Did you sell primary home after purchasing new one?

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dmdmphg

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dmdmphg
Jan 25 22 Comments

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

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TOP 22 Comments
  • Credit Karma
    blah 😕

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    BIO
    Bbbb
    blah 😕
    Keep it for long term rental income and appreciation
    Jan 25 4
  • Lyft
    upxm26

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    upxm26
    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
    Jan 25 4
    • Lyft
      upxm26

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      upxm26
      My bad!!! They will still have enough cash to hold on to both properties if they want considering that they bought their first one at lower price

      I was thinking that it's not even an option to hold on to both
      Jan 25
    • NetSuite / Project
      John Birch

      Go to company page NetSuite Project

      John Birch
      I bought a home for cash before the pandemic. Primary home was already paid for. Waited 2 years to sell. New home is up over 500K. The gain on the one I sold is 1.1M.

      I now have twice as much house with money for my investments

      Since I am over 55, I used Prop 19 to get my new home property tax cut in half, by setting it to the 2004 baseline of my old home.. home run!
      Jan 25
  • Apple
    Tim100MTC

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    Tim100MTC
    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
    Jan 26 0
  • Lyft
    upxm26

    Go to company page Lyft

    upxm26
    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.
    Jan 25 0
  • PayPal
    hhhhhhhqq

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    hhhhhhhqq
    No markets you will get the best of appreciation and rent hikes except in California and New York.
    Jan 25 7
    • PayPal
      hhhhhhhqq

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      hhhhhhhqq
      Rentals usually compromise more of condos and apts than SFH specially in big cities in CA, NY because of high density of population and limited space to build SFH. Hence, the rentals for condos/apts have continuously increased keeping up steadily at ~ 8-10% pa.
      Jan 25
    • PayPal
      dmdmphg

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      dmdmphg
      OP
      Well the question here is about primary homes which are SFH
      Jan 25