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Three years from now, I’ll be retired and plan on moving to the Raleigh, North Carolina area. In a perfect world, I’d postpone a home purchase until I actually retire and move there, but the housing situation is extremely distressing. I have the means to purchase a home now, and have my living expenses covered while I finished my career here in Washington state. My fear is that if I wait three years, I’ll be priced out of the desirable areas in Raleigh.
Just curious if anyone here has pre-purchased a home in this kind of scenario, and how it worked out. Now that I’m fully vaccinated, I’d feel more at ease traveling to Raleigh and actually making this happen. But the thought of being an absentee homeowner gives me concerns…
You might consider finding someone to rent it out for you-a manager I think they're called. Yes, they charge but they also find good tenants, collect the rent and keep an eye on the place.
3 yrs is a long time IMHO to let a place sit empty. I did that and the place was only 50 or so miles from where I lived and worked. Financially made a little profit but not a lot. The big advantage to me was peace of mind.
We did ..we live in queens nyc ..we bought in the poconos in pa .
It was nice there but once we put our retirement hats on we realized it is not what we want in retirement and pretty much everything was right here in queens .
Also keep in mind second homes ,rentals , etc are prorated when you buy them in advance and later become your primary.
If you ever decide to sell the home again you only get a portion excluded from gains ..so as an example if you buy 3years in advance and make it a primary down the road , after another 3 years you sell , you only get half the exclusion if there are gains
We did ..we live in queens nyc ..we bought in the poconos in pa .
It was nice there but once we put our retirement hats on we realized it is not what we want in retirement and pretty much everything was right here in queens .
Also keep in mind second homes ,rentals , etc are prorated when you buy them in advance and later become your primary.
If you ever decide to sell the home again you only get a portion excluded from gains ..so as an example if you buy 3years in advance and make it a primary down the road , after another 3 years you sell , you only get half the exclusion if there are gains
So if Op bought the second home and waited 3 years to make it his/her primary residence then she/he would need to then live in the home for 6 years as a primary residence before they could sell and get the full exclusion?
I have had a out of state second home for over 10 years. It is close enough to drive to (5 hours). We try to make a trip there once a month. We have security cameras inside and outside to keep an eye on things, and a neighbor I can call or text if I need something checked on.
So if Op bought the second home and waited 3 years to make it his/her primary residence then she/he would need to then live in the home for 6 years as a primary residence before they could sell and get the full exclusion?
No ,you can never get the full exclusion .it always will be prorated by the total time owned vs time as a primary.
If it was a 2nd home or rental three years and a primary for the next six for a total ownership of 9 years you would get 2/3s of the exclusion
My wife and I got married later in life and we decided to keep her house and sell my house. We ran into a problem when the insurance non-renewed for my place. They said if nobody lived there for six months out of the year (I think that was the number), they wouldn't insure it.
We did it, but we weren’t far - about 2.5 hours away. We sold our house in NC, moved to a rental townhouse and bought our house in VA. It needed a lot of renovations, so we were there nearly every weekend working on it. Luckily the basement was finished nicely, so we lived down there on the weekends for about 9 months.
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