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0 pointsJohnny5559y ago0 comments

Of course, I lose around 8 - 10% of the home selling price to selling expenses, and pay 20% capital gains taxes on the profit, so that 50% gain is not as large as it sounds.

And sure, I could quit my job, sell the house, do a 1031 exchange and buy in a cheaper area to reduce the tax burden, but purposely quitting my well paying job and moving to somewhere that jobs are less plentiful sounds like a bad idea if I'm worried that we're facing a recession. Not to mention how disruptive it is to my family: "Hey honey, we're both going to quit our jobs and move the kids to a new school because the bubble might be bursting".

Recommending that people homes now and move out just sounds like trying to time the market, and may not leave them any better off. Silicon Valley still still have a lot of jobs even after an economic downturn, some small town here homes are cheap may not.

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jonknee9y ago

> Of course, I lose around 8 - 10% of the home selling price to selling expenses, and pay 20% capital gains taxes on the profit, so that 50% gain is not as large as it sounds.

Put it up for more than you think it's worth yourself (no agent) and see what happens, maybe you'll get lucky! As for the cap gains, that's the best part of a house:

https://www.irs.gov/taxtopics/tc701.html

> If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse.

It's a really good deal. You can even hedge and buy S&P index shares (SPY) with the proceeds of your house. If you're wrong and things continue going great you'll make a killing on the stock. If not it's a lot easier to get out of than the house!

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