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Old 05-17-2014, 06:24 PM
 
161 posts, read 389,484 times
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Wow, I'm getting calls from realtors begging to list my house in South Austin daily. WTH? Do you think the market frenzy will go on for awhile or should I cash out now?
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Old 05-17-2014, 06:30 PM
 
1,549 posts, read 1,950,011 times
Reputation: 1668
Quote:
Originally Posted by chilove View Post
Wow, I'm getting calls from realtors begging to list my house in South Austin daily. WTH? Do you think the market frenzy will go on for awhile or should I cash out now?
Is this your primary residence? If so, where would you go if you sold it?
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Old 05-17-2014, 06:51 PM
 
Location: Austin
15,593 posts, read 10,338,024 times
Reputation: 19426
I don't think the real estate market will be slowing down, not for close to downtown properties. Last stats I read showed Austin #1 in job growth in the country. People are fleeing high taxes in the blue states. I think the weather, lack of snow, and respect for second amendment rights also figure in people relocating here.
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Old 05-17-2014, 06:54 PM
 
Location: Austin
4,105 posts, read 8,275,194 times
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Quote:
Originally Posted by texan2yankee View Post
I don't think the real estate market will be slowing down, not for close to downtown properties. Last stats I read showed Austin #1 in job growth in the country. People are fleeing high taxes in the blue states. I think the weather, lack of snow, and respect for second amendment rights also figure in people relocating here.
I think people like fryin' criminals and historic revisionism in schools, and are moving here for those attractions as well.
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Old 05-18-2014, 09:30 AM
 
161 posts, read 389,484 times
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I want to move somewhere near a beach. Maybe Florida or Puerto Rico. It is my primary residence. My choice is to sell it now and net about 60K or keep it and rent it out for a $400 monthly profit and hold on to it for a few more years and hope it keeps appreciating.
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Old 05-18-2014, 10:24 AM
 
1,156 posts, read 982,831 times
Reputation: 1260
Quote:
Originally Posted by chilove View Post
I want to move somewhere near a beach. Maybe Florida or Puerto Rico. It is my primary residence. My choice is to sell it now and net about 60K or keep it and rent it out for a $400 monthly profit and hold on to it for a few more years and hope it keeps appreciating.
Keep in mind the tax consequences once it becomes a rental property. To still use the primary residence exclusion you must live in the house 2 of the past five years. Once you do sell you must also re-capture the depreciation that was expensed while the property was a rental. Many things to think about. I'm not a tax advisor but would consult one for you particular circumstance. Always good to hold onto in case you decide you want to come back in the future.
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Old 05-18-2014, 10:27 AM
 
Location: The Lone Star State
8,030 posts, read 9,032,650 times
Reputation: 5050
Quote:
Originally Posted by chilove View Post
I want to move somewhere near a beach. Maybe Florida or Puerto Rico. It is my primary residence. My choice is to sell it now and net about 60K or keep it and rent it out for a $400 monthly profit and hold on to it for a few more years and hope it keeps appreciating.
I would then say, why wait? Sell and try to get in your new beach place before our horrible hot summer starts up.
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Old 05-18-2014, 11:19 AM
 
Location: central Austin
7,228 posts, read 16,064,895 times
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Most of the long-time RE investors I know are selling now.
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Old 05-18-2014, 01:08 PM
 
1,549 posts, read 1,950,011 times
Reputation: 1668
I think you should move because you want to move to the beach. The current profit you'd make would be icing on the cake.

Being a landlord in general has all sorts of headaches and costs associated with it that many first timers don't consider. In particular, being an absentee landlord is not for the faint of heart and definitely not something I'd recommend for someone right out of the gate. And as TR95 said, the tax ramifications of keeping your current primary residence as a rental can be significant.
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Old 05-19-2014, 12:21 AM
 
Location: Austin
4,105 posts, read 8,275,194 times
Reputation: 2134
Quote:
Originally Posted by centralaustinite View Post
Most of the long-time RE investors I know are selling now.
Do they feel something funny coming on?
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