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Old 07-19-2021, 10:11 AM   #1
Katsaregood
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Default Thankful for the current real estate trend

Had been holding off on selling multiple properties until recently. The value of just the land alone in some areas is amazing. With increased development and skyrocketing taxes, it’s an easy decision to sell and move on.
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Old 07-19-2021, 10:23 AM   #2
rvd
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Congrats! My concern is what am I going to move on to, feel like I'm too young to just take the cash and the hit.
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Old 07-19-2021, 10:30 AM   #3
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It is very good. We have 5 closings scheduled this month.

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Old 07-19-2021, 10:39 AM   #4
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Seems like a wash for someone just wanting to upgrade homes huh? If I make a large amount selling my home won't I just pay out the roof for my next home and lose all the profits anyway?
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Old 07-19-2021, 10:42 AM   #5
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Seems like a wash for someone just wanting to upgrade homes huh? If I make a large amount selling my home won't I just pay out the roof for my next home and lose all the profits anyway?
Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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Old 07-19-2021, 10:43 AM   #6
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Yep. It will be very good for us. We were already planning on it, but we will be selling our home next April. I think next Spring is going to be the peak of the crazy values before it starts settling down.
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Old 07-19-2021, 10:46 AM   #7
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Seems like a wash for someone just wanting to upgrade homes huh? If I make a large amount selling my home won't I just pay out the roof for my next home and lose all the profits anyway?
Selling investment properties is one thing, but you are right. Looking at how much your house is potentially worth feels good but if you sell, then what? If you happen to be at a point in your life where you are ready to dramatically downsize it would make some sense.
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Old 07-19-2021, 10:47 AM   #8
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Good luck on the sale! You going to take the cash and run or buy another property to avoid the taxes?
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Old 07-19-2021, 10:57 AM   #9
Katsaregood
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Good luck on the sale! You going to take the cash and run or buy another property to avoid the taxes?
Thank you. Not in any hurry to buy something more expensive. I needed to get out from under all the taxes.

Something similar happened to a friend. He had planned on holding onto a nice piece of property to retire on but then development moved in and multi million dollar homes started being built up close. And then a substantial number of cookie cutter houses went up on the other borders. His taxes climbed so high that he knew it wasn’t worth owning anymore. He downsized and sold off most everything.
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Old 07-19-2021, 11:00 AM   #10
ladrones
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The covid eviction moratorium is coming to an end on the 31st of this month here. I want to see how that plays out.
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Old 07-19-2021, 11:02 AM   #11
BrianL
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Good luck on the sale! You going to take the cash and run or buy another property to avoid the taxes?
That's the great thing about selling your home after 2 years is the profit is TAX FREE up to $250K if single or $500K if married.
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Old 07-19-2021, 11:13 AM   #12
Chad C
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Seems like a wash for someone just wanting to upgrade homes huh? If I make a large amount selling my home won't I just pay out the roof for my next home and lose all the profits anyway?
Great time to sale investment properties or possibly downsize. Not primary to upgrade.
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Old 07-19-2021, 12:21 PM   #13
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Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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But at todays market prices that Ford Pinto you apply named is now the corvette and the corvette is now a Maserati. Your chances of coming out ahead are pretty slim!!!!!
You sell high in this market you also pay high in this market.
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Old 07-19-2021, 12:35 PM   #14
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I'm hoping that it cools soon. Property valuations are up which is very tempting to the taxing entities. I can't think of any winners in a situation like this. It's not that the properties are bringing more, it is that it takes more of this funny money to buy them.
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Old 07-19-2021, 12:44 PM   #15
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I agree if you are wanting to sell off rental investments, it is a good time to do it. I bought at the start of this craziness in market values
I’m finding that long term rentals are not too bad given the current market as there is a surplus of renters because they are unable to compete in the current market trend on home values
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Old 07-19-2021, 12:46 PM   #16
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The covid eviction moratorium is coming to an end on the 31st of this month here. I want to see how that plays out.
Probably gonna still take 6 months to get them out.
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Old 07-19-2021, 12:49 PM   #17
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But at todays market prices that Ford Pinto you apply named is now the corvette and the corvette is now a Maserati. Your chances of coming out ahead are pretty slim!!!!!
You sell high in this market you also pay high in this market.
Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....
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Old 07-19-2021, 12:55 PM   #18
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Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....
That’s why I’m not buying again during this trend. My taxes have increased so rapidly and the land value has gone way way up. The taxes doubled and more tax increases are coming next year. There’s no benefit to remain and with development moving in it’s time to go. There are no mortgages or loans tied to anything.

Last edited by Katsaregood; 07-19-2021 at 01:08 PM.
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Old 07-19-2021, 01:14 PM   #19
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Originally Posted by Sackett View Post
Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....
I keep toying with the idea of ducking into a rental and waiting it out then buying low after the crash. Problem is will it be 2 years or 20 years?
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Old 07-19-2021, 01:18 PM   #20
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Originally Posted by DFWPI View Post
Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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Depends on the Pinto.. If said pinto had a 454 Big Block chevy. I'd keep the pinto. Lol.

I'm stealing your line btw
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Old 07-19-2021, 01:23 PM   #21
DFWPI
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Depends on the Pinto.. If said pinto had a 454 Big Block chevy. I'd keep the pinto. Lol.



I'm stealing your line btw
Well, that's a good deal.

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Old 07-19-2021, 01:25 PM   #22
ladrones
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Probably gonna still take 6 months to get them out.
The slow walk.
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Old 07-19-2021, 01:29 PM   #23
jerp
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I keep toying with the idea of ducking into a rental and waiting it out then buying low after the crash. Problem is will it be 2 years or 20 years?
That's the question. It took just a few years to bounce back from the drop in 08'- 09' (at least in Texas) However some around here are old enough to remember the real estate crash of the 1980's. Peaking in 1978, home sales plummeted by 50% over the next four years and didn't get back to that 1978 level for almost 20 years. It was especially bad in Texas and Oklahoma because it was exacerbated by a collapse in the oil patch. If you bought a house in this part of the country in the early 80's you likely couldn't sell it for what you paid for it for 15 years, maybe longer.

Last edited by jerp; 07-19-2021 at 01:36 PM.
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Old 07-19-2021, 01:33 PM   #24
ken
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Originally Posted by Sackett View Post
Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....

What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.
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Old 07-19-2021, 02:03 PM   #25
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What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.

Interest rates.

A lot more people can afford a $400k house at 2.5% interest than can afford it at 5% interest.
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Old 07-19-2021, 02:08 PM   #26
jerp
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What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.
Yeah, there's still too much money chasing too few available houses and it could take a long time for that to change. A huge spike in mortgage rates could slow things down but that doesn't seem to be in the cards either - at least not in the immediate future.
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Old 07-19-2021, 02:11 PM   #27
kae006
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Originally Posted by DFWPI View Post
Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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When you say same price, I assume youíre meaning same *payment*. Because unless you move to a completely different market youíre not upgrading from a Pinto to a Corvette at the same price.

We just sold our house in Omaha last week. 5300 finished square feet with an additional 600 sqft of unfinished storage space for $15,000 less than the house weíre buying in Minnesota thatís 2,950 square feet.

If I could have found what we wanted in a rental I would have rented and hoped the market stabilized and/or corrected in the near term, however itís not practical with our situation.


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Old 07-19-2021, 03:44 PM   #28
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I am just waiting on this bubble to burst so I can buy land. Prices are stupid at the moment.
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Old 07-19-2021, 04:04 PM   #29
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Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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Except the Corvette now costs what a Ferrari used to cost. Same thing with trucks. My buddy was ecstatic he got what he paid for a Chevy pickup 3 years ago on trade. He proceeded to buy a Dodge for sticker price when you used to get $10-$13,000 off.
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Old 07-19-2021, 05:27 PM   #30
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I am just waiting on this bubble to burst so I can buy land. Prices are stupid at the moment.
Don't get your hopes up. Very likely chance prices go up more, followed by a period of little to no movement. Any drops in prices are typically minimal.
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Old 07-19-2021, 05:30 PM   #31
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I know a family that was very pleased to get 400k for a house they listed for 350k. Until, the new house contracted to build for 380k has gone up by 100k.......and they're renting an apt for 2k per month until the new house is complete. Crazy times!
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Old 07-19-2021, 05:54 PM   #32
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Originally Posted by HogHunter34 View Post
I agree if you are wanting to sell off rental investments, it is a good time to do it. I bought at the start of this craziness in market values
Iím finding that long term rentals are not too bad given the current market as there is a surplus of renters because they are unable to compete in the current market trend on home values

Iíd love to sell off a few rentals. The issue is the pounding Iíd take on the CG tax


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Old 07-19-2021, 06:37 PM   #33
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we just sold our house in Round Rock that we purchased as a foreclosure- put about $150-175k into it (pool and full remodel), sold it for a $600k profit after 8 years. Rolled that cash into 5 acres and a 2 year old house with a pool in a smaller town with better schools, normal people, no traffic. We paid a little less then we sold our Round Rock house for and I know for certain, I wont be looking back. Our neighbors brought us a box full of fresh vegetables from their garden and a dozen eggs from their chickens this morning to welcome us. never. looking. back.
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Old 07-19-2021, 06:51 PM   #34
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We are being forced to sell due to circumstances out of our control, but it looks like this is going to be a blessing in disguise. Bought our house for $215k one year ago and selling it for cash for $288k. If we had time to put it up on the market, it would probably sell for $300k-$320k.
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Old 07-19-2021, 07:04 PM   #35
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My neighbor built his house 2133sqft.
For 149k in 1998 on 1.25 acres it has an old pool and brand new 30x40 shop. They listed for 450k and sold it in a few hours for 500k.

Got me scratching my head.


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Old 07-19-2021, 07:15 PM   #36
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We took 4 investment properties designed to be paid off within 10yrs to help fund college expenses at that time and sold them all after holding them for 4yrs and made enough to comfortably pay for college for our boys - such a blessing
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