We bought our home last summer and are about to put our house back on the market - due to the fact interest rates are so low - when we bought our home we figured we'd stay about 5 years. However, maybe in 5 years the interest rates will be back to 8% and we won't be able to afford the home we want. I was just curious have prices increased in the past year? I started looking in 2001 and bought in 2002 and in that time they went up 100,000 - for anyone looking now is the market still the same? I am selling in RVC and looking to buy in the same area - Just wondering - anyone out there looking what is it like? I used to read the real estate section every Friday - I have to get back into it... any info. or input would be appreciated. Thanks
jennyg
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Re: What is the housing market like?
The prices are still very high (we just bought in Nassau County). I'm a little confused though...why wouldn't you just refinance your current mortgage to bring your monthly payments down and then in five years, when the market should have re-adjusted, look for a new place? Seems like even if you can sell for high right now you'd still be buying high. JMO though.
bride082003
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Re: What is the housing market like?
be sure to look into capital gains before you sell. I believe the law states any profit you make over what paid for it gets taxed if you sell before 2 years of living there.
Karen H
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Re: What is the housing market like?
Don't capitol gains taxes only count if you retain the cash? I thought that as long as it's from your primary residence and is rolled into another primary residence, there is no CG tax.
bride082003
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Re: What is the housing market like?
thats what i thought but someone told me no, you still have to pay taxes on it. I dont know
DOES ANYONE have the scoop on capital gains?
shelzyp
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Re: What is the housing market like?
If it is your primary residence and you sell there is a 250,000 exclusion amount that you won't get taxed on. SO if you buy for 100,000 and sell for 300,000 there will be a gain of 200,000 but no tax.
shelzyp
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Re: What is the housing market like?
you have to live in the home for 2 out of the previous five years to be able to claim the exclusion.
Married couples can exclude up to 500,00 as long as they file a joint return.
bride082003
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Re: What is the housing market like?
so can you sell in less than 2 years to move into a bigger house? (w/o being taxed on your gains?? -- we would reinvest the money back into our next house))
