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Message edited 10/4/2006 10:34:17 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

well i think you are answering your own question

why is there a HUGE profit in 5 years? Because of the line they are putting in?

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Message edited 10/4/2006 10:34:24 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Message edited 12/13/2005 9:23:31 AM.

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Message edited 10/4/2006 10:34:32 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

yea but i highly doubt anyone would buy a 2 bedroom condo for 500K sue....

especially with the market going the way they think it will

i think it will definitely go up...but not to 500K
JMHO

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Message edited 10/4/2006 10:34:42 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I am not a home owner, so my perspective might be different, but if your ultimate goal is to buy the big house, I think that is what I would do. For me, I don't think it would be worth the hassle of renting for 5 years if I were going to sell the smaller house and move again, even if I made more money on it.

I am so sick of moving, that when I do finally buy a house, I plan on staying there for a long time

Message edited 12/13/2005 9:53:33 AM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I would take into account a couple of things. How much will it cost you to move your stuff Twice (are you getting movers or are you Uhalling yourself). The cost to advertise, fix problems, insurance.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Would you be willing to search for a small/medium house in a town you love that has enough proprty to expand it in the future?
Maybe you'll have to live in a house that is a bit of a fixer short term until the timing is perfect to sell the condo, then you could use that money to turn the medium size house into your ideal. How big of a tax advantage would you have by keeping the condo? I would only rent a property like that through a realtor with extensive credit checks & so on.
real estate is always a risk, but it sounds like you have the potential to make a lot of money if you wait. Good luck with your decision.


ETA-5 years from now might be a great time to sell the condo because of its unique location, but it may not be a good time to sell your second home to buy a bigger one and interest rates could be god knows where by then...just another thing you might want to factor into your decision.

Message edited 12/13/2005 10:19:19 AM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I don't know the real estate market in NJ, but 2 br condos and coops have been reaching the 495K mark in Bay Ridge, Brooklyn. There is an express bus, and the R train (which is local).

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

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Message edited 8/18/2011 2:09:30 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Posted by baghag

Posted by Redhead

Posted by baghag

I don't know the real estate market in NJ, but 2 br condos and coops have been reaching the 495K mark in Bay Ridge, Brooklyn. There is an express bus, and the R train (which is local).

2 BEDROOM CONDOS
O M G

YUP!!! And the maintenance on those babies is nearly 1K.

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Message edited 10/4/2006 10:34:54 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Posted by suvenR

Posted by Redhead

THAT IS INSANE.....serously INSANE

Red, come visit me one day. I'll show you townhouses in Edgewater, NJ (with a view of the NY skyline) that are in the low $900s. Across the street from those are high rises with condos selling in the $600s.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

There are two ways that market in NJ can go.

1) it will go up even more once the light-rail is finished.
2) there will be a supply glut b/c of all the apartments (both condos & rentals that continue to be built).

Either way- I personally would rent out the Condo- do TONS of background checks, references, etc . My aunt does this & has like 4 different properties and at this point she doesn't even have to work.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Make sure you take all the tax implications into account when owning a second property and estimating your "profits".



The two biggest things you have to consider...


You will pay capital gains tax on any house you sell that you have not occupied as your primary residence for two of the past five years. Meaning... you lived in your condo for the past 5 years (lets just say). If you sold today... you pay no gains on your taxes. However... you buy a new property... rent this out. If you do decide to sell after three years of renting it out... you will pay FULL capital gains tax for every profit made. Thats a MAJOR chunk of change.


The other thing to consider is... you must report all rental income on your taxes. This adds to your taxable income and you will be paying taxes on this. So lets just say mortgage and taxes for that rental house is $1000 buks. If you rent it out for $1200 you think you have $200 in profit a month. You don't because after taxes are taken out of that $1200... you will probably be in the red about $100 buks.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

i voted rent and buy small house for 5 years. 5 years wil fly by before you know it.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I am reading this and laughing since in Southern Cal where I live you can't touch a 2 bedroom condo under 500K. Definately keep the condo and buy the medium size house. It WILL appreciate and you will look back on that and regret it.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

Message edited 12/13/2005 1:21:32 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I personally would sell it and buy the bigger house now. I hate moving and house hunting and I would also not like the prospect of renting the condo and possibly having a bad tenant or having them do damage, etc...

Message edited 12/13/2005 1:37:45 PM.

Re: POLL! Sell condo and buy BIG house, or keep condo and buy medium/small house?

I would sell and buy the bigger house. Aside from the taxes, capital gains taxes, and just the pure headache of renting (I've done it) you also have to ask yourself, how much will the bigger house appreciate in that time as compared to the smaller combined with the condo. As the market goes up, will you later be able to as easily afford the big house in the area you want that you might be able to more easily buy now.

Also, life is short. Why put off buying your dream house for 5 years if you can buy it now? Moving s*cks and renting s*cks.