Home owners who recently bought 2nd home in Bay Area, did you sell the previous home? If no, why not taking advantage of no tax on $500k profit rule? Please mention the reason in comments. Edit: those who have answered “no”, how is renting working considering rent to property value gap is huge? (Even if you are cash flow is positive since you bought long time ago) #housing #mortgage #sanfrancisco
I don't know how many ppl were able to buy another home despite having one already 🤣 If prices have appreciated for the old house, they would have spent a bomb on new one anyway
How much they spent on new one is not the question. What and why they chose to do with the old one.
Plenty. It’s not hard when one buys below one’s means, even in the Bay Area.
What’s the 500k profits no tax rule ?
https://www.ftb.ca.gov/file/personal/income-types/income-from-the-sale-of-your-home.html
This 500k capital gains is even more important as Biden is proposing to impose 40% capital gains tax in future. If your salary is 500k which many are reporting nowadays... And if you have gained 1M in home equity, you will start falling in 40% tax bracket. With ever increasing salaries, most FAANG engineers might find themselves in that tax bracket in near future. Equation is, either don't sell the property ever or sell it now.
No markets you will get the best of appreciation and rent hikes except in California and New York.
I guess so 🤷♂️
Appreciation may be… rents definitely not
There’s a big difference in answer for people who bought in last year vs those who bought 5-10 years ago. It’s impossible to get any cash flow rental with the price people are paying this year
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Keep it for long term rental income and appreciation
If you sell and buy rentals somewhere else with the gains, you will get much more monthly rental income, why not do that?
Debating the same right now. Mine went up $200k in the past year and a half but we didn’t live long enough to take advantage of the 2/5 tax exemption