If I sold my house could pocket 750 to 850k tax free.

[englishman]

Hi guys, I owned a house for the last 9 years. Been a pain in the azz, but if I sold it today in the super hot real estate market in this city I honestly would put 750 to 850k in my pocket after I pay the bank back.

I've worked my butt off this last 9 years and wouldn't want to do it again, but if I did sell I could just sleep in, travel, spin plates... go down the gym.. I'd have freedom like I've never had it in my life.

I could keep the house and just rent it out, chances are that one day I might pocket a million..could be even more... but then again? and I'm 54 and I've had friends lately that died from heart attacks etc..

It's a quality problem but I hate making tough decisions. How the hell do you make tough decisions?

 

[Von]

A house will not sell in 1 day... its not stocks..... better start now.

Sleep it, if you are in Florida its the best time for it.... and take a cruise for life

 

[phillies]

Sell it and travel. If you have been this successful financially you can do it again. Sell and it and enjoy your life.

 

[l_e_g_e_n_d]

Lots of missing info:

1. Do you live in a Type "A" neighborhood where property values are likely to increase in the short-term?

2. Is the property a multi-unit? If so, what is your annual net income derived from the property, if any, on the 700-800k of equity?

3. What is your current interest rate, balance, and monthly payment on the mortgage?

4. Do you have an investment purpose for the 700-800k in liquidity, which could exceed any potential appreciation in holding the property?

5. Are you insolvent now, to the extent where you need a cushion, and thus are considering the sale?

6. If the property is a primary residence, you would have to reside elsewhere. What would be the monthly rent at the new location?

Your question is too arbitrary and general to give you an answer absent specific details.

 

[englishman]

Lots of missing info:

1. Do you live in a Type "A" neighborhood where property values are likely to increase in the short-term?

2. Is the property a multi-unit? If so, what is your annual net income derived from the property, if any, on the 700-800k of equity?

3. What is your current interest rate, balance, and monthly payment on the mortgage?

4. Do you have an investment purpose for the 700-800k in liquidity, which could exceed any potential appreciation in holding the property?

5. Are you insolvent now, to the extent where you need a cushion, and thus are considering the sale?

6. If the property is a primary residence, you would have to reside elsewhere. What would be the monthly rent at the new location?

Your question is too arbitrary and general to give you an answer absent specific details.

Thanks Legend.. yes I can see these are the questions I should be asking.

I live in Canada, in a city that has seen huge increases. My city assessment says it went up 225,000 from july 2014 to july 2015 . So the prices are still climbing, but kind of a bit worrying too that maybe there might be a correction, no body knows.

The house is multi unit, BUT I had 3 units in it when it should have been 2 and I recently got busted by the city.
I pay the bills including the mortgage and I end up with a few hundred, depends on the month, but not much.

I can pay the bills and have an option to build a small house at the back of the property.

My thing is though, the house has been a huge pain in the a*s for most the 8 or 9 years I've owned it.
Since the city came around it got more so.

The increases in potential sale price have become so crazy its hard to see it going on that way.
If I got out now I'm thinking I could just rent a place by the beach for 1100 a month, invest the money (something I know little about) and I dont even have to spend the money.
I'd probably just work a bit less for now.

Its the hassle of owning it and renting it out with the added kind of anxiety of wondering if the bubble will burst.

 

[englishman]

A house will not sell in 1 day... its not stocks..... better start now.

Sleep it, if you are in Florida its the best time for it.... and take a cruise for life

strange but true that in this city and real estate market they have multiple offers of hundreds of thousand over the asking price in one weekend, often with no subjects attached.

Thats kind of my fear it that it could be a bit like tech stocks when they took a nose dive and didnt recover

 

[englishman]

Sell it and travel. If you have been this successful financially you can do it again. Sell and it and enjoy your life.

thanks! Im thinking that too. If I sold it and got a check for $800,000 I dont think Id have to work that much.
I'd live frugally and get down the gym and do some travelling in winter and enjoy it!

 

[englishman]

How old are you?

Im 54, for some reason on my profile it says 44... I dont know why as i set it at 54

 

[dasein]

In your shoes, I would sell the house, buy a condo in a less expensive, possibly up and coming area, and invest the difference, spend some, and travel some.

 

[l_e_g_e_n_d]

Here's my take:

I don't know where you live; let's assume USA. In many counties, property values have ascended to historical highs, spawn by the Feds' dropping the fed fund rate to 0%, essentially free money. Many capitalized on this drop and borrowed monies cheaply, creating contrived, exorbitant demand in "A" list neighborhoods, thus driving real-estate up.

Now, the Feds have made it clear that they will continue to raise rates moving forward. Initially, the forecast was 1%--but due to the mini-collapse of the market, projections are closer to .5%--this year. Accordingly, over the next five years--as long as we don't enter another recession (whereas rates will halt or drop)--rates will increase to 2005-2008 levels @ 6-7% residential mortgage, 30-year fixed. As mortgages become expensive, demand drops, and we will enter a real-estate retraction. When this will occur depends on how quickly rates increase.

You are approaching or are at the top of the ceiling of the real-estate curve. My recommendation is if your property has already appreciated significantly in the last 2-3 years, sell.

The only caveat to hold would be conditioned upon your mortgage being paid in full in a few years, whereas you can use the extra cash-flow as supplemental or retirement income. Otherwise, prudent to sell as we approach, or are at, the ceiling.

 

[Von]

Oh you are in Vancouver or Ottawa ? Better sell it now.... the market will crash soon

 

[l_e_g_e_n_d]

I would take 1 years' salary and put it into a checking account.

I'd take 500k and open a fixed index annuity with an A rated insurance company. Work with an independent financial advisor. Know exactly how much you'll have when you decide to draw from it 10 or 15 years down the road. This is your "paycheck for life."

The remainder I would use to put down on a modest house, travel, etc.

Some A+ rated annuities are speculative. Investment advisors, on average, underperform the market, as churning positions generates more revenue than holding.

OP, always read the prospectuses if you elect to jump into any vehicle. Indices or Big Board stocks with 3%+ annual dividends, market caps over 100 billion are more conservative, lucrative, long-term plays. Else OP can be aggressive and seek short sales (real estate), at 20-40% discount of market value. Many plays, but to any which involve "money manager" oversight, I advice caution.

 

[yuppee]

I'd get out, fast. Put that money into something with a constant income stream, something that's safe in a depression, cause we've got one coming, without a doubt.

 

[Von]

Constant income stream at current interest level is a fool game.... put in mutual funds or ETF and cash in the returns only....

I am a Canadian financial planner.... that's what I recommend.... cause a ''pension or constant income stream through a insurance policy.... will give you 1% a year on your capital' due to low interest. So max your TFSA, see if RRSP are advantagous, buy a affordable house or rent..... invest your capital with a 5% average return goal

 

[yuppee]

you obviously don't know how to arrange a proper income stream. I average 20%, clear, with VA housing loans, weekly room rental.