GoodSense
Full time employment: Posting here.
- Joined
- Jul 2, 2007
- Messages
- 678
DH and I own a rental property that was our first house. We moved in to our current home in fall of 2006. Because the market was already slowing, we decided to not sell the old house at that time and rented it out. (In retrospect that was not such a good decision)
Our renters have been wonderful, but their lease will be up at the end of May, and we'll need to either keep renting it out or selling it. I am on the fence as to what we should do.
Pros of selling:
1. No more being a landlord (neither of us is handy);
2. No capital gains tax because it's still within 3 years of us moving out;
3. Price could keep falling (my biggest concern)
Cons of selling:
1. Price will be REALLY low (I think it's dropped a good 20% in the last 2 years) -- not bringing in as much as I'd hoped, but we won't lose money hopefully. I am a licensed realtor so I watch the market all the time. But when it's your own house it's hard to be objective.
The housing market does not really look good, and the number of foreclosures seems to indicate it will take more than a year for it to recover, so if we don't sell now we're definitely going to owe capital gains tax.
BTW, our old home is too small for us now, so we won't move back in for 2 years just to eliminate the capital gains tax liability.
Any thoughts or suggestions are welcome, especially your views on where the real estate market is going. Thanks.
Our renters have been wonderful, but their lease will be up at the end of May, and we'll need to either keep renting it out or selling it. I am on the fence as to what we should do.
Pros of selling:
1. No more being a landlord (neither of us is handy);
2. No capital gains tax because it's still within 3 years of us moving out;
3. Price could keep falling (my biggest concern)
Cons of selling:
1. Price will be REALLY low (I think it's dropped a good 20% in the last 2 years) -- not bringing in as much as I'd hoped, but we won't lose money hopefully. I am a licensed realtor so I watch the market all the time. But when it's your own house it's hard to be objective.
The housing market does not really look good, and the number of foreclosures seems to indicate it will take more than a year for it to recover, so if we don't sell now we're definitely going to owe capital gains tax.
BTW, our old home is too small for us now, so we won't move back in for 2 years just to eliminate the capital gains tax liability.
Any thoughts or suggestions are welcome, especially your views on where the real estate market is going. Thanks.