Relocating when you own your own house

[Poety]

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😕 Hi Everyone,

I have a question for those of you who may own your own home already. If you have or plan on moving to a new state, and you are using your down payment from the sale of the house - how are you accomplishing this in one transaction?

If I get in down south, I will have to sell this house, but I want to use majority of my gains to put down on a new house - do you konw of any banks that allow you to do this even if you end up selling after you buy?

Did you rent first? What about animals? Any input would be great thanks!

 

[InternalWhizzzz]

😕 Hi Everyone,

I have a question for those of you who may own your own home already. If you have or plan on moving to a new state, and you are using your down payment from the sale of the house - how are you accomplishing this in one transaction?

If I get in down south, I will have to sell this house, but I want to use majority of my gains to put down on a new house - do you konw of any banks that allow you to do this even if you end up selling after you buy?

Did you rent first? What about animals? Any input would be great thanks!

when you sell your house, you have up to 45 days to "reinvest" the profit and the money into another investment, piece of real estate.

From what I understand, if it passes the 45 day mark, then you will be hit with a 30% capital gains tax, if you own the property for less than 2 years, and 15% capital gains tax, if you owned the property for more than 2 years..

1) you can always hire a property manager, to take care of the property and find tenants, the only thing is, you would have to pay him 10% of your property for managing it...

2) if you are going to buy another property, make sure you have a place in mind. When you are ready to purchase it, and have made the initial offer, put your place on the market, and you can hopefully timing this, with escrow and everything else so that ALL your profits go into your new property..

3) it's a good idea to always put down 20 to 25% downpayment, and have some cash on the side just for a rainy day...but remembre, any profit that you have, that is not reinvested will get taxed...

my advice is talk to a real estate agent, and also someone at H&R block...get all the details...remember, timing is also key..I dont know where you own the property...and how hot the market is over there...if you have a property in New York or Cali, it will be sold in a month or so depending...other places might be on the market for more than 3 months...

you could always place your property on the market, and when you get a serious offer start looking for a new place in your new location so that you could time the sell off of one property to be "reinvested" in your new one...

 

[Poety]

when you sell your house, you have up to 45 days to "reinvest" the profit and the money into another investment, piece of real estate.

From what I understand, if it passes the 45 day mark, then you will be hit with a 30% capital gains tax, if you own the property for less than 2 years, and 15% capital gains tax, if you owned the property for more than 2 years..

1) you can always hire a property manager, to take care of the property and find tenants, the only thing is, you would have to pay him 10% of your property for managing it...

2) if you are going to buy another property, make sure you have a place in mind. When you are ready to purchase it, and have made the initial offer, put your place on the market, and you can hopefully timing this, with escrow and everything else so that ALL your profits go into your new property..

3) it's a good idea to always put down 20 to 25% downpayment, and have some cash on the side just for a rainy day...but remembre, any profit that you have, that is not reinvested will get taxed...

my advice is talk to a real estate agent, and also someone at H&R block...get all the details...remember, timing is also key..I dont know where you own the property...and how hot the market is over there...if you have a property in New York or Cali, it will be sold in a month or so depending...other places might be on the market for more than 3 months...

you could always place your property on the market, and when you get a serious offer start looking for a new place in your new location so that you could time the sell off of one property to be "reinvested" in your new one...

thanks internal - i intend on using my profits from this house for downpayment on the next, someone reminded me of the bridging loan option so perhaps I will go that route. as of now - i have to get in somewhere but I just want to be prepared in my head about the avenues I can take if I do have to relocate 🙂

thanks for your informative post!

 

[InternalWhizzzz]

thanks internal - i intend on using my profits from this house for downpayment on the next, someone reminded me of the bridging loan option so perhaps I will go that route. as of now - i have to get in somewhere but I just want to be prepared in my head about the avenues I can take if I do have to relocate 🙂

thanks for your informative post!

I don't think I helped much, but you are welcome...you know there are real estate forums as well mortgage forums as well. Try googling them, I came across one long time ago...you get professionals in that field giving you advice, which is more rock solid than coming to med students, who horribly in debt, and can barely afford a car much less a house. I would think the real estate forums would be more helpful.