30-year Mortgage Rates highest in 15 months - Page 3

irishgrl · #31 10-30-2005, 08:55 PM

Quote:

Originally Posted by strandinthewind

If you owned a home just about anywhere in the last ten years and flipped it every two years to take advantage of the tax benefits, you would have on average made at least $100,000 tax free and the vast majority muh much more

As for the pay raises, many do get such raises though you do not.

Non-conventional 30 year fixed loans are not for everyone, but they have their benefits for others.

ok, Im not sure I follow you because as I understand it you must invest in something that is more expensive than what you just sold in order to take advantage of capital gains. So, assuming you did sell you place at a profit you are still required to buy something more expensive or you actually end up PAYING taxes. Thus, if you are constantly going up in price tag/mortgage payments, then it appears to me that you will likely bottom out (unless you are one of the lucky ones that get decent cost of living raises)

strandinthewind · #32 10-30-2005, 09:29 PM

Quote:

Originally Posted by irishgrl

ok, Im not sure I follow you because as I understand it you must invest in something that is more expensive than what you just sold in order to take advantage of capital gains. So, assuming you did sell you place at a profit you are still required to buy something more expensive or you actually end up PAYING taxes. Thus, if you are constantly going up in price tag/mortgage payments, then it appears to me that you will likely bottom out (unless you are one of the lucky ones that get decent cost of living raises)

No, there is no req. that you buy a more expensive house than you sold - you get the $250,000 exemption per owner occupant ever two years even if do not buy another house, buy a less expensive house, etc. In fact, if you get a less expensive one in an up and coming era, all the better for you. Trust me, I have done this

Go here http://www.aicpa.org/pubs/jofa/oct2002/foran.htm for an explanation of the tax law.

This is a gift from Congress and I cannot believe it is still there.

macfanken · #33 10-30-2005, 09:34 PM

Quote:

Originally Posted by strandinthewind

If you owned a home just about anywhere in the last ten years and flipped it every two years to take advantage of the tax benefits, you would have on average made at least $100,000 tax free and the vast majority muh much more

As for the pay raises, many do get such raises though you do not.

Non-conventional 30 year fixed loans are not for everyone, but they have their benefits for others.

Tax free? I thought you had to own a home three years before it's tax free... or is it just two now?

strandinthewind · #34 10-30-2005, 09:37 PM

Quote:

Originally Posted by macfanken

Tax free? I thought you had to own a home three years before it's tax free... or is it just two now?

The $250,000 Fed exemption per owner occupant kicks in after two years of owning and occupying - go to that site above and it pretty much spells it out.

macfanken · #35 10-30-2005, 09:40 PM

Quote:

Originally Posted by strandinthewind

The $250,000 Fed exemption per owner occupant kicks in after two years of owning and occupying - go to that site above and it pretty much spells it out.

That's a good deal... i had my house 3 1/2 years before i sold so i wasn't sure. Depositing that fat check was nice... although selling a house can be very expensive.

sparky · #36 10-30-2005, 09:51 PM

Quote:

Originally Posted by macfanken

That's a good deal... i had my house 3 1/2 years before i sold so i wasn't sure. Depositing that fat check was nice... although selling a house can be very expensive.

These days you can get a lot of agents to cut their fees. And there are discount agencies. My ex sold his house himself, with a little advice from an agent friend. All you need is forms, and an escrow company. I guess I say that cause I have done it, but it isn't that hard. And the houses practically sell themselves.

strandinthewind · #37 10-30-2005, 09:59 PM

Quote:

Originally Posted by sparky

These days you can get a lot of agents to cut their fees. And there are discount agencies. My ex sold his house himself, with a little advice from an agent friend. All you need is forms, and an escrow company. I guess I say that cause I have done it, but it isn't that hard. And the houses practically sell themselves.

I agree, esp. if you live in a well travelled area and can put up a FIBO (For Sale by Owner) sign. You run into trouble in a condo in a mid or high rise as those buildings in general do not allow signs. You can also advertise in the paper, but that can easily hit $1,000 in a few weeks. Also, FIBO's tend to be way out of context with the price, but that is another story.

As for closing once you have the final P&S Agreement, the buyer can dump some of their mortgage costs on the seller depending on what was agreed to in the P&S Agreement.

Can you tell I have done this a few times

Sadly, I have never been able to do a FISBO - and thus pay the 7% when selling

gldstwmn · #38 10-30-2005, 11:28 PM

Quote:

Originally Posted by irishgrl

who can do these and is there a fee? I am trying to avoid the high price tag if possible...

Liscensed appraisers. Usually the lender chooses them, though.

gldstwmn · #39 10-30-2005, 11:35 PM

Quote:

Originally Posted by strandinthewind

Sadly, I have never been able to do a FISBO - and thus pay the 7% when selling

FSBO is not always as easy as it sounds. You know how to read and write a contract but just imagine how badly someone could get hosed who doesn't know how to do that.
There's an old saying that you make money when you buy the house, not sell it.

strandinthewind · #40 10-30-2005, 11:39 PM

Quote:

Originally Posted by gldstwmn

FSBO is not always as easy as it sounds. You know how to read and write a contract but just imagine how badly someone could get hosed who doesn't know how to do that.
There's an old saying that you make money when you buy the house, not sell it.

Oh darlin' I have made lots on the purchase owing to a rube or too busy agent. People also do not understand the some lenders allow for greater percentages of closing costs to be assigned to the seller.

DavidMn · #41 10-31-2005, 12:10 AM

I sure wont be owning a home anytime soon

irishgrl · #42 10-31-2005, 07:33 AM

Quote:

Originally Posted by strandinthewind

No, there is no req. that you buy a more expensive house than you sold - you get the $250,000 exemption per owner occupant ever two years even if do not buy another house, buy a less expensive house, etc. In fact, if you get a less expensive one in an up and coming era, all the better for you. Trust me, I have done this

Go here http://www.aicpa.org/pubs/jofa/oct2002/foran.htm for an explanation of the tax law.

This is a gift from Congress and I cannot believe it is still there.

apparently the law changed then (1997?):

Quote:

Unlike under former law, the gain on the sale of a house is now permanently excluded, rather than deferred, and a taxpayer doesn’t have to purchase a replacement home to exclude the gain.

Still, moving every two years sounds like a drag to me....

strandinthewind · #43 10-31-2005, 10:02 AM

Quote:

Originally Posted by irishgrl

. . . Still, moving every two years sounds like a drag to me....

Not with tens of thousands of tax free jack in your pocket and the prospect of making it again in two years and if not,, then stay where you are until you can

Seems like a win win to me

goldie · #44 10-31-2005, 06:53 PM

Quote:

Originally Posted by gldstwmn

FSBO is not always as easy as it sounds. You know how to read and write a contract but just imagine how badly someone could get hosed who doesn't know how to do that.
There's an old saying that you make money when you buy the house, not sell it.

The important thing is to have an attorney.

We bought our house FSBO, but that was because we wanted it so bad, we didn't give them time to list!

HomerMcvie · #45 10-31-2005, 08:27 PM

Quote:

Originally Posted by goldie

The important thing is to have an attorney.

We bought our house FSBO, but that was because we wanted it so bad, we didn't give them time to list!

I bought my house FSBO. I think 7% is ridiculous, especially on higher dollar homes. I also sold my Mom's house by myself, too.