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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,186,228 times
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Quote:
Originally Posted by foundapeanut
I think capital gains taxes would be the least of their worries.
At least it was for us, Its not like the taxes take all your profit. You lived in the house and it went up in value. You didn't work for that money. Just pay the taxes and be glad you are not still dealing with a house sucking about $100,000 a year to live in.
Capital gains is not a big deal, even in our case the equity is still a bit below the $500k mark where the tax kicks in, and it's only on the amount over that. At $6,500/year our taxes are considered high by people in many parts of the country, but it's worth it to us because the money goes to keep the schools good, and crime low.
I never could understand why someone NEEDS a 3 or 4k sqft house. Some retail stores are that.
And thise who have them do nothing but complain about property taxes being so high. Well, duh! You've got the equivalent of a Victorian sized mansion! Victorian mansions were either for 1) the very wealthy, or 2) muliple generations under one roof.
It's no wonder they will have trouble unloading it when they "downsize".
Give me 1k OR LESS ( our house is 896 sqft, bonus room included) any day.
Now, I don't have kids, but they don't all need their own br and bathroom. They can be bunked with a sibling, after all when they get married, they will share a room with a spouse......itll be good practice.
And if you need not one, but 2 or more "walk in closets", perhaps you have too many clothes, not just not enough closet space.
And WHY have " two (or more) of everything " in a single house? (Living room AND family room AND a bonus room; or dining room AND breakfast nook)? Two bathrooms WOULD BE NICE, but my OH deal with JUST one. I grew up with one bath shared by 4 people. It was a miracle to my parents to actually have indoor plumbing!!!
If they can't sell, or can't get what they consider a fair price, they got to enjoy it, and get what they deserve for being greedy.
The trend towards smaller or "tiny" houses fuels the smaller house generation, who doesn't want a "McMansion" to clean and keep up.
So I don't feel sorry for them, as I sit in my cozy "little house".
Good post, lots of truth. No on needs a 4,000 sq. ft house...
I think it's nice when Grandma and Grandpa keep their house for as long as possible. There's something special about going to visit the house where you grew up. Not quite as special having Thanksgiving in a new condo. I also like the idea of having room for people to come back and stay if they need a place to stay. It was never the same after my inlaws sold their house and they were never happy either.
I agree. I know couples where one of them is unhappy in their new condo. Many are also thrilled with the move.
After looking at a lot of condo developments and comparing cost we have decided the best value, and most pleasing option, is staying put in our average priced, mortgage free, 4 BR 2.5 bath. We have updated it to our needs and will sell it that way when we decide. We pay for services that we are unable or unwilling to do now. Among our retired friends most of them still live in their home. Some have kids near by, others are in distant states, like ours. The ones I see selling and moving are younger, in their 50's whose kids have gone to college and I suspect they have a mortgage and want to downsize the mortgage. They are moving to less costly areas, not out of state since they still work. A young family with 2 kids would probably move in their house for the schools.
It was lovely to see our kids and grand kids return home, and BE at home. My son spent his one year sabbatical at home to write his book and really the enjoyment was mutual. Our house is getting used less now as the kids go to inlaws or some other place and have other plans. Which is fine as well.
Capital gains is not a big deal, even in our case the equity is still a bit below the $500k mark where the tax kicks in, and it's only on the amount over that. At $6,500/year our taxes are considered high by people in many parts of the country, but it's worth it to us because the money goes to keep the schools good, and crime low.
Also in our town the money goes, besides schools, towards maintaining a great and beautiful library which provides a lot of cultural and educational events free, conservation of green space, responsive civic services, everything needed for a good life.
Good post, lots of truth. No on needs a 4,000 sq. ft house...
Need maybe not but want and they can afford it why not? The downside may be at the time to sell. However year over year equity gains at the same percentage yields greater profit on the more expensive house.
Also in our town the money goes, besides schools, towards maintaining a great and beautiful library which provides a lot of cultural and educational events free, conservation of green space, responsive civic services, everything needed for a good life.
Just reading the excerpts, the article is completely meaningless to me.
