I bought a big ass house a year ago and have equity in the house now. I feel I’m wasting so much money on a big crib and want to downsize to a smaller house or rent an apartment. I’m worried selling after only a year would I owe a lot in capital gains tax? Equity is $150,000 gained. Mortgage is $1991 interest rate 6.5%.
Only a 2k mortgage? Lol
Midwest?
Stay 2 years so you can be tax free over the next years if you sell or do 1031 exchange.
How big is the house? How many bedrooms and bathrooms? If you were to rent it how much would rent would you get ? How much did you buy it for vs what is it worth now? Your mortgage is under 2k with 6.5%? What makes you think you are wasting money?
1991 ? I want to live wherever you are if you get a big ass house at amount..
Phoenix
Wow! Reminder I pay more than that in just property tax.. for 1800 sqft. We need equilibrium..
RE tax is just 25% after one year. So, if you are worried, sell it.
How big is this “big ass” house of yours (sqft)? And then comparatively, how big of a house and or apartment would you prefer to be living in? If you went to rent an apartment instead, realistically how much would you be spending on rent each month? If you were to rent your house out instead of selling it, what could you expect to be able to rent it out for? More than your monthly mortgage? If so, why not just rent it out to cover your mortgage while continuing to build equity from their rent payments, and then you just go and rent a smaller apartment wherever you want.
Why would you owe a lot in capital gains, do you expect to sell it for a lot more? If so, stay another year to get $250k tax free. You will need to pay RE agent commissions too.
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You mean wasting by paying the mortgage?