golftrek
Recycles dryer sheets
My husband and I have been retired for over 12 years. We retired at age 50 and have lived very comfortably. One thing we have done to increase our assets both before and after retirement is to "flip" our primary residences. Under the tax rules, a couple can sell their primary residence tax free every 2 years (up to a maximum of $500,000 in gains, $250,000 for a single person).
This is how we do it:
We find a run down house in a good neighborhood and buy it for the lowest price we can negotiate. (We have been able to buy the last few houses for cash.) We try to find houses that are in good structural shape but mainly need cosmetic work, yard work and redecorating. We move into the house and while we are living in the house we fix it up. In order for this to work, we have to live in the house while it is being fixed up, which is a downside but we can live with it. We are handy and can do a lot of the work ourselves.
We try to have all the work finished in a 2 year period. After the work is complete, we sell the house (usually at a nice profit). We pay no taxes, no FICA, no social security on the gains. Then we move onto the next house.
Over the years, we have flipped 6 houses and have cleared over $400,000 in tax free profits. Of course, it was easier to do this pre-2008. We did have to stay in the house we were in in 2008 an extra couple of years in order to be able to sell it at a profit. HOWEVER, we just flipped our most successful house.
We bought a run down foreclosure in a very nice neighborhood in 2010. We moved in in 2010 and brought the house up to the standard of the neighborhood. This past summer we sold the house and cleared over $100,000 in profits. The house went under contract 2 weeks after we listed it.
Before 2008, we were able to sell the houses without a real estate agent (and save the real estate commission). We have used a real estate agent for the 2 houses we have sold since 2008, but we carefully chose the agents and we believe that each agent earned their commissions.
The way we live (living in a house during construction and moving every few years) is not for everyone, but it allowed us to retire at age 50 and live comfortably without touching our other assets. In addition, WE HAVE PAID NO INCOME TAXES in 13 years!
Jo Ann
This is how we do it:
We find a run down house in a good neighborhood and buy it for the lowest price we can negotiate. (We have been able to buy the last few houses for cash.) We try to find houses that are in good structural shape but mainly need cosmetic work, yard work and redecorating. We move into the house and while we are living in the house we fix it up. In order for this to work, we have to live in the house while it is being fixed up, which is a downside but we can live with it. We are handy and can do a lot of the work ourselves.
We try to have all the work finished in a 2 year period. After the work is complete, we sell the house (usually at a nice profit). We pay no taxes, no FICA, no social security on the gains. Then we move onto the next house.
Over the years, we have flipped 6 houses and have cleared over $400,000 in tax free profits. Of course, it was easier to do this pre-2008. We did have to stay in the house we were in in 2008 an extra couple of years in order to be able to sell it at a profit. HOWEVER, we just flipped our most successful house.
We bought a run down foreclosure in a very nice neighborhood in 2010. We moved in in 2010 and brought the house up to the standard of the neighborhood. This past summer we sold the house and cleared over $100,000 in profits. The house went under contract 2 weeks after we listed it.
Before 2008, we were able to sell the houses without a real estate agent (and save the real estate commission). We have used a real estate agent for the 2 houses we have sold since 2008, but we carefully chose the agents and we believe that each agent earned their commissions.
The way we live (living in a house during construction and moving every few years) is not for everyone, but it allowed us to retire at age 50 and live comfortably without touching our other assets. In addition, WE HAVE PAID NO INCOME TAXES in 13 years!
Jo Ann