Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-13-2007, 06:18 PM   #61
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 377
I personally do not consider my home a "asset" due to it being a money drain and all the bills it produces. Maintenance & Upkeep, taxes, utility bills etc etc. Not to mention if you paid for 400,000 over 30 years for a house that cost 200,000. I think the general public think that since that house cost them 200,000 at closing 30 years ago, and they sold it for 300,000 they made a nice proffit. When in reality they lost 100k just off the interest, not counting buying lawn mowers/maintenance etc etc.

I personally consider my home a liability, or maybe a chip to exchange for another chip wherever I want to live.

I am not saying that you cannot make money buying or selling houses or anything like that, as many people have done just that.

I am just saying for the house I live in now, it gives me negative cash flow, and not positive cash flow.

Anyways just my 2 cents.
__________________

__________________
Bigritchie is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-14-2007, 11:30 AM   #62
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
Quote:
Originally Posted by cute fuzzy bunny View Post
...do it and bank your tax free profits.
The fact that CGs can be rolled over into another home is definitely an advantage. Although it also works against owners considering cheaper rental alternatives, especially when it comes time to downsize in retirement.

Avoiding taxes is almost as strong an emotional driver as home ownership. It can drive people to do irrational things.
__________________

__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 06-14-2007, 11:51 AM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
I never thought that making money was irrational.

The CG rollover rules went out the window 10 years ago. Now if you've lived in the home as a primary residence for 2 of the last 5 years to qualify for a tax free gain of up to $500,000.

I could watch my current home double in value, sell it tax free, and go live in a hut. No problems with downsizing under the new tax rules.

If I make more than a half mil in profit selling my primary residence, I'll be pretty frickin pleased to write a little check to the feds
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 06-14-2007, 03:23 PM   #64
Full time employment: Posting here.
Lakedog's Avatar
 
Join Date: May 2007
Posts: 654
Quote:
Originally Posted by cute fuzzy bunny View Post
I never thought that making money was irrational.

The CG rollover rules went out the window 10 years ago. Now if you've lived in the home as a primary residence for 2 of the last 5 years to qualify for a tax free gain of up to $500,000.

I could watch my current home double in value, sell it tax free, and go live in a hut. No problems with downsizing under the new tax rules.

If I make more than a half mil in profit selling my primary residence, I'll be pretty frickin pleased to write a little check to the feds
Makes perfect sense to me -- I always look at a residence this way as well, it can be both a home and an investment. Been in my current lake house almost ten years, paid $150K, currently valued at $600K. I will retire in September and am thinking about selling to relocate (and bank some equity).
__________________

__________________
Lakedog is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Scott Burns burns Home Depot REWahoo Other topics 17 03-06-2007 10:09 PM
Second Home treypar Life after FIRE 56 02-27-2007 05:52 PM
Who uses an investment advisor to help? mickeyd FIRE and Money 8 02-25-2007 07:28 PM
How many of you can RE now, but working because of children at home? yakers FIRE and Money 16 04-18-2006 12:44 PM
What's a fair split for partners in a real estate investment? thefed Other topics 5 04-14-2006 07:07 PM

 

 
All times are GMT -6. The time now is 07:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.