Feb
27
net worth is 1.1million including the prim.residence, and don’t need a big house, should I sell it or rent out
By
Value of assets are 2/3 residence, and 1/3 securities. Earned Income is approx 30k per year. House needs minor interior work, i.e. paint, and deep cleaning to move to rent or sell in a short time. Property tax on house is approx .2% of value, so low tax basis. My goal is to build wealth slowly, and not tap into the principal too much.
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3 Comments
March 1st, 2010 at 2:35 am
This answer is got to come with more questions. Size of the house? As well as is it apartment complex. Is there oportunity to make it more? Does the area support the house you live in? Saying you want to build wealth slowly means your in it for the long haul so It could be to your benefit to rent it out and use the assets to further buy more assets. That becomes the typical cash crop today. Realistate will always be here. The population is not decreasing!
March 1st, 2010 at 6:09 am
I would rent it out to someone who can do the minor maintnance. If you want to build wealth slowly, that would help in that aspect. You could then decide to sell it at a later date. You may find that one day you do need a big house, and may want to move back in. I vote for rent!
March 3rd, 2010 at 4:30 am
age? if you want to build a real estate portfolio, then buying single family hoses is a way to go.
The greatest, yes I said greatest, tax break available today is to sell your principle residence and keep the profits tax free every two years. If you are the fix it up kind of person with time to spend you can do that over and over again.
You have to buy under priced houses that need work, do most of the work yourself then sell and move. Keep out some of the cash to invest or as a backup fund.
The other way is to buy and let somebody pay the mortgage.
Talk to a tax man first. what you propose is converting a residence into a rental. you can still do that if you rent it for less than 3 years and sell it as a princ. res. for 2 of 5 years.
Then you still get to keep the capital gain, tax free.