Posted: 8/1/2005 12:21:22 PM EDT
|
Ok guys, I know you're not the end all source of information but your opinions and such are pretty informative. So here's my question. I'm renting a nice house right now, the landlord is going through a divorce and would like to sell the house. She has $50k in equity wrapped up in it that she wants out of it in cash immediately. I would like to buy the house if she gives me a decent price ($250k would be a bargain) The other houses in the neighborhood have been selling at around $275k. Now if I could get into the house for $250k and keep it for a year, do you think that is too much of a risk. I'm hoping to make around 35K when I sell it. What are your thoughts? |
|
I believe to avoid the capital gains taxes(unless it is put into a more expensive house) , you have to live in the house for 2 years. Then no tax is paid unless over $250,000 in profit. I bought my house in 1995 for 100,000 (year it was built for me) and it is now valued at $200,000 plus. The majority of that increase is in the last 2 years. Houses where I live in Tucson (Rita Ranch) do not stay on the market for more that 2 weeks and sell above asking price. Too bad I didn't buy the house next to me (identical) that went to the bank after the neighbor lost his job and then died of a heart attack. It set empty for a year for some reason and someone got into it and vandalized it. It went for $10,000 under market even though the bank had it repaired and is now worth $70,000 more then the two ladies who live there bought it for (about two years time). Some houses in the Vail area that have been recently built (last 2 years) have gone up $100,000+ in the time they were built. |
