what is the lowest cost way to get into a house ?

[zuki]

i mean to buy it in the interest of reselling it in a few months.

it is a very expensive home.

500,000.00

but is lower than the same model in the area

do home prices go up in summer?

or are interest rates getting ready to do something bad ?

what advice comes to mind ?

thanks

 

[azanon]

Re: what is the lowest cost way to get into a hous

Generally speaking, its a bad idea to buy a personal residence if you're not going to keep it for at least 2-3 years. That is unless you consider yourself a real estate expert that buys and sells houses for a profit.

 

[P.S.]

Re: what is the lowest cost way to get into a hous

Zuki,

This is absolutely not meant with any offense, but with all sincerity, if you're asking for advice for this one, maybe you shouldn't do it.

What you want to do depends on so many local factors. But if you really want advice, mine would be do it in cash and without an agent.

 

[zuki]

Re: what is the lowest cost way to get into a hous

okay , but how is that done ?

pay the minimum down and list it for sale as soon as you buy it ?

just asking how it is done is .

thanks

 

[JOhn Galt]

Re: what is the lowest cost way to get into a hous

Find a "fixer-upper" owned by a "don't wanter".
Get the seller to finance it and waive any payments for a
year. For your down payment, give the seller something you own but don't want/use anymore
(Cars, boats, tools, use your imagination). Use the year
with no payments to improve the property and then sell
it for a profit or live in it. These deals are done every day. You don't need any money, just brainpower.

JG

 

[lets-retire]

Re: what is the lowest cost way to get into a hous

I would have to agree with P.S. if you have to ask you probably shouldn't do it. As with all investments expect to lose some of your money. Real estate is typically a good investment for the long term, 1-2 years is on the very short side. To buy a property for a couple of months then sell it a couple things need to happen--it needs to be a REAL good deal, and you need to be in a super hot real estate market. This is just my opinion though.

To answer your question though there are programs through banks where as long as you put down 3% your good. That 3% can include the closing costs.

 

[zuki]

Re: what is the lowest cost way to get into a hous

the house is not a fixxer upper.

the people are divorcing and the sign is going in the yard soon.

.i heard them talking is why.

house is listed for 540,000

and they told agent the first 500, they get they are taking.

so i thought i would offer 450,000

 

[azanon]

Re: what is the lowest cost way to get into a hous

There are all kinds of checks and balances for house apprasing, and for a house that expensive, you can rest assured it will be appropriately priced. Whatever you buy it for, at best, will be what its worth. At worst, they'll make a little profit.

 

[John Galt]

Re: what is the lowest cost way to get into a hous

Offer 425K , cash..................

JG

 

[haha]

Re: what is the lowest cost way to get into a hous

I would say the lowest cost way to get into this, or any house, would be through an unlocked door.

If that doesn't work, a patio entry door is often very low cost.

Best if this house is in Baltimore, where nobody with a $500,000 house will have a gun.

Mikey

 

[zuki]

Re: what is the lowest cost way to get into a hous

wow i expect most reale state agents to offer very negativ replies.

how does a person say they live in a home for 2 years to avoid the capital gains ?

have their mail sent there ?

looking for help serious help.

looking for how things are done in the real world.

not the rules.

not smart alec replies.

thank you

 

[P.S.]

Re: what is the lowest cost way to get into a hous

wow i expect most reale state agents to offer very negativ replies.

 how does a person say they live in a home for 2 years to avoid  the capital gains ?

 have their mail sent there ?

 looking for help serious help.

looking for how things are done in the real world.

not the rules.

not smart alec replies.

 thank you

Let me understand this properly...

The median/average/mean American income is <$50k/y.

You are thinking of buying a house listed for $540,000.

You are seeking serious advice from faceless persons writing under pseudonyms, nicknames, or initials (excl Mr. Galt).

The advice you seek should ideally follow "not the rules."

Zuki, I think you have been given serious advice , and if you're displeased with what's been dispensed thus far, maybe you might consider a source whose reputation, livelihood, and licensure depend on what they advise.

 

[azanon]

Re: what is the lowest cost way to get into a hous

wow i expect most reale state agents to offer very negativ replies.

 how does a person say they live in a home for 2 years to avoid  the capital gains ?

 have their mail sent there ?

 looking for help serious help.

looking for how things are done in the real world.

not the rules.

not smart alec replies.

 thank you

You want serious advise on how to cheat the IRS?  If you own the house for less than 2 years, and you sell it for a profit, you owe capital gains.  If you dont pay it, you're cheating all of us.

I gave you serious advise.  Unless you're a real estate expert, dont buy a house if you're only going to live there a few months.

 

[xprinter]

Re: what is the lowest cost way to get into a hous

Hey Mickey my house is valued around 500k and we have several guns.


Maybe were an anomoly in Baltimore

 

[Spanky]

Re: what is the lowest cost way to get into a hous

You may not have to pay capital gains based on the following article:

++++++++++++++++++++++++++++++++++++++++++
Virtually all homeowners, if they decide to sell, have the very profitable situation of being able to walk away with up to $250,000 (up to $500,000 for a qualified married couple) tax-free principal residence sale capital gain profits.

The simple qualification tax rules. To qualify for Uncle Sam's generous principal residence sale tax exemption rules, Internal Revenue Code 121 requires the home to have been owned and occupied by the seller(s) at least an "aggregate" 24 of the 60 months before the sale.

There is no limit to the number of uses of the IRC 121 exemption. However, it cannot be used more frequently than every 24 months (with limited exceptions for partial exemptions explained below).

The occupancy time need not be continuous. For example, if you occupied your home for 12 months after its purchase and then you rented it for two years before moving back in a year ago, you meet the two out of last five years occupancy test. If just one spouse meets the test, then only a $250,000 exemption is available.

 

[Spanky]

Re: what is the lowest cost way to get into a hous

Offer 425K , cash..................

JG

I am not sure that he/she has the cash since he/she is asking for the minimum cost.

 

[Patrick]

Re: what is the lowest cost way to get into a hous

i mean to buy it in the interest of reselling it in a few months.

 it is a very expensive home.

500,000.00

but is lower than the same model in the area

do home prices go up in summer?

or are interest rates getting ready to do something bad ?

 what advice comes to mind ?

thanks

Try an interest-only loan with minimum down payment. In my area prices typically do go up in the spring and summer months, then level off in the fall and winter. Many people I know have gotten great deals in divorce sales. Usually you can't get the same price on a resale home that the new ones are going for, unless it has lots of upgrades in it, so be careful about that. Good luck.

 

[vicky]

Re: what is the lowest cost way to get into a hous

And how are you going to sell it?

Most likely you will list it with an agent. They charge 3% and you will have to pay the buyer's agent 3%. That is around 30K of your profit. Even if you do FSBO you will probably have to pay the buyer's agent. If you take a mortgage, you will have pay thousands extra in closing costs.

Have you looked at how much it will cost you to keep the year on the market if you don't sell quickly? Insurance, mortgage, utilities, tax etc. all adds up and may wipe out most or all of your gains. Whatever is left over will be subject to a short term capital gains tax. May not be worth the hassle. Why not experiment with something cheaper to start with?

Vicky