The first guy obviously isn't concerned. OR he's underwater and pretending he's keeping it for grandchildren. LOL. But OK, I know a TON of "older" people with large 5/6 BR homes at the beach and the grown family members come down all the time to visit and would totally want those homes. I have one client with one on the beach and one in Maine for summer and he lives in an Independent Living apartment size CCRC. But he still goes and hangs out at his places and they have family get togethers there.
The Conn, people? Meaningless, too. Probably underwater or not accepting the comps. Wanting to cash out higher. The particularly FUNNY part is CONN is the type of place that LOVES high taxes and growth/govt restrictions but NOW they want to "move South"?
Is that because they've suddenly adopted Southern values? /sarc
More hits on cheaper smaller properties? DUH. Lots of people who foreclosed in the crash or new people wanting to buy are now re-entering the buying market. It took a couple of years.
*shrug
EVERYONE moving to my county in FL is buying large SFH when they're only two people. New construction or recently built. No, not 4000 SF but plenty around 3000 - 3500.
I just left an HOA I work in and the entire development is 3500 SF. And NOW a couple of formerly unbuilt lots are for sale. Either by the people who bought them for future use, or the contiguous owner or whatever. My client was a early retirement couple. She still works and they travel alot.
ONE thing we learned in the past is you can't take what these people say seriously.
REMEMBER in 2008? "NOW is the TIME TO BUY!!!" (realtor desperation -I guess they're doing it in the reverse now - NOW IS THE TIME TO SELL!!!!)
Nothing wrong with downsizing if that is needed or wanted. For us, we are staying in our nice neighborhood and houses that range from 3000 to 4500 sq ft.
We could sell tomorrow for a good price, but why would I move out of town away from great medical, shopping, entertainment, and wonderful city amenity's.
There are no homes for sale in this subdivision, if one becomes available, it’s gone in days. Houses here seem to appreciate monthly. I’m lucky to have a single story house at 3200 sq ft.
Much like the person in this article we spend between $15 to $20K annually in lawn and pool maintenance, taxes, insurance and utilities alone. So what, I would have to pay this even if I downsized.
While this isn't most seniors it is a segment of the market and a segment that often provides the growth for active 55 communities and CCRC's
More from the link:
Will the buyers be there for expensive CCRC's if needed to be sold? Active 55 down the road? etc etc.
We sold almost ten years ago at about 90-95% of the recent market peak. We got out just in time and many others who didn't sell are still behind are just about where they were then and still not at peak. Part of the reason is their house is now thirty years old and not the new thang they once were. Folks who refinanced 11 years ago could well be in a bind now in their 60's plus.
One of the problems with the McMansions is that they are starting to age. It costs an awful lot to remodel a huge home. You can put hundreds of thousands into an older large home, given that these homes are status symbols it matters.
Nothing wrong with downsizing if that is needed or wanted. For us, we are staying in our nice neighborhood and houses that range from 3000 to 4500 sq ft.
We could sell tomorrow for a good price, but why would I move out of town away from great medical, shopping, entertainment, and wonderful city amenity's.
There are no homes for sale in this subdivision, if one becomes available, it’s gone in days. Houses here seem to appreciate monthly. I’m lucky to have a single story house at 3200 sq ft.
Much like the person in this article we spend between $15 to $20K annually in lawn and pool maintenance, taxes, insurance and utilities alone. So what, I would have to pay this even if I downsized.
We are in our mid seventy's.
OH yeah exactly. After my mother died I sold her 4000 SF ranch house in 8 hours or so. Also had full basement. All I had to do was call a realtor I knew who had a long list of people wanting a ranch and that neighborhood where only 2 were ever built.
They actually offered 10% MORE than what I asked for to try and get the deal closed quickly and it worked!
Which was so ironic because I moved my son and myself out of there anticipating that there would be a long drama of "showings". Thank GOD I didn't go to all the trouble of refinishing the hardwood floors because there was some fading around the rugs. They even wanted the carpet - GREAT! ENJOY!
ETA: I just remembered timely: The BUYERS were wife 50 & husb 76 years old HAHAHA. IDK if they were even interested in the pool but there you have it. OH, and 2 acres.
Last edited by runswithscissors; 10-16-2017 at 02:49 PM..
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