still buys in charlotte... ever wonder why? //content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif

waxhaw is a good place, for some people. but it doesnt fit any of my needs. its worth me spending the extra money to buy in charlotte, especially considering that the returns on property in charlotte are going to always be larger than the returns from property in waxhaw.

i hear ya.

 

[bimma85 5,000+ posts]

so if i sell it in less than one year it will be held as regular tax withholdings? and i would still be able to deduct my current mortgage interest payments from it? if thats the case, then thats a complete wash and works in my favor //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif . they would take the money, but i would get it right back at the end of the year //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

If you sold it before you have owned it for 12 months, it will be taxed just like normal. You don't have to have it on the market for a year. Yes you should be able to deduct your mortgage interest/prop taxes.

i paid $144,900, it appraised for more than i paid for it. ive also done upgrades to the house (hardwood floors replaced all of the carpet downstairs, upgraded trim, added lights). not to mention that properties in my neighborhood are selling within 48 hours of the listings hitting the market, and there is a house across the street from me on the market currently for $180k. im going to pull up some more comps for the area, but i definitly think $165k is do-able //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

What do you owe on the property and what all have you put into it in total? What/when was it appraised at? Bank appraisal?

what exactly do you mean by the first part? about speculate instead of invest? also, about the second part, the uptown area of charlotte is the hottest property anywhere right now, in the past 8 months i have seen properties increase in value by as much as $65k (yes, in 8 months...). and also, no offense, but you arent in charlotte, and you dont know whats going on here... i know most of the us is in the slumps, but not charlotte... charlotte has remained relatively unaffected by the whole situation.

Speculate: to engage in any business transaction involving considerable risk or the chance of large gains

IMO, the bold words are what makes the two much different. Now of course the gains could be great, but owning a home that you can not sell(because you paid too much, thinking it was guaranteed to go up) would absolutely ****.

No offense taken at all. If you look at my post you will see where I stated that real estate is a local thing, which is why it will be hard to get help with out talking to locals. All I am saying is that just because price keeping going up, it doesnt mean it can't/won't change.

Look at many places in FL and CA. Look at the people who lost their *****. What they bought was a "guarantee", or at least they thought. //content.invisioncic.com/y282845/emoticons/crying.gif.ec0ebefe590df0251476573bc49e46d8.gif

I'm simply stating there is no guarantee(unless you buy at a big enough discount). I'm not saying that it won't go up, just to do all the necessary homework before jumping in.

Also how do you plan on purchasing your next home? I assume you would like to sell your current home to buy another sell it to make more money and repeat ?

 

[hoss 5,000+ posts]

If you sold it before you have owned it for 12 months, it will be taxed just like normal. You don't have to have it on the market for a year. Yes you should be able to deduct your mortgage interest/prop taxes.


What do you owe on the property and what all have you put into it in total? What/when was it appraised at? Bank appraisal?

thats good to hear about having owned it for 12 months, that means if i sell it in 4 months from now ill be clear of capital gains //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

also, i owe $136k on it, it was appraised by the lending agency prior to my closing on it about 8 months ago. it appraised at $148k (about $3k over what i paid //content.invisioncic.com/y282845/emoticons/cool.gif.3bcaf8f141236c00f8044d07150e34f7.gif)

Speculate: to engage in any business transaction involving considerable risk or the chance of large gainsIMO, the bold words are what makes the two much different. Now of course the gains could be great, but owning a home that you can not sell(because you paid too much, thinking it was guaranteed to go up) would absolutely ****.

No offense taken at all. If you look at my post you will see where I stated that real estate is a local thing, which is why it will be hard to get help with out talking to locals. All I am saying is that just because price keeping going up, it doesnt mean it can't/won't change.

Look at many places in FL and CA. Look at the people who lost their *****. What they bought was a "guarantee", or at least they thought. //content.invisioncic.com/y282845/emoticons/crying.gif.ec0ebefe590df0251476573bc49e46d8.gif

I'm simply stating there is no guarantee(unless you buy at a big enough discount). I'm not saying that it won't go up, just to do all the necessary homework before jumping in.

yeah, alot of those people were lead to believe it would be a guarunteed thing. but alot of those people were very uneducated and mislead about what they were doing. not to say i am any better off than those people, as it is all a risk. but after working in new home construction for the past two years, and studying construction management in college for 4 years before that, ive had my eye on the market more than most have, and keep looking into the future to what could happen because it not only affects my housing, but also my career //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif .

the charlotte area has years of growth left in it. and the downtown area is just in its infant years of development. not to mention, this would be another fairly short term investment for me as i will have the opportunity to build a house myself in the next few years (i would do this now, but i simply dont have the financial security to afford land and construction ATM).

Also how do you plan on purchasing your next home? I assume you would like to sell your current home to buy another sell it to make more money and repeat ?

yes, that is the plan. the condos i am looking at are the same value that i have invested in my house. in other words, im looking to move, put some money in savings, and buy a house that cost the same as what i paid for my current house, and then make money on that house as well. the next house will probably be more of a home than an investment, although, like stated before, since i will be building it myself for cost, i will be selling it for more profit than either my current home or my prospective condo //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[kmanian 5,000+ posts]

I hate to disagree, but you will pay capitol gains, after 1 year you pay a reduced amount and after 2 you pay no CG. As for the market, if you are going to buy, now is a great time, intrest is low, it will be going up because of consumer spending, the fed will try to fight inflation with a hike. You are buying in a bear market (nationally) and you will see greater returns on either house in 12-18 months than you have in the last 12-18. Basically buy low sell high, and things are as low as they are going to get, including your present home.

This is obviously only my opinion, but I do live in the world of construction and housing.

 

[kmanian 5,000+ posts]

Also after commisions, and reductions you will be reolizing a small if any profit